Some Thoughts on "Consumerism"

As traditional cost "fixes" become increasingly ineffective, many employers are turning to consumer-driven or -directed plans, coupled with individual accounts.  Although this approach is intended to reduce costs, most employers have a difficult time setting up the plan for maximum advantage, gaining employee acceptance (and enrollment), and achieving meaningful savings.

The three most common employer mistakes are:

1. Misunderstanding – Often, Consumer-Driven Health Care (CDHC) is sold as merely an "alternate way to deliver health care."  It's not.  CDHC is a strategy, not a product.  Though a high-deductible plan is required if offering Health Savings Accounts, there are actually many other ways to take advantage of the benefits of employee "consumerism."  
    
2. Lack of commitment to change – CDHC is best understood as a means to stimulate employee engagement and stakeholding.  The approach works only if you can successfully transform employees from passive benefit recipients into active, engaged "consumers," with a tangible financial "stake" in how benefit dollars are spent.  To achieve this end, employers must drive significant changes in employee understanding, expectations, and behavior.  For this reason, CDHC must be viewed not as introduction of a new "benefit option," but as implementation of a change in organizational culture.    
    
3. Failure to invest – Even the most complex CDHC plan can't produce sustainable savings unless a range of ancillary pieces are in place.  Without such things as detailed cost and outcome data, health management resources, treatment incentives, and extensive employee communication, CDHC is a waste of time, money, and employee goodwill.

Strategic Planning Associates has experience on both the provider and employer sides of CDHC.  With our proprietary approach, we're the only firm that can target solutions to achieve the participation you need – and drive the financial results that you want.