Benefits July 28, 2010

Health Research Group Promotes Employer Self Insurance

July 28, 2010 (PLANSPONSOR.com) – Employers should consider taking advantage of the additional claims data available and potential for additional employee wellness programs and self-insure their health care plans, a research group says.
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A news release from the Bethesda, Maryland-based Healthcare Performance Management Institute contends that self insuring employer benefit plans increases bottom-line savings and improves outcomes. The group put out the announcement about the release of its “Measure, Manage, Engage and Save: An Overview of How Healthcare Performance Management Works” report.

According to the news release, many employers have become dissatisfied with buying traditional insurance through third-party payers because of not getting enough information about the claims being paid or their employees’ health issues and what they can do to help deal with those problems.  The group argues that insurance providers severely limit how much — if any — information is shared with employers who pay their premiums, often citing privacy laws and other risk-management concerns.

“Thus, while paying third-party insurers to assume total responsibility for managing health claims — and risk — may seem convenient, it comes at a price: Employers sacrifice access to vital, aggregated information about employee health,” the group declared in the report. 

The group claims more employers are not only self insuring, they are adopting a workplace health coverage approach the group advocates called Healthcare Performance Management (HPM).  By collecting an array of information about workforce health trends, HPM helps employers determine what has the highest potential for future medical risks.

According to the announcement, HPM involves executives:

  • Measuring the key cost elements of health care spending;
  • Managing key aspects of health care spending and important health outcomes;
  • Engaging employees and family members in material health improvement initiatives; and 
  • Saving money through cost-avoidance, better workforce health and improved productivity.

To download the report, go to http://www.hpminstitute.org/node/154. A free registration is required.

The group describes itself as a research and education organization dedicated to promoting the use of business technology and management principles that deliver better and more cost-effective health care benefits for employers who cover their employees.

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