These days, navigating an overburdened and complicated healthcare system is a common struggle for all Americans. Employers are fed up with the rising costs of plans that don’t meet expectations-- or sometimes even the needs-- of their employees and covered dependents.
Real change to the US healthcare system will only come when employers decide to do something about it. Experts in the field of healthcare analysis were not surprised when, in 2018, JP Morgan, Amazon, and BerkshireHathaway decided to band together to fundamentally change how healthcare is provided to their employees.With a focus on better care for less money, the companies hoped to create a model that was would use data to improve health outcomes at the right price for themselves and their employees.
So what can you do if you aren’t employed by one of these behemoth companies?-- is there a better path that cuts costs and increases employee satisfaction for small to mid-sized businesses? There is, and it's being led by employers and advisors who are using smart data analytics firms like Innovu to make better healthcare decisions and offer more personalized options for employees.
The Employer Sponsored Healthcare Problem
Employers pay for the majority of the healthcare costs for American employees and have been seeing these costs escalate significantly over the years. On average, employers pay for 82% of single coverage plans, and 71% of family coverage plans. In 2018 a single coverage plan cost employers around $5,565 with an average employee contribution of $1,241 per year. For family coverage, employers paid $13,927 while the employee made up the rest by paying $5,689through payroll deductions. These are no small numbers, and employers realize that in order to cut through the waste, they’re going to have to use smart data to achieve meaningful savings without shifting the cost burden to employees.
Since most US employers are self-insured, they have the freedom to control the market and choose where they get healthcare benefits for employees. Beyond just cost, employers can make decisions based on what’s best for their size and the makeup of their employees.
By thoroughly analyzing healthcare data a clear picture emerges of how employees are using their benefits. Employers can use that information to craft a more customized healthcare plan that suits their unique population and controls spending. Complete data analysis via partnership with an industry leader, like Innovu, will uncover hidden cost drivers and dramatically reduce waste. Using deep dive analysis and custom dashboards, employers and advisors have the ability to tailor plans, identify redundancies and clean up wasteful spending.
Employers have the momentum to change healthcare for the better -- The cycle of rising costs can be broken, and those employers and advisors who are willing to look at the data, do the analysis and foster change will see their healthcare costs decline.
Check out more COVID-19 content and business operations solutions at innovu.com/resources.