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Most Businesses are in the Health Care Business

Employers pay about coverage, but their popu- Employers and employees have a health care cost savings, investing in pro-
20% of all health care larity has grown substan- shared interest in reducing health care grams that specifically help employees
expenses in the United tially to 20% on plans in costs and optimizing overall health and with chronic diseases better manage
States, and as of 2015, 2014, 24% of plans in wellness, and among the ways employers their conditions will bring the greatest
employer health care 2015, and 29% of plans in are leading this effort is by offering savings for employers and employees
expenditures were $638 2016. These consumer- health and wellness services. It remains alike.
Billion. 1 Most of those driven type plans, in questionable as to the extent that gener-
expenditures are for insur- 2016, cost on average alized wellness programs provide health Dr. Karen Meador, Managing Director in
ance premiums and the $5,762 for an individual care savings, but programs focused on BDO Consulting’s Healthcare Advisory
care provided under self- and $16,737 for a family managing chronic disease and reducing Practice, can be reached at
funded plans. In 2016, in 2016, a savings of 15% unnecessary utilization among the high- (214) 259-1477 or kmeador@bdo.com.
employer sponsored insur- and 12% in comparison to est health care utilizers have been shown
ance premiums were, on PPO individual and family to save money for employers and BDO Healthcare services local contacts:
average, $6,435 for the BY KAREN MEADOR, plans. 2 employees. Alfredo Cepero, Office Managing Partner
individual employee and MD, MBA These premiums do not This is not surprising since 50% of – (305) 420-8006/ acepero@bdo.com
$18,142 for a family, an include the employer con- people are responsible for only 2.8% of Angelo Pirozzi, Partner – (646) 520-2870
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increase of 3% over 2015. Employers tributions to employees’ health savings health care costs, while over 50% of / apirozzi@bdo.com
paid, on average, 82% of individual pre- accounts, but the savings in premiums health care expenditures are consumed Jeffrey Kramer, Partner – (954) 626-2921
miums and 71% of family premiums, can be used to fund these accounts. The by just 5% of the population. The top 1% / jkramer@bdo.com
while 83% of employers with 200 or result for employees, is that they have of utilizers consume 22.8% of the health
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more employees fully or partially self- lower premiums with a higher care costs. A ten year study of seven
funded their health care benefits pro- deductible, but some of the deductible is Fortune 100 employers demonstrated 1 www.cms.gov Table 05 National Health
gram. 2 offset by the health savings account con- that while general lifestyle management Expenditures by Type of Sponsor, 2015.
With employers bearing such signifi- tribution. programs cost more than the direct 2 http://kff.org/report-section/ehbs-2016-
cant financial responsibility for insur- For individuals and families who are health cost reduction that resulted, the summary-of-findings/ Kaiser/HRET Survey of
ance premiums and overall employee low utilizers of heath care services, the disease management programs brought Employer-Sponsored Health Benefits, 2016
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https://meps.ahrq.gov/data_files/publica-
health care costs, they have much to gain high deductible plans with health sav- savings with an impressive ROI of 3.8. 4 tions/st497/stat497.pdf Agency for Healthcare
by health care cost savings initiatives. ings accounts may result in accumula- There are likely additional less quan- Research and Quality Medical Expenditure
One notable shift driven by employers tion of health care funds that could be tifiable benefits for an employer offering Panel Survey 497
has been the significant growth in high used in future years when expenses lifestyle management programs (includ- 4 http://www.rand.org/content/dam/rand/pub
deductible consumer-driven insurance might be higher. Those who are high uti- ing gym memberships and dietary coach- s/research_briefs/RB9700/RB9744/RAND_RB97
plans combined with health savings lizers of health care, however, often find ing for all) such as enhanced employee 44.pdf Mattke S et al. Do workplace wellness
accounts. In 2006, these plans made up that these plans result in higher out of perceptions of the employer and greater programs save employers money? RAND
just 4% of employer health insurance pocket health care costs for them. loyalty, but for the most immediate Research Brief; 2014

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SFHEF Spotlight

SFHEF's Member

Spotlight June 2017

ASAD J. MINHAS,

RN, BSN, CCRN, FACHE

Asad (aka "A.J.") Minhas works for
Florida Medical Center in Broward County
as a Nurse Manager of CV Services. He has
15 years executive leadership experience
specializing in Cardiovascular Service Lines
and has been a Registered Nurse 29 years
specializing in Trauma, CV and Critical
Care. Mentored by a CEO who always
encouraged leadership and continuous
learning, A.J. is an enthusiastic ACHE
member.
“ACHE allows me to learn through multi-
ple venues such as e-learning, face to face,
networking events and so on,” states A.J.
He loves cycling and Triathlon. He complet-
ed the 140.6 Mile Full Distance (2.4 mile
swim, 112 mile bike, 26.2 mile run) in June Asad J. Minhas
2014.

South Florida Hospital News southfloridahospitalnews.com June 2017 7