Contents
Healthcare Cost Shifting
Quick Poll–Review
January Quick Poll–Vote
Introducing the Smartflex Visa Debit Card
Further Reading
Contact Information
NIHP Home
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HEALTHCARE COST SHIFTING
—DEVELOPING A PLAN
In our October issue we asked you, our readers, which cost-shifting strategies were most appealing (see results chart, below). As you can see, all the options identified were equally popular – no single one stands out as your “go-to” game plan.
So what is your next step? Should you ease into cost shifting, implementing one program at a time and testing its effectiveness? Or should you try a multi-step approach? Should you give employees choices from many options or mandate one or two?
Certainly, no single answer is right for all employers. Here are some of the factors you’ll need to evaluate to determine which cost-shifting strategies are right for you.
- Your size – if you’re a small business, you may need to select a strategy that will have higher financial impact per employee. It might be the only way you’ll see a measurable difference worth your effort, at least in the short term. You may also find it easier to communicate to and discuss changes with your workforce…a time investment that may prove very worthwhile. For you, increasing the deductible or out-of-pocket amounts, may be the best option.
- Your business’s personality – do you see your company as innovative? Modern? Even edgy? Know who you are (or at least who you want to be) and make your choices accordingly. For example, if you see your business as trendy and leading-edge, on-site consumerism seminars might be perceived as a viable approach.
- Your workforce demographics – if you oversee a traditional company with older employees (and perhaps more health challenges), higher contribution amounts may be better received than reducing benefits. However, if you employ younger workers with looser expectations and shorter tenure, reducing benefits may fit the bill just fine. Employees who have dependents vs. single employees will also influence how your plan will be received.
- Your financial expectations – do you need your cost-shifting programs to dramatically reduce costs? Or will you be satisfied if you can just stabilize your healthcare spending? Some strategies, like increasing the deductible and out-of-pocket amounts will likely produce greater savings . . . but also can cause the most controversy upon implementation.
Weigh your choices carefully. Picking the right plan is a complex process with dramatic human resources implications. If you need help analyzing your healthcare management options, or effectively communicating them to your workforce, contact your broker or give the experts at NIHP a call. We stay abreast of all the latest in plan design and stand ready to provide you and/or your broker personal service to help you make informed decisions.
A Quick Review of Last Issue's "Quick Poll"
Here’s a look at which cost-shifting strategies our readers find most appealing, based on responses to our October issue’s quick poll.
January Quick Poll–Vote
Do you plan to implement new cost-shifting strategies in the next year?
(Click a response to vote. Answers are strictly anonymous.)
Then, visit the NIHP website to view this issue's quick poll results.
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INTRODUCING THE SMARTFLEX VISA DEBIT CARD
NIHP is pleased to announce the availability of the SmartFlex Visa Debit Card for use with Flexible Spending Accounts administered by NIHP. With the SmartFlex Visa debit card, participants have instant access to the pre-tax funds available in their Flexible Spending Account. If you are currently using NIHP for your Flexible Spending Account administration, contact us for a SmartFlex Debit Card quote. If you would like to receive a quote for Flexible Spending Account administration with the Smart Flex Visa debit cards, please contact Sal Marino, the NIHP Regional Sales an Marketing Manager at Northern Illinois Health Plan (815) 599-7058 or by email at Smarino@fhn.org.
Further Reading
- Predictions on employee benefits in 2007
Benefit News, January 1, 2007.
- Looking ahead to 2007, some slight changes are expected in employee benefits. It was noted that health plans can sometimes save money by cost-shifting, but this is often seen as a burden to the lower paid and less healthy. Thus this issue may become an “easy target” for lawmakers who may view such programs as favoring the wealthy.
- US health benefit cost increases level off at 6.1% in 2006
Mercer Human Resource Consulting, November 2006
- A recent study by Mercer found that 31 percent of employers said shifting costs to employees or scaling back benefits will play a significant or very significant role in controlling cost in the next five years. Employers are indicating that they plan to focus on tactics to improve employee health and make them better health care consumers.
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