Smart Ways to Reduce Health Care Costs and Save Big

 

5 Tips to Reduce Health Care Costs 

As the annual open enrollment season approaches, it is important for the 153 million Americans with employer-sponsored insurance1 to clearly understand their health insurance options. Despite widespread access to health information, a shocking 86% of adults with employer-sponsored health insurance plans lack sufficient health literacy to effectively navigate the health care system.2 

This can have a significant impact on employees’ ability to make informed health decisions, impacting public health and patient care and resulting in additional costs for both  employers and individuals. According to the Center for Health Policy Research at George Washington University, poor health literacy costs the U.S. economy approximately $238 billion annually and incurs approximately $4.8 billion  in administrative costs for employers.3,4 

Below are five strategies Pennsylvania employers  can use to improve health literacy, empower employees to make more informed health care decisions, and promote a healthier, more engaged workforce. 

Getting the most out of your wellness programs 

Workplace wellness initiatives can enhance health knowledge by motivating individuals to establish health targets and providing daily or one-off rewards for particular healthy actions. . These consumer engagement programs can also provide employees with the knowledge and tools to make more informed decisions about exercise, nutrition, sleep, and preventive care.  By embracing wellness programs, employers can foster a culture focused on health that inspires and educates employees to enhance their well-being. Inform your staff about your chosen care location 

Educating employees about choosing the right care facility for their needs can generate significant savings for both individuals and companies, improving health literacy and financial well-being in the workplace. When employees seek care, whether it be a consultation with a virtual care provider, an in-person visit with a family doctor, a trip to an urgent care center, or a visit to an emergency room, it can have a significant impact on costs. Emergency room  visits in particular can be up to 52 times more expensive than other medical alternatives. While emergency rooms are the first choice for serious or life-threatening health issues, for symptoms such as back pain or  muscle strain, urgent care may be the better treatment option, saving employees up to $872 and employers up to $1,666.5. 

Find a health insurance plan that promotes more affordable and equitable healthcare. 

New health insurance models are now available that offer a cheaper and easier experience for employers and employees. Some health care providers are eliminating deductibles and providing clear, up-front information about costs and coverage  before treatment begins. This increased pricing clarity can make health care more affordable for people of all ages and with a variety of common medical conditions and comorbidities. 

Promoting Employee Assistance Programs (EAPs) 

Understanding health matters and financial knowledge are intricately linked, and both are essential in our capacity to make educated choices regarding our health and financial stability. Many employee assistance programs provide financial resources and tools to address financial literacy gaps, such as: B. Tax planning, debt management, and savings advice. EAPs can also help treat behavioral health issues that may affect cognitive function and the ability to understand health information.

 Use Employee Resource Groups (ERGs) 

ERGs are based on the principles of diversity and inclusion and provide a safe space for employees to share common characteristics, demographics, or life experiences. They provide employees with an opportunity  to discuss barriers and solutions to health literacy challenges in an authentic and supportive environment. ERGs help pool collective insights to improve the effectiveness of disseminating health programs and EAPs across the organization. 

Promoting health literacy in the workplace is both a  corporate responsibility and a strategic investment in the overall well-being and productivity of  employees. By considering these strategies, employers can  improve employee health literacy, support better health outcomes, and reduce overall costs of care .Greg Carnevale is the Chief Medical Officer for UnitedHealthcare in Pennsylvania.

The views, beliefs, and perspectives articulated in the previous commentary belong to the author and do not necessarily represent the views, beliefs, or perspectives of Central Penn Business Journal.   or its editors. The author and CPBJ do not guarantee the accuracy or completeness of the information published herein.

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