Benefits of program design and cost containment

Experts say Minnesota has been ahead of the curve in adopting payment models that are designed to reward quality of care over quantity of services provided, and addressing social issues, such as lack of housing, that contribute to poor health. And Minnesota is better than most states at controlling costs — an area where Massachusetts struggles. The Colorado Commission on Affordable Health Care was created by Senate Bill , sponsored by Senator Irene Aguilar, and is tasked with looking at the growing healthcare costs in Colorado for the next three years.

Through its analysis of a wide variety of healthcare costs, the commission must make recommendations to the legislature. The commission is compiled of 12 commissioners and 5 non-voting members, all with a range of healthcare backgrounds. The first convening on August 22, involved logistics for the future, such as deciding when to meet, who will organize the group, how to hire staff, when to hold meetings, how to launch a website, and how much money to spend.

Bill Lindsay was elected interim chair of the commission. The next meeting of the Cost Commission is set for Sept. The Massachusetts legislature passed a bill, signed into law August 6, , to limit the growth of health care costs.

The "Act improving the quality of health care and reducing costs through increased transparency, efficiency and innovation," S. For five years after that, spending would slow further, to half a percentage point below the growth of the economy, although leaders would have the power under certain circumstances to soften that target.

The bill also includes provisions to encourage a shift to paying hospitals and doctors for overall patient care rather than for every test and treatment. Moore, a lead sponsor said. Dollars spent on health care are dollars not available for other uses. Understanding the rate at which costs are growing—and the growth rate the economy can bear—is important for the financial health of any state. It examines the questions these states had to ask in determining total cost of care measurement—where data comes from, what to count, how to count—and how they answered them.

The pioneering strategies to limit the rate of health care cost growth—and to measure each state's performance—merit the attention of other states, policymakers, and observers. There are ways to lower costs. Is there the political will.? Coupling our expertise in benefits management with the highest level of customer service, we design, implement and provide ongoing service of employee benefits and retirement programs.

About Us Testimonials. If a current benefits plan exists, the employer also may conduct a utilization review of each plan to determine actual employee use.

Knowing the frequency a particular benefit is used and to what extent may help the employer determine cost-saving design practices. For insurance plans such as a medical plan, the carrier will often provide a utilization review for the employer. Analyze the existing workforce demographics to assist in determining the needs of various categories of employees. Younger employees may value paid time off more, while older employees may place a higher value on retirement income plans.

Compile the needs assessment results and compare against any existing benefits and against available benefits to prioritize which benefits will be most helpful in achieving the objectives of the benefits program. Once the needs assessment and gap analysis are complete, the employer will need to formulate the new benefits plan design. Using the data collected from all resources in Step 2, the employer can begin to formulate benefits offerings in order of priority. Then the employer will determine the cost of providing the prioritized benefits and evaluate against the benefits budget.

This step is complex and may take many factors into consideration. Can changes be made to current plan design to induce cost savings? Can benefits that are underutilized or not valued by employees be eliminated? What are the administration costs for the benefits? What cost containment features can be put in place?

Will employees have to contribute and how much? Are there resources to administer in house, or will a third-party administrator and broker be necessary for certain plans? These are among the complex evaluations an employer will make in determining whether to add, change or eliminate benefits offerings.

The communication strategy is a critical component to the benefits planning and management. Some resources and samples are available to assist employers see, How to Develop an Effective Benefits Communication Strategy.

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