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A	Framework	for	Enhancing	Benefits	and	Reducing	the	Aggregate	
Health	Care	Spend	for	Employers,	their	Employees	and	Covered	
Dependents		
mployer	Advantage	Health	Care	Services	(Employer	Advantage)	has	
developed	and	implemented	a	model	for	controlling	the	aggregate	cost	of	
healthcare	spending	under	an	employer	sponsored	health	benefit	plan.		The	
model,	designed	for	self-funded	employers	and	self-funded	employer	
cooperatives,	is	focused	on	establishing	and	developing	a	team	of	community	
based	primary	care	practice	teams	ready,	willing,	and	able	to	be	held	
accountable	for	cohorts	of	covered	individuals	aligned	
with	their	respective	practices.			In	exchange	for	
accepting	these	roles	as	enhanced	primary	care	
practice	teams,	the	employer	would	be	asked	to	
agree	to	alternative	forms	of	compensation	that	
would	empower	the	practice	team	to	effectively	
manage	the	needs	of	the	covered	individual	
cohort.		Employer	Advantage	leverages	historical	
claims	data	and	practice	level	audits	to	set	goals,	
track	activities,	measure	results,	and	ensure	
desired	outcomes.		The	desired	outcomes	fall	into	three	basic	
categories	of	effort;	improved	health	status	of	the	population,	reductions	in	
aggregate	spending,	and	high	levels	of	patient	satisfaction	and	activation.		These	
categories	are	often	referred	to	as	the	Triple	Aim.	
	
mployer	Advantage,	following	engagement	as	a	vendor	to	an	employer,	
would	convene	two	sets	of	focus	groups.		The	first	set	would	consist	of	
covered	individuals,	from	among	that	self-funded	employer’s	employees	and	
covered	dependents,	who	would	be	asked	to	provide	feedback	and	insight	into	
what	it	would	take	to	create	an	enhanced	primary	care	program	they	would	be	
most	likely	to	voluntarily	“opt	in”	to.		The	focus	group	would	be	provided	
foundational	information	and	definitions	of	
key	terms	and	concepts.		The	second	focus	
group	set	would	consist	of	key	primary	care	
practice	representatives	from	throughout	
the	targeted	communities	represented	by	a	
covered	individual	geo	analysis.		This	
primary	care	focus	group	would	be	asked	
to	provide	feedback	and	insight	regarding	
what	it	would	take	to	develop	a	model	for	
“The Employer Advantage
model represents a solid
solution for self-funded
employers interested in
improving the health status
of their employees and
their dependents covered
under the self-funded
benefit plan, lowering the
overall cost of the self-
funded benefit plan, and
delivering high rates of
benefit plan participant
satisfaction.”
Paul Grundy, MD, MPH,
FACPM, FACOEM
IBM's Global Director of
Healthcare Transformation
A	Proposal	for	Enhancing	Benefits	and	Reducing	the	Aggregate	Health	Care	Spen
For	Broome	County	Government	Employees	and	Covered	Dependents	
	
mployer	Advantage	Health	Care	Services	(Employer	Advantage)	has	developed	an
implemented	a	model	for	controlling	the	aggregate	cost	of	healthcare	spending	un
employer	sponsored	health	benefit	plan.		The	model,	designed	for	self-funded	
employers,	is	focused	on	establishing	and	developing	a	team	of	community	based	prima
practice	teams	ready,	willing,	and	able	to	be	held	accountable	for	cohorts	of	covered	ind
aligned	with	their	respective	practices.			In	exchange	for	accepting	these	roles	as	primary
practice	teams,	the	employer	would	be	asked	to	agree	to	
alternative	forms	of	compensation	that	would	empower	the	
practice	team	to	effectively	manage	the	needs	of	covered	
individual	cohort.		Employer	Advantage	uses	historical	
claims	data	and	practice	level	audits	to	set	goals,	track	
activities,	measure	results,	and	ensure	desired	outcomes.		
The	desired	outcomes	fall	into	three	basic	categories	of	
effort;	improved	health	status	of	the	population,	reductions	
in	aggregate	spending,	and	high	levels	of	patient	satisfaction	
and	activation.		These	categories	are	often	referred	to	as	the	
Triple	Aim.	
	
mployer	Advantage,	following	engagement	as	a	vendor	to	Broome	County	Gover
would	convene	two	sets	of	focus	groups.		The	first	set	would	consist	of	covered	
individuals,	from	among	Broome	County	employees	and	covered	dependents,	wh
would	be	asked	to	provide	feedback	and	insight	into	what	it	would	take	to	create	an	enh
primary	care	program	they	would	be	most	likely	to	voluntarily	“opt	in”	to.		The	focus	gro
would	be	provided	foundational	information	and	definitions	of	key	terms	and	concepts.	
second	focus	group	set	would	consist	of	primary	care	
practice	representatives	from	United	Health	Servic
(UHS),	Lourdes	Hospital	(Lourdes)	and	Endwell	Fam
Physicians	(EFP).		This	primary	care	focus	group	wo
asked	to	provide	feedback	and	insight	regarding	wh
would	take	to	develop	a	model	for	primary	care	
performance	and	accountability.		The	focus	group	w
be	provided	foundational	information	and	definitio
key	terms	and	concepts.		The	primary	care	focus	grou
would	be	acknowledged	and	celebrated	for	having	achieved	
recognition	by	the	National	Committee	for	Quality	Assurance	
(NCQA)	as	a	Patient	Centered	Medical	Home	(PCMH).		They	
would	also	be	challenged,	as	part	of	this	business	model,	to	
demonstrate	a	level	of	proficiency	as	a	NCQA	PCMH	model	
A	Proposal	for	Enhancing	Benefits	and	Reducing	the	Aggregate	Health	Care	Spen
For	Broome	County	Government	Employees	and	Covered	Dependents	
	
mployer	Advantage	Health	Care	Services	(Employer	Advantage)	has	developed	and
implemented	a	model	for	controlling	the	aggregate	cost	of	healthcare	spending	un
employer	sponsored	health	benefit	plan.		The	model,	designed	for	self-funded	
employers,	is	focused	on	establishing	and	developing	a	team	of	community	based	primar
practice	teams	ready,	willing,	and	able	to	be	held	accountable	for	cohorts	of	covered	ind
aligned	with	their	respective	practices.			In	exchange	for	accepting	these	roles	as	primary
practice	teams,	the	employer	would	be	asked	to	agree	to	
alternative	forms	of	compensation	that	would	empower	the	
practice	team	to	effectively	manage	the	needs	of	covered	
individual	cohort.		Employer	Advantage	uses	historical	
claims	data	and	practice	level	audits	to	set	goals,	track	
activities,	measure	results,	and	ensure	desired	outcomes.		
The	desired	outcomes	fall	into	three	basic	categories	of	
effort;	improved	health	status	of	the	population,	reductions	
in	aggregate	spending,	and	high	levels	of	patient	satisfaction	
and	activation.		These	categories	are	often	referred	to	as	the	
Triple	Aim.
2
primary	care	performance	and	accountability.		
The	focus	group	would	be	provided	
foundational	information	and	definitions	of	key	
terms	and	concepts.		The	primary	care	focus	
group	would	be	acknowledged	and	celebrated	
for	having	achieved	recognition	by	the	National	
Committee	for	Quality	Assurance	(NCQA)	as	a	
Patient	Centered	Medical	Home	(PCMH).		They	
would	also	be	challenged,	as	part	of	this	business	model,	to	demonstrate	a	level	
of	proficiency	as	a	NCQA	PCMH	model	practice	to	meet	the	Triple	Aim	results	
and	outcomes,	as	overseen	by	Employer	Advantage,	on	behalf	of	the	self-funded	
employer	and	its	covered	individuals.	
	
n	addition	to	facilitating	prospective	covered	individual	participation	and	
primary	care	performance	and	
accountability,	Employer	Advantage	
would	analyze	36	months	of	historical	
claims	data	to	identify	employer	
needs,	opportunities	and	key	
program	design	elements.		The	
claims	analysis	would	help	drive	
delivery	system	modification	decision-
making	and	payment	reform	strategy.		The	current	system	of	delivery	
and	finance,	based	on	fee-for-service	healthcare	transactions,	causes	
communities	to	adopt	and	maximize	models	focused	on	the	alignment	of	care	
that	is	paid	for	versus	care	that	addresses	the	actual	needs	of	covered	
individuals.		This	means	covered	individuals	only	seek	and/or	agree	to	care	they	
believe	is	covered	under	the	benefit	plan	and	often	refuse	or	ignore	care	that	is	
more	closely	aligned	with	their	actual	health	status	needs	or	wants.		The	
Employer	Advantage	approach	to	analyzing	claims	data	helps	to	identify	these	
circumstances	and	recommend	the	types	of	strategies	that	lead	to	value	based	
care	delivery	and	finance	in	a	highly	transparent	fashion.	
	
mployer	Advantage	suggests	this	type	of	initiative	for	self-funded	
employers	who	are	among	the	largest	employers	in	a	region,	which	would	
set	the	stage	for	a	community	wide	model	of	care	delivery	and	finance	other	
employers	could	benefit	from.		The	first	self-funded	employer	could	serve,	for	
example,	as	a	foundational	member	of	a	community	wide	employer	cooperative	
for	both	private	and	public	employers	and/or	business	group	on	health	for	all	
employers.
For	more	information	contact:	
	
Jed	Constantz,	Co-founder,	Chief	Strategy	Officer/Vice	President	Client	Relations	
615-427-4225	ex	137	/	jconstantz@eahcs.com	
A	Proposal	for	Enhancing	Benefits	and	Reducing	the	Aggregate	Health	Care	Spen
For	Broome	County	Government	Employees	and	Covered	Dependents	
	
mployer	Advantage	Health	Care	Services	(Employer	Advantage)	has	developed	and
implemented	a	model	for	controlling	the	aggregate	cost	of	healthcare	spending	un
employer	sponsored	health	benefit	plan.		The	model,	designed	for	self-funded	
employers,	is	focused	on	establishing	and	developing	a	team	of	community	based	primar
practice	teams	ready,	willing,	and	able	to	be	held	accountable	for	cohorts	of	covered	ind
aligned	with	their	respective	practices.			In	exchange	for	accepting	these	roles	as	primary
practice	teams,	the	employer	would	be	asked	to	agree	to	
alternative	forms	of	compensation	that	would	empower	the	
practice	team	to	effectively	manage	the	needs	of	covered	
individual	cohort.		Employer	Advantage	uses	historical	
claims	data	and	practice	level	audits	to	set	goals,	track	
activities,	measure	results,	and	ensure	desired	outcomes.		
The	desired	outcomes	fall	into	three	basic	categories	of	
effort;	improved	health	status	of	the	population,	reductions	
in	aggregate	spending,	and	high	levels	of	patient	satisfaction	
and	activation.		These	categories	are	often	referred	to	as	the	
Triple	Aim.	
	
n	addition	to	facilitating	prospective	covered	individual	participation	and	primary	care
performance	and	accountability,	Employer	Advantage	wou
analyze	36	months	of	historical	claims	data	to	identify	
employer	needs,	opportunities	and	program	design	
elements.		The	claims	analysis	would	help	drive	deliv
system	modification	decision-making	and	paymen
reform	strategy.		The	current	system	of	delivery	a
finance,	based	on	fee-for-service	healthcare	
transactions,	causes	communities	to	adopt	and	maxim
models	focused	on	the	alignment	of	care	that	is	paid	for	versus	care	that	
addresses	the	actual	needs	of	covered	individuals.		This	means	covered	individuals	only	see
and/or	agree	to	care	they	believe	is	covered	under	the	benefit	plan	and	often	refuse	or	igno
care	that	is	more	closely	aligned	with	their	actual	health	status	needs	or	wants.		The	Employ
Advantage	approach	to	analyzing	claims	data	helps	to	identify	these	circumstances	and	
recommend	the	types	of	strategies	that	lead	to	value	based	care	delivery	and	finance.	
	
mployer	Advantage	suggests	this	type	of	initiative	by	Broome	County	Government,	a
one	of	the	largest	employers	in	the	region,	would	set	the	stage	for	a	community	wid
model	of	care	delivery	and	finance	other	employers	could	benefit	from.		Broome	Co
could	serve,	for	example,	as	a	foundational	member	of	a	community	wide	municipa
cooperative	for	public	employers	and/or	business	group	on	health	for	private	employers.	
	
Respectfully	submitted,	
	
Jed	C.	Constantz,	Chief	Strategy	Officer	
December	2016	
“Employer
Advantage has a
model of
transparency and
process of care
redesign that
lowers an
employer’s cost in
the first year of
engagement.”
Paul Grundy, MD,
MPH, FACPM,
FACOEM
IBM's Global Director
of Healthcare
Transformation

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Employer Advantage Overview