July 2005 Issue

Contents

Creative Cost Control
—Rising Healthcare Costs
—Consumer-Driven Health Plans
—The Cornerstone Experience

Further Reading

Schedule a Free Plan Design Consultationg

Contact Information

Creative Cost Control—What you may have missed

If you were not  one of the people attending the NIHP program on May 26^th, you missed a fact-filled presentation chock full of ideas to help your business keep costs in line. Here's a quick look at some of the key points.

Rising Healthcare Costs—A Management Challenge

Dick Drogosz, NIHP consultant, discussed various aspects of what rising costs mean to employers, and how local business issues compare to national trends. He suggested that management should position healthcare costs as one of the top ten concerns for their organization, and stressed the importance of keeping everyone informed.

The establishment of a healthcare strategy is a good first step for any group, and may result in the following outcomes:

• Healthier employees
• Solid medical protection for employees
• Lower medical cost trends
• Improved worker productivity (reduced absenteeism)
• Improved employee attraction and retention

Creative Cost Control—Consumer-Driven Health Plans

NIHP director Peggy Fuller clearly defined how CDHPs work, along with specific explanations on Medical Savings Accounts (MSAs), Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs).

When switching to a CDHP, the change is more likely to succeed if you:

• Follow a comprehensive process with knowledgeable advisors
• Never underestimate employees' resistance to change when implementing a CDHP
• Educate employees on health care challenges
• Communicate early and frequently
• Provide alternative plan designs
• Offer full coverage of preventive care—the best health care is the kind that keeps people healthy
• Provide good incentives to get people engaged

Consumer Driven Health Plans—The Cornerstone Credit Union Experience

So does a CDHP in practice actually work? According to Gail Clore, Cornerstone Credit Union president, the answer is yes. She shared her experience on creating a design for the employees at her organization. The results have been positive with reduced cost increases, more flexibility for employees in the use of their benefit dollars, better employee understanding of benefits programs and the ability to continue to offer group health plans for all employees and dependents.

Further Reading

Create Cost Control

A complete set of the materials used for the spring Creative Cost Control presentation. (4MB, Adobe PDF file)

2004 Employer Health Benefits Annual Survey

How fast are health care costs rising, and how are those rising costs affecting you and your employees? HRET and The Kaiser Family Foundation include details in their 2004 annual survey of employers.

Consumer-Driven Health May Be Tastiest as A One-Dish Meal

Explanations on how making FSAs, HRAs and HSAs appetizing to employees will require employers to hone their benefit strategies and communicate plan changes effectively.

Attention Shoppers: Consumer-driven Health Plans Are Catching on Quickly, But Are They the Answer to Runaway Medical Costs?

Getting employees engaged in the purchase of their health care may sound like a powerful idea. Giving them the tools through a CDHP is the key to making it all work.

Schedule a Free Plan Design Consultation

NIHP works along with your insurance broker to analyze your current plan benefits and costs. After clarifying your health plan objectives, we'll explore various plan designs and then suggest methods for the design and implementation of your alternative plan options.

Simply send an email message to Peggy Fuller with your company name and your request.

For more information contact us at:
(800) 723-0202 or NIHPCustomerService@fhn.org

1006 W. Stephenson St., Freeport, IL 61032

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