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Is a bigger investment in workers' health the key to savings?

Christian Schappel
by Christian Schappel
January 14, 2011
2 minute read
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Most employers appear to have bought into the idea that getting workers to exercise, quit smoking and eat right will lower future healthcare costs. The next step? Getting employees to adhere to their medication/treatment regimens.
Some of today’s most forward-thinking employers are resisting the urge to slash benefits in an attempt to save money and instead are doing something pretty daring: eliminating co-pays on prescription drugs and preventive treatments.
The thinking is that investing more in employees long-term health now by lowering employees’ out-of-pocket costs will improve workers’ adherence to health maintenance schedules and stave off future medical problems.
It’s a trend that’s catching on. Employers that waived or reduced co-pays for maintenance drugs for chronic conditions increased from 11% to 18% from 2007 to 2009, according to a Mercer survey of large employers.
The reason: Researchers are now saying that adherence to medication regimens improves as out-of-pocket costs are eliminated.
Pitney Bowes is one of the companies that has bought into the idea of reducing/eliminating co-pays. As a result, the company has experienced six years of declining medical costs, according to a recent report from CFO.com.
Keeping people on schedule
Other organizations believe that to be effective, you’ve got to put a tough-love spin on this approach.
For example, the Midwest Business Group on Health, a consortium that purchases health benefits for 100 large employers, eliminates co-pays for treatments for diabetics. But to keep that incentive, employees must see a health coach. Those who fail to do so, must resume paying co-pays.
The group believes this approach is helping to prevent everything from minor medical problems to extended hospital stays.
Do you think if your company reduced or eliminated co-pays, it would increase your employees’ adherence to their medication schedules — and generate long-term cost savings? Share your opinions in the Comments Box below.
Source: “Health Care: Spend More, Save More,” Kimberly Blanton, CFO.com

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