SHPS Survey Results On Best Benefits Practices For Self-Insured Employers Parallels Findings Reported In The New England Journal Of Medicine, UK

Main Category: Health Insurance / Medical Insurance
Article Date: 06 Mar 2008 - 2:00 PDT

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Results of the 2007 SHPS Health Practices Study released last year pointing to the importance of preventive care and direct employer involvement are comparable to the information reported by Susan Okie, MD in The New England Journal of Medicine (The Employer as Health Coach; 10/11/07). Dr. Okie states that large U.S. companies are trying to shift healthcare spending away from treatment and toward prevention by promoting wellness in the workforce, and advises that getting workers to adopt or maintain healthy behaviors can save money, reduce absenteeism and increase productivity.

"Both the SHPS survey and The New England Journal of Medicine article recognize that companies incur most of their employee healthcare costs from treatments for both catastrophic and chronic health problems that often result from poor health choices," says Chris Ryan, chief strategy and marketing officer for SHPS, a leading provider of health advocacy and health benefits solutions. "Clearly, there is growing consensus that companies with the lowest healthcare costs focus on optimizing employee health and managing clinical risk, rather than manipulating the health benefit. It is interesting that two different sources - one from academia, the other from within the health management industry - used markedly different methodologies, yet came to very similar conclusions."

Direct employer involvement goes a long way in accomplishing better preventive care. Dr. Okie points to several characteristics of effective employer health promotions, including annual risk assessments with feedback to increase employee awareness of their health status and advice for improving it. Some companies, she said, also offer incentives for participating in risk-reduction programs, provide free prevention services at work, cover most or all of the cost of medications for certain chronic diseases, and offer onsite health management programs, medical clinics, gyms, and pharmacies.

"Not all wellness programs are equally effective," says Ryan. "The employers who are most successful have clear, targeted health strategies, use health screenings to get objective data on the health of their employee population, and are not afraid to confront lifestyle risks directly."

Even after factoring out differences in location, workforce composition and industry, the SHPS study substantiates that traditional financially based cost management methods are simply not enough to battle rising healthcare costs. Optimal savings are realized when employers focus on managing clinical risk in addition to financial risk, and collaborate with their employees to establish better preventive care.

SHPS points to two key findings which are thematic in both sources:

- Preventive care and screenings are key to detecting problems or diseases before they escalate to catastrophic proportions. Employers can address these challenges and reduce the risk factors for disease by helping employees to choose healthier behaviors, while also adopting innovative ways to manage diseases when they do occur. According to the 2007 SHPS Health Practices Study, comprehensive, clinically based care management programs correlate with an average of 18.2 percent lower healthcare costs.

- Direct employer involvement goes a long way in promoting wellness. Dr. Okie points to several characteristics of effective employer health promotions, including programs that are tailored to the employee population, marketed creatively, and given the emphatic support of top management. The SHPS study found that excellence in benefits administration and communication has a direct correlation with 12.7 percent lower healthcare costs when integrated with the delivery of health programs.

"Both sources recognize the importance of addressing health issues before they become problematic - the pre-disease time period when effective wellness interventions can forestall or actually halt the onset of illness," concludes Ryan.

The 2007 SHPS Health Practices Study is available for download in PDF format at: http://www.shps.com/2007healthstudy. The New England Journal of Medicine article is available for download at http://www.nejm.org.

About SHPS

SHPS provides a broad range of innovative health management tools, resources and services that empower consumers to make wise healthcare decisions. With comprehensive services that transform consumer health behaviors, SHPS' integrated delivery system maximizes the value of consumers' and employers' healthcare dollars. Among its many clients, SHPS serves large and mid-sized employers, health insurance carriers, third party administrators, Medicaid and Medicare providers, and government agencies. The company employs registered nurses and health professionals, employee benefit specialists and IT experts in facilities across the United States.

http://www.shps.com