Human Capital Management, Total Well-Being
The Importance of Healthcare Data Analytics
As an employer, do you understand why your healthcare costs are rising? Is your consultant explaining the utilization specific to your population? If the answer is no, I suggest you start seeking a new consultant.
First, you should understand how you compare to other industries of your specific size and in your specific region regarding plan design, number of plan options, and contributions. Are you contributing too much or too little? Are your plans too rich or too conservative? How do your demographics differ from regional benchmarks? Knowing this information can help you design your healthcare program in line with the market.
Next, you need to understand how your overall healthcare plan is performing. Have your medical and prescription claims been on the rise or have they declined? Is your renewal increase fair and reasonable? Your consultant should have the tools and knowledge necessary to explain the ‘why is this happening’ and provide trusted advice on what funding mechanism suits your needs and what cost containment strategies are necessary to implement.
Finally, it is imperative for employers to start taking action. According to the 2013-2015 Kaiser Family Foundation annual surveys, approximately 50% of employers with 200 or more employees are offering health risk assessments and biometric screenings to identify risk factors and create opportunities for prevention. The surveys also reported that 68% of large employers are offering disease management programs to improve health and reduce costs of employees with chronic conditions.
In summary, analytics are important to understand how your healthcare plan is performing and what action steps are necessary to help you control cost in the future. Need help getting started, contact Exude today.
