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The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value
The webinar featured a presentation by Thomas Parry on the evolving landscape of employer health benefits, focusing on the shift from cost-oriented to value-oriented strategies. Key discussions included the significance of health in workforce productivity, the financial implications for employers, and strategies for improving employee well-being. Attendees were informed about available resources, including slides and recordings of the session.
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The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value
- 1. #WFwebinar The presentation willbegin 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. #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
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- 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. #WFwebinar Kellye Whitney Associate Editorial Director Workforce magazine The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value
- 9. #WFwebinar Thomas Parry President Integrated Benefits Institute The Changing Landscape of Employer Health Benefits — The Transition From Cost to Value
- 10. The Changing Landscapeof Employer Health Benefits -- From Cost to Business Value -- Thomas Parry, Ph.D. President Integrated Benefits Institute
- 11. A New EmployerSetting • 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. Where Employers Started:Cost Shifting Health CostsPlan Design
- 13. Trying to Geton the Front End of Cost Treatment Health CostsPlan Design Chronic Health Conditions Health Risks
- 14. Understanding Outcomes Treatment Health CostsPlanDesign Chronic Health Conditions Health Risks Work Absence/ Disability Work Performance Lost Productivity
- 15. Next: Encompassing aBroader 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. What’s at Riskfor Employers?
- 17. The True Costsof Health • 10,000 life manufacturing company • 71% male • 19% of employees 55 years or older • 61% skilled/semi-skilled laborers
- 18. Healthcare Costs –The Traditional View
- 19. Health Costs –Adding Lost Time Costs
- 20. The Total Costsof Health
- 21.
- 22. Number of ChronicConditions
- 23. Chronic Conditions &Treatment
- 24. Chronic Condition Prevalence --Top Five --
- 25. Lost Productivity Costs:Top 5 Chronic Conditions $5.5 $4.3 $3.8 $3.2 $3.0
- 26. Chronic Conditions &Co-Morbidities
- 27.
- 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.
- 30. IBI Research: Making Healththe CFO’s Business
- 31. Principal Findings • CFOsare 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. The Impact ofa 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. Strength of HealthCulture
- 34. The Impact ofa 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. Linking Health &Financial Performance: Putting Results in the CFO’s Terms • Healthcare costs • Sick days • Turnover • “Opportunity costs” • Absence payments
- 36. Broad Information isUseful … But Not Very Available
- 37. MGM Mirage CaseStudy
- 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. Lost-Time Improvement’s Impact onEBIDTA Reducing 1 lost day/FTE = $15 MM to EBIDTA* from Productivity Gains *Earnings before Interest, Depreciation, Taxes and Amortization
- 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. The Challenge of“Big Data” to Employers
- 42. Workforce Key HealthDimensions* 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. The Temporal Dimension Leadingindicators 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. Dimensions & DashboardMetrics 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. Thinking about Metricsas Hierarchies Dashboard metrics Component metrics Contributing metrics
- 46. For more information: ThomasParry tparry@ibiweb.org 415-222-7282
- 47. #WFwebinar Please complete the webinar evaluation.
- 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