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Employers Take Lead with Value-Based Benefit Designs

08/22/16

  07:51:00 pm, by MedBen5   , 246 words,  
Categories: Wellness, Health Plan Management, Cost savings, Bundled Payments, Research

Employers Take Lead with Value-Based Benefit Designs

doctor and patient

As more hospitals gravitate away from traditional fee-for-service to alternative payments methods, self-funded groups are making changes to their health care plans to capitalize on the potential savings. According to an analysis by the National Business Group on Health (NBGH), nearly half of employers have incorporated some type of value-based design in their plan.

In a recent article about alternative payment methods, MedBen Vice President of Compliance Caroline Fraker observed that "large employers in your communities are already experimenting with some form of bundled payment models." Likewise, employers have introduced various wellness-based measures that allow them to benefit from the lower costs these payment structures offer — among them, participation in a disease management program and adherence to chronic medications and screenings for chronic conditions.

The NBGH analysis found that, while the transition from fee-for-service medicine has been slow, many employers already have put in place a foundation for the future. Current value-based designs include offers to lower worker premiums and reduce out-of-pocket costs if they “take steps to manage chronic conditions, obtain higher quality care or more efficient care,” the analysis says.

Worksite wellness and disease management programs like MedBen WellLiving are a way to promote better health. But the cost savings from these programs matter, too... and as payment models change, the potential exists for even greater savings. As we continue to roll out our commercial bundled payment services, we'll help to instruct clients on plan design changes that will benefit employer and employee alike.

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