Utilization and Cost Management
For companies of a certain size controlling utilization becomes paramount in cost containment. Once an employee threshold is passed the rates of the company's health benefits are directly linked to how often their employees use the benefit. When this situation is in effect it becomes vital to the viability of the benefits program to focus on the health of your employees. Helping our clients understand the importance of the correlation and designing ways to mitigate poor utilization and increasing cost is always at the forefront of our strategic planning.
There are many ways to positively effect utilization:
- Structure plan choices that promote consumer awareness (HSA, HRA, etc)
- Implement an annual Health Risk Assessment to get baseline of health risks facing company
- Create a positive, healthy environment with incentives to participate in programs, focusing on high-risk categories
- Clearly communicate programs
- Educate employees on how to better use the benefits they already have (ie explain the cost difference between going to the ER and going to a walk-in, along with the effect that has on overall cost)