The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value

808 views

Published on

Employers are at a line of demarcation in how they structure and deliver health benefits. Many are focused solely on financing/coverage of health care and do not understand the importance and business impact of health outcomes such as absence, disability, performance and productivity. Thomas Parry, president of the not-for-profit Integrated Benefits Institute, will discuss the full costs of health, how to make the business case to senior leaders and how to track key results.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
808
On SlideShare
0
From Embeds
0
Number of Embeds
37
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value

  1. 1. #WFwebinar The presentation will begin at the top of the hour. A dial in number will not be provided. Listen to today’s webinar using your computer’s speakers or headphones. The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value
  2. 2. #WFwebinar         Speaker: Thomas Parry President Integrated Benefits Institute Moderator: Kellye Whitney Associate Editorial Director Workforce magazine The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value
  3. 3. #WFwebinar         Tools You Can Use Audio Control –  A dial in number will not be provided. –  Adjust the volume by sliding the indicator in the Media Player box to the left. –  Also check your computer’s volume for external speakers or headsets.
  4. 4. #WFwebinar         Tools You Can Use Question & Answer –  Type in your question in the “Q&A” box to the left. –  These queries are visible by the presenter ONLY. –  Type your question in the space at the bottom. –  Click “Send.”
  5. 5. #WFwebinar         Tools You Can Use Twitter -  Click “Post” in the Twitter widget. #WFwebinar @WorkforceNews
  6. 6. #WFwebinar Tools  You  Can  Use   Speaker Bios Resources Media Player Q&A Slides Twitter Help Post Event Evaluation Share This
  7. 7. #WFwebinar         1. May I receive a copy of the slides? YES! Click on the resource list located on the top left portion of your screen. 2. May I review the webinar recording at a later date? YES! You may log in again using today’s link to review the presentation on-demand. Frequently  Asked  Ques6ons  
  8. 8. #WFwebinar         Kellye Whitney Associate Editorial Director Workforce magazine The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value
  9. 9. #WFwebinar         Thomas Parry President Integrated Benefits Institute The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value
  10. 10. The Changing Landscape of Employer Health Benefits -- From Cost to Business Value -- Thomas Parry, Ph.D. President Integrated Benefits Institute
  11. 11. A New Employer Setting •  Responding to the ACA: Why stay in? •  Show the C-suite the value of improved workforce health •  Dead end: attempting to control claims costs in separate program silos •  Looking for best strategies to improve workforce health, reduce lost time, enhance productivity and impact business •  Limited data, time and dollars
  12. 12. Where Employers Started: Cost Shifting Health CostsPlan Design
  13. 13. Trying to Get on the Front End of Cost Treatment Health CostsPlan Design Chronic Health Conditions Health Risks
  14. 14. Understanding Outcomes Treatment Health CostsPlan Design Chronic Health Conditions Health Risks Work Absence/ Disability Work Performance Lost Productivity
  15. 15. Next: Encompassing a Broader View Treatment Health CostsPlan Design Chronic Health Conditions Health Risks Work Absence/ Disability Work Performance Lost Productivity EE Health Behaviors & Engagement Corporate Culture & Structure Business Performance Wellbeing
  16. 16. What’s at Risk for Employers?
  17. 17. The True Costs of Health •  10,000 life manufacturing company •  71% male •  19% of employees 55 years or older •  61% skilled/semi-skilled laborers
  18. 18. Healthcare Costs – The Traditional View
  19. 19. Health Costs – Adding Lost Time Costs
  20. 20. The Total Costs of Health
  21. 21. Full Cost Components
  22. 22. Number of Chronic Conditions
  23. 23. Chronic Conditions & Treatment
  24. 24. Chronic Condition Prevalence -- Top Five --
  25. 25. Lost Productivity Costs: Top 5 Chronic Conditions $5.5 $4.3 $3.8 $3.2 $3.0
  26. 26. Chronic Conditions & Co-Morbidities
  27. 27. Linking Healthcare to Productivity Outcomes
  28. 28. Going Beyond Medical & Pharmacy to Absence and Presenteeism $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Costper1000EEs Medical Pharmacy Absence lost prod Presenteeism lost prod
  29. 29. Co-Morbidity and Lost Time
  30. 30. IBI Research: Making Health the CFO’s Business
  31. 31. Principal Findings •  CFOs are key participants in benefits decisions •  Health is an organizational priority •  Productivity is critical to the bottom line, but the role of health is less clear •  CFOs understand that health impacts performance •  Internal information is most credible •  Critical information for health-investment decisions is lacking
  32. 32. The Impact of a Health-Focused Culture •  Improving health is seen as very important to productivity •  Health’s impact on business goes beyond healthcare costs and includes sick leave, “opportunity costs” of health, turnover, and absence payments •  Broader information available to make investment decisions: EE satisfaction, health risks, performance impact, ROI
  33. 33. Strength of Health Culture
  34. 34. The Impact of a Health-Focused Culture •  Improving health is seen as very important to productivity •  Health’s impact on business goes beyond healthcare costs and includes sick leave, “opportunity costs” of health, turnover, and absence payments •  Broader information available to make investment decisions: EE satisfaction, health risks, performance impact, ROI
  35. 35. Linking Health & Financial Performance: Putting Results in the CFO’s Terms •  Healthcare costs •  Sick days •  Turnover •  “Opportunity costs” •  Absence payments
  36. 36. Broad Information is Useful … But Not Very Available
  37. 37. MGM Mirage Case Study
  38. 38. IBI Health & Productivity Snapshot Results 1.8 lost days per FTE/Year 6.2 lost days per FTE/Year Lost worktime = 8 days per FTE/Year or $2,598 per FTE/ Year in Lost Productivity
  39. 39. Lost-Time Improvement’s Impact on EBIDTA Reducing 1 lost day/FTE = $15 MM to EBIDTA* from Productivity Gains *Earnings before Interest, Depreciation, Taxes and Amortization
  40. 40. The Bottom Line Savings $15.0 MM Wall-Street Multiple 10.7X Outstanding Shares 284.3 M Gain in Stock Price $ .56/share Principal Owner (56%) $90 MM One Day of Productivity Improvement
  41. 41. The Challenge of “Big Data” to Employers
  42. 42. Workforce Key Health Dimensions* Ø  Financial (cost) Ø  Program participation Ø  Biometric screening Ø  Health risks Ø  Utilization Ø  Preventive care Ø  Chronic conditions Ø  Lost worktime Ø  Lost productivity Ø  Employee engagement * Thomas Parry and Bruce Sherman, A Pragmatic Approach for Employers to Improve Measurement in Workforce Health and Productivity, Population Health Management, Vol. 15, No. 2, 2012
  43. 43. The Temporal Dimension Leading indicators ü  Health risks ü  Biometrics ü  Chronic condition prevalence Treatment indicators ü  Preventive care ü  EE engagement ü  Health services utilization ü  Program participation Lagging indicators ü  Financial ü  Lost worktime ü  Lost productivity
  44. 44. Dimensions & Dashboard Metrics Dimension Summary Metric Financial Program cost/EE Program participation EEs participating/All EEs Biometrics EEs reaching target/All EEs Health risks # of health risks/EE Utilization # EEs getting care/All EEs Preventive care # EEs getting screened/All EEs Chronic conditions # EEs w/ chronic conditions/All EEs Lost worktime # of lost workdays/EE Lost productivity Lost productivity $/EE Employee engagement Engagement score/EE
  45. 45. Thinking about Metrics as Hierarchies Dashboard metrics Component metrics Contributing metrics
  46. 46. For more information: Thomas Parry tparry@ibiweb.org 415-222-7282
  47. 47. #WFwebinar         Please complete the webinar evaluation.
  48. 48. #WFwebinar         Join our next Webinar! The Recruiter Makeover — 7 Ways Recruiters Can Reinvent Themselves as Marketers Wednesday, August 13, 2014 Webinars start at 2 p.m. Eastern / 11 a.m. Pacific Register for all upcoming Talent Management Webinars at www.workforce.com/webinars

×