Insurance Center

A recent study known as the Towers Perrin Health Care Cost study has revealed that employers that are successful in acting to reduce their health care benefit costs are providing incentives to their employees such as the implementation of personalized health management and care delivery. In a way similar to that of doctors who are now working toward the personalization of treatment by fitting treatment to meet individual needs and preferences so as to improve outcomes, so are employers working toward the segmentation of their employee populations and the use of a broad range of personalized approaches in order to influence employee behavior and decision making to improve health care a reduced costs. Included in new directions in customization are:

The use of social networking in order to impact the employee’s health and well-being. It is reported that about 7 percent of high performance employers are using this form of personalized communication and influence today. It is projected however, that this group will quadruple in size in the next three years. Another communication technique being used by high performance employers is the use of blogs as a connecting tool. Use of this technique is expected to grow significantly during the next few years.

Another approach that is being used is the personalization of health care delivery so as to encourage better outcomes, including the early return to work. One example of this is the use of a health advocate who manages a serious illness or chronic condition, or a lifestyle coach. The intention is to integrate the disability with effective medical care management.

The report shows that employers are leveraging technology innovations in order to improve health and so as to engage consumers. Now applications are including personal health records with the use of this among high performers being expected to double over the next several years, from 31 percent to 60 percent. Another technique that high performers are expected to use in increasing numbers includes the adoption of remote biometric monitoring as a means for better involving employees in the management of their own health and the improvement of the quality of care they are receiving.

Evolving measurement procedures. By taking a look at what employers are measuring it is possible to gain insight into what they value. The survey indicates that they are increasingly determining the success of their health benefit programs by measuring the impact they have on workforce productivity. well-being, and the overall health of the employee population. One example of this is how high-performing companies are expected to increasingly focus on the health status of employees and health risk, possible gaps in care derived through the ongoing review of medical claims and by measuring the employee’s perception of well-being in the workplace.

Provider incentives. One of the most interesting and also surprising survey findings is that employers are starting to show interest in the use of provider incentives or penalties as a way to encourage new health care practices and see it as having potential for the improvement of outcomes and the reduction of costs. Even though the use by employers of provider incentives is essentially only in its beginnings, data suggest that employers can be expected to be increasingly open to this approach, and that current use may be expected to triple during the next few years.