The Issue
A large client of ours had already implemented most of the typical cost containment methods relating to employee benefits, but had tasked us with coming up with a creative, new cost-control strategy.
Our Solution
We decided the best course of action for this client would be to improve the level of health care literacy within the company, including not just its employees but the employee’s families as well. Studies have shown that limited health care literacy can lead to:
- A lack of routine, preventive care,
- Ineffective use of medical benefits, treatments and/or medications
- Inability to manage health issues properly
Of course, these impacts from deficient health care literacy not only affects the outcomes and out-of-pocket for employees, but also increases the employee benefits budget for the employer. To improve the health care literacy levels for employees of this company, we decided to focus on a plan that would:
- Communicate and educate employees and their dependents on a regular basis, using simple language and targeting areas of interest for this particular group’s demographics and claims utilization patterns.
- Utilize not only electronic means, but also group seminars, employee one-on-one sessions and a professional speaker series to accommodate the various capability levels of each employee and/or family member.
- Make it a year-round experience, not solely focused on open enrollment season.
The Result
After two years, the efforts to increase the health care literacy level of employees within this company seems to be working. Based on claim utilization data, the health of the company’s workforce has improved which has not only benefited the employees and their families, but the 5% reduction in claims compared to the two years prior to the literacy campaign has produced a savings of $212,000 for the employer!
Contact us for a more thoughtful, creative approach to cost control strategies for your employee benefits budget!