Healthcare costs are out of control and if you are an employer with tight margins then you know what I mean. Price Waterhouse Coopers (PWC) recently published a report outlining the trends they think will carry into 2020 and what employers need to do it about it. I'll save you some time and provide a quick synopsis in my own words:
Passive management is the reason why your healthcare plan costs keep going up and up. Passive management is Human Resources sitting with your broker going through a spreadsheet of insurance company options and picking the best of the worst. No control, no transparency, no option to achieve greater value and no chance for lower costs.
In contract there is active management. Active management is building a custom plan that helps employees find the highest quality care at the lowest cost. It’s about getting $15,000 knee replacements versus $30,000. It’s about making smart choices, full transparency, acting like a fiduciary and real strategy. It’s about CEOs and CFOs taking a leadership role and elevating healthcare purchasing to the status of other important business units like sales and marketing or R&D.
Healthcare costs are robbing employee paychecks but it doesn't have to be that way.