More than 20 cents of each revenue dollar for employers are going toward health care costs that are undermanaged, according to the nonprofit Center for Health Value Innovation's Health Value Accelerator, an online tool that creates a value-based benefit design centering on both engagement and accountability.
"We weren't surprised by the results that show not only an overall lack of engagement from employees, but a need for more attention from employers, as well," says Cyndy Nayer, CHVI president and CEO. "Employers are spending billions of dollars, often without holding their plans and providers accountable. The Accelerator is the first employer engagement tool that shows these disconnects."
According to the findings, employers offer tools for workplace engagement but are neglecting to track the use or outcomes, such as behavior change or risk reduction. Incentives are not guarantee for engagement or better outcomes, and in some cases, companies had better outcomes without incentives for prevention and wellness screenings.
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The findings also reveal that the majority of employers are unaware of how their employees manage their health or which programs work until there is a care claim, which is typically for emergency room visits.
"Vendor contracting has not evolved at the same rate as our benefits or even patient care," says Michael Jacobs, national clinical practice leader for Buck Consultants and co-author of the annual CHVI employer survey in value-based design. "In order to ensure we get what we pay for, we need to establish contracting for outcomes as the industry standard, which requires cooperation, transparency, accountability and value for all involved."
Based on this research, CHVI recommends that employers become more proactive and disciplined in their risk management approach for health benefits. Employers should make screening and follow-through their first step, guide employees through goal-setting and tracking of prescribed treatment, NS build accountability through outcomes-based contracting.
"It's important to treat employee benefits and health care expenses like other business practices," says Gregg Kamas, vice president, health risk management practice leader, IMA of Colorado, CHVI board director and advisor for the Accelerator. "Aligning responsibilities for all parts of the puzzle is a necessary step in taming health care and absence costs in a way that encourages good performance and good health."
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