Looking for the magic solution to rising health-coverage costs? We don’t have it. But we do have three examples of real companies that took steps that worked.
It seems everyone – including presidential candidates — is looking for the “big fix” to rising health-coverage costs. Maybe they should be taking a look at the little fixes that work, such as:
A Northeast pharmaceuticals maker paid every employee $500 to undergo health screening. The employees had to pay for the screening out of the $500 and got to keep the leftover.
Results: Participation in screenings went up from 28% to 90%.
Even better, (a) the employer saw a per-employee drop off $225 in health costs, even after paying out the $500, and (b) the company’s absentee rate dropped as a result of early diagnosis of chronic condition such as diabetes and heart disease.
A Wisconsin company that makes leather seats took the big step of self-insuring, but that’s not all. The company (a) developed a health-education program that teaches employees to spend wisely, and (b) rewards employees with profit-sharing bonuses tied to meeting saving goals for health spending. Essentially, the company tells employees, “It’s your money. Spend it wisely, and you’ll get the benefit.”
Results: Annual per-employee coverage runs between $4,000 and $4,500 – pretty good for a small employer that lacks buying clout.
One Midwest school-supplies company with fewer than 200 employees instituted a twice-daily stretching program for employees involved in manual labor.
Results: Everyone chuckled at first about the program, until they saw a drastic drop in on-the-job injuries and costs associated with treating them. That, combined with a health-education program, led to the company’s keeping health-premium increases at under 3% for three years in a row
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