Feeds:
Posts
Comments

Archive for June, 2010

The recently released Towers Watson¬†2010 Health Care Cost Survey: Workforce Health 2010: New Deal, New Dividend finds that health care costs continue to climb faster than the CPI and that “the gross health expenditure will rise by an average of $636 per employee in 2010, pushing the average total cost above $10,000 for the first time in history.” ¬† Towers Watson notes that employees will pay an average of $400 more 2010 over 2009.

These figures are national averages. There is wide variation in performance among individual companies, however. The companies that best manage employee health costs and benefits are paying 18% less for their programs than the companies considered “lowest” performers. As Towers Watson points out, that means that a high performing company with 10,000 employees will pay $20,000,000 less annually than a low performing company.

Obviously, being a high performing company should be the goal. The following are what Towers Watson describes as the “top 10 factors that distinguish…the high performers in [the] survey.”

1. Understanding, supporting ad demonstrating the business value of workforce health

2. Ensuring that key success factors, such as leadership support and disciplined execution, are firmly in place

3. Establishing business-focused goals to ensure that health investments deliver a health dividend–and rigorously measuring the program’s success in producing targeted results

4. Building action plans to address gaps and opportunities

5. Engaging employees and promoting a culture of health

6. Creating a sense of shared responsibility and employee accountability for health and cost management

7. Designing programs that support transparency and create meaningful incentives for health behaviors and choices

8. Investing in a broad range of current and emerging health management approaches and technologies

9. Supporting employee needs for risk management and planning appropriately for health expenses in retirement

10. Building connectivity across health-related programs and vendors

To see a summary of the Report–including the list above–look here. To see the whole document, look here.

Read Full Post »