Large self-funded employers who step outside the box when it comes to health benefits are saving significant money on per-member, per-month claims costs — as much as 15 percent.
That's according to a multi-year analysis from health care concierge Accolade. The study finds the employers saving all the money are using high-touch, high-tech advocacy which proactively engages employees in their own care and encourages them toward better health care decisions. And not only does it save money, it significantly improves member satisfaction.
In a cost-savings study of large, self-funded employer customers using Accolade's engagement and influence model, representing close to 1 million employees, employers are saving from 3 percent to 5 percent in claim costs in the first year and up to 15 percent in the fifth year, representing a 3:1 return on investment. The results were validated by independent actuarial firm Milliman, Inc.
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At the same time, these employers are achieving 98 percent employee satisfaction and a two- to threefold increase in the use of existing benefits programs and tools, including point solutions.
In this service model, the entire member population is provided personalized proactive support, with individuals and family members being advised on health and benefits and sent to the health care resources that can best help them.
Early engagement can result in fewer emergency room visits, fewer hospital admissions, shorter inpatient stays and better utilization of preventive care and prescription drugs, and that can have a big impact on how much care costs. In three specific cases, large employers — one with an employee population of 55,000, one with 70,000 and the third with 38,000 — saved, respectively, $20 million over three years of service, $25 million over 4 years of service and $24.7 million over six years of service.
All three employers were able to control and come in well below their anticipated medical cost trend, the study finds, as well as materially outperform market trends. One customer was able to increase the take-home pay of employees while maintaining its current medical plan design.
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