About My Health Careers Internship MedBlogs Contact us
Medindia LOGIN REGISTER
Advertisement

Employers Strategize to Moderate Employee Health Insurance Costs

by Vanessa Jones on June 20, 2014 at 12:31 PM
Font : A-A+

 Employers Strategize to Moderate Employee Health Insurance Costs

Employers resort to the most popular method of health insurance for employees by shifting part of the cost for health insurance to the employee. Many of them are resorting to new health tactics to lessen the cost and take care of the health of the population in general. According to Aon Hewitt's soon-to-be-published Health Care Survey of more than 1,230 employers covering more than 10 million employees, 52% of employers said their current health strategy is focused on traditional trend mitigation approaches, such as employee cost shifting.

Around 21% would prefer the cost shifting approach after 3-5 years. After 5 years 60% of employers plan new tactics where employees are involved and they plan to "gate" them so that they earn better returns. The employees need to complete a "task" so that they can avail higher provident.

Advertisement

"Gating strategies are becoming an increasingly attractive incentive technique among employers as they look to improve the health of their employee populations," said Jim Winkler, chief innovation officer of Health & Benefits at Aon Hewitt. "For example, employers may offer a basic high-deductible plan to their entire workforce, but make a richer PPO option available to those employees who complete a health risk questionnaire or biometric screening."

Some 68% employers plan to adopt reference-based pricing—where employers set a pricing cap on benefits for certain medical services for which wide cost variation exists without any noticeable differentiation in quality. "Despite the long-term promises of innovative strategies, employers are still gravitating towards existing cost control tactics because they can see immediate benefits," added Winkler. "However, these traditional cost-sharing approaches will not be as effective in the future, and employers will need to adopt multiple strategies to improve the foundation of how benefits are delivered, including funding, design, clinical and provider system changes."
Advertisement

According to Aon Hewitt's survey, employers are thinking of using some plans to reduce health care costs in the next 3-5 years. "The fundamentals of health care still matter, but employers are increasingly realizing that traditional approaches to mitigate health care cost trend need to be advanced," said Tim Nimmer, chief health actuary for Aon Hewitt. "Over time, plan design strategies will evolve to be more requiring of employees, and individuals will be held more accountable for their health and for using health care. At the same time, we see that employers are increasingly committed to providing employees with decision support tools that provide greater transparency around the cost and quality of care, so that individuals can make more informed health decisions for them and their families."

References:

IFAwebnews

Hannah Punitha (IRDA Licence Number: 2710062)

Source: Medindia
Advertisement

Advertisement
News A-Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
News Category
What's New on Medindia
Health Benefits of Sea Buckthorn
Contraceptive Pills in Polycystic Ovary Syndrome (PCOS) Curtail Type 2 Diabetes Risk
Mushroom May Help Cut Down the Odds of Developing Depression
View all

Medindia Newsletters Subscribe to our Free Newsletters!
Terms & Conditions and Privacy Policy.

More News on:
Health Insurance Plan Third Party Administrators for Health Insurance Star Health and Allied Insurance Health Insurance Policies offered by Bajaj Allianz Insurance ICICI Lombard General Insurance Company Limited Health Insurance Health Insurance - Ombudsman Health Insurance - Basics New India Assurance Policies Cholamandalam Health Insurance Policies 

Recommended Reading
Health Insurance Plan
With a health insurance policy you and your family can rest assured!...
Health Insurance
This slideshow explains the concepts about healthcare insurance industry in India....
Quiz on Health Insurance
This Quiz is to test your knowledge on health insurance in the U.S, there is so much activity ......
Health Insurance Subsidies for Thousands Under Question for Eligibility
Many people would be disenchanted with health insurance if according to records they were not ......
Cholamandalam Health Insurance Policies
Cholamandalam MS General Insurance Company (Chola MS) a joint venture of Murugappa Group & Mitsui Su...
Health Insurance - Basics
Health insurance guarantees payments to a person in the event of sickness or injury.and works as pr...
Health Insurance - Ombudsman
Insurance Ombudsman institutions work for the purpose of quick disposal of the grievances of the ins...
Health Insurance Policies offered by Bajaj Allianz Insurance
Bajaj allianz health insurance policies protect you and your family in case you need expensive medic...
ICICI Lombard General Insurance Company Limited
Major health care plans from the ICICI Lombard include complete health insurance ihealth plan, perso...
New India Assurance Policies
The existing Mediclaim and Health Plus Medical expenses policies have been discontinued and Mediclai...
Star Health and Allied Insurance
Star Health & Allied Insurance offers a convenient insurance for the corporate people when they tra...
Third Party Administrators for Health Insurance
TPA is an IRDA approved healthcare service provider. TPA processes claims for policy holders on beha...

Disclaimer - All information and content on this site are for information and educational purposes only. The information should not be used for either diagnosis or treatment or both for any health related problem or disease. Always seek the advice of a qualified physician for medical diagnosis and treatment. Full Disclaimer

© All Rights Reserved 1997 - 2021

This site uses cookies to deliver our services. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use