Value-based benefit design using the 4 Ps 

People are fed up with their health insurance benefits, and for good reason. It is estimated that 1 in 4 dollars spent on health care is not making us any healthier, amounting to nearly $1 trillion in waste annually. The trend of shifting some of that cost to the patient in the form of rising deductibles and other out of pocket spending may help limit plan spending increases, but also leads many to avoid necessary care. This creates intense pressure on employers to offer benefits that deliver on the promise of clinical value — that is, better health at lower costs. 

I’ve learned that the best approach to value integrates all aspects of an employee health benefits plan in one streamlined experience using a flexible technology and service platform designed to meet an organization’s unique needs. In this article, I propose a conceptual framework for better value built on what I call the “Four Ps” of value-based benefits, with plan administration and navigation capabilities that are: predictive, precise, proven, and pleasing.

I have found these four components to be the ingredients to success when architecting a benefits design that‌ works for and with people. Let’s take a closer look at these four key areas that show how benefits advisors and employers can create a healthcare benefits suite that is personal and valuable to their people.