Spiraling health care costs are prompting a “full crisis mode” for many large U.S. employers, as they report an expected annual 12% cost increase—against a self-reported affordable increase of just 8%.
By 2008, health care costs for the average FORTUNE 500® company will likely equal net profits, severely impacting the ability to compete on a global scale.
It’s an increase most companies simply can’t afford. But they report feeling handcuffed, lacking strategies that can take a big bite out of cost increases. Fortunately, Hewitt has identified several “levers” companies can pull to dramatically lower costs and increase efficiency, driving results that take the crisis out of health care costs. The levers include the following.
Health benefit coverage and cost sharing
Innovative companies are leveraging the trend toward consumer-driven health care by offering more choices and letting employees choose a specific level of benefits. Innovative enrollment and administration technologies such as Hewitt’s Build Your Own health plan design handle the increased complexity that comes from introducing additional choices.
Data-driven purchasing
We have deep domain experience combining health care expertise, proven purchasing processes, and best-in-class procurement and technology platforms. The result: reduced health care costs to your organization without compromising quality care for your employees.
Employee cost and quality decisions
We can show you how the Web can make enrollment as easy as buying an airline ticket, making key information—cost and quality of competing hospitals, doctors, and pharmacies—available to employees. We also model and trace your costs to ensure that actual spending aligns with corporate goals.
Healthy lifestyles
Forward-thinking companies are being proactive, prioritizing health risks/costs and creating integrated interventions to lower costs and improve overall health. Our communication expertise guarantees privacy for your employees while spreading a healthy message to those who need it.
Migration to providers based on cost and quality
We believe that employees should know which providers offer the best value—information that’s widely available in every other market. The innovation here is collecting and communicating quality/price data that employees can use.
Pharmacy management
Spiking drug costs—combined with increased usage—drive higher prices. We can design a comprehensive pharmaceutical strategy, including tactics that encourage the use of lower-cost drugs. We also help employers deliver critical communication throughout the year, helping employees make informed decisions about prescription drugs and stay on critical medications.
We’ve helped hundreds of firms pull the levers that help them regain control over their health care expenses, by coordinating changes in the design, delivery, administration, and communication of their programs to reverse skyrocketing cost trends.
The bottom line: The six levers of health care can help you control your annual increase in health care costs.
Please contact us for more information about how we can help tame your company’s health care cost crisis.
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Hewitt Health Resource™ and Hewitt Health Value Initiative™ are trademarks of Hewitt Management Company LLC
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