1. Self-Insured Employer Health Benefits Strategy Established a Negative Cost Trend While Improving Performance
- Author
-
Jay Wohlgemuth, Steven E Goldberg, and Maren S. Fragala
- Subjects
Adult ,Male ,Triple Aim ,medicine.medical_specialty ,Leadership and Management ,reduce health care costs ,Pharmacy ,Population health ,03 medical and health sciences ,Actuarial present value ,0302 clinical medicine ,Cost Savings ,Health care ,medicine ,Humans ,030212 general & internal medicine ,Actuarial science ,business.industry ,Employee benefits ,030503 health policy & services ,Health Policy ,Public health ,Public Health, Environmental and Occupational Health ,Health Care Costs ,Original Articles ,Preferred provider organization ,employee health plan ,Health Benefit Plans, Employee ,employer health care ,Health promotion ,Female ,0305 other medical science ,business - Abstract
This case study describes the collaboration between a self-insured employee benefits team and a national health insurance provider to control costs while maintaining program quality and promoting population health. In 2015, Quest Diagnostics well exceeded the full-year expense target for their ∼60,000-life Group Health Insurance (GHI) program. Through proactive changes, physician executive leadership, health plan collaboration, disease-specific population health initiatives, and plan design, Quest GHI annual employer health care cost trend subsequently improved from a year-over-year trend of 5.7% for 2014 to 2015, to 4.6% for 2015 to 2016, to −1.0% for 2016 to 2017, and most recently, 0.3% for 2017 to 2018. The actuarial value of the GHI plan did not decline, and employee cost share also remained unchanged in 2017 and 2018 versus 2016 for the high-performance network option. There was a 3% premium increase for the Preferred Provider Organization option in 2018. A third-party analysis for full year 2017 showed Quest GHI to be 11% more efficient than the mean GHI for programs with a comparable benefit and employee contribution. Early results in 2018 show improvements in the health status of the health plan membership. This article describes an approach for self-insured employers to proactively collaborate with a health plan and pharmacy benefits manager to practice the Triple Aim of improving the patient health care experience and population health while reducing per capita health care spending.
- Published
- 2019
- Full Text
- View/download PDF