Is there any way out of this mess?
Yes, instead of foisting a traditional top down solution, employers need to adopt a modernized bottom-up approach that enable healthcare providers to deliver better care with affordable costs. Consumer Directed Health Plan (CDHP) is an effective approach that puts employees in the driver seat and places entire control of cost and care into employees’ hands.
What is Consumer Directed Health Plan?
Consumer Directed Health Plans are high deductible health insurance plans paired with tax-exempted plans like HSA, HRA etc. These plans allow employees to pay wisely for their out-of-pocket medical expenses and significantly reducing premiums for employers.
Here are some ways employers can step towards a consumer directed healthcare system:
#Move Beyond One-Size-Fits-All Benefits Offerings:
Employers need to unfollow their traditional approach of providing a one-size-fits-all benefits package. They should provide employees with comprehensive benefit packages varying on the types of health care needs, premiums offered and coverage covered. Thus, employers are required to be more employee-centric to start a shift towards consumer directed healthcare system.
#Charge Only What It Actually Takes:
Make sure that the prices you pay for health benefits are aligned with the prices that employees pay. Studies show that many employees switched to lower cost plans when employer began subsidizing healthcare plans. Sometimes human resources department introduces several types of benefits plans and motivate employees to choose from them. Employers need to ensure complete price transparency in the benefits offered.
#Make Employees Aware of All Ins and Outs:
For employees to be better benefits decision makers, employers need to ensure that they are provided with all the relevant information about insurance providers, benefits broker, physicians, user ratings of insurers etc. Disclosure of information about the performance of insurers and providers enable employees to differentiate between quality and performance and they can effectively select benefits offerings best suited to their needs.
#Motivate Healthcare Providers to Develop New Offerings:
Generally, health insurance providers offer some standard of health care coverage plans for employees regardless of their individual needs. You can motivate your providers to develop new offerings and customizable plans to cater to every individual needs.
Related Article: Try These Smart Tips to Make Your Benefits Offerings Employee-Friendly!
Rounding It Off:
Individuals are highly aware about their health and they want to seek most value for the money they are investing. Consumer Directed Health Plan is a radical approach to give more control, more choice and more information to employees. Thus, making employees better benefits decision makers and enhancing productivity and quality of healthcare offerings for businesses with controlled costs.
