It is obvious to most Americans (especially those of us in business) that healthcare expenditures are skyrocketing out of control. No one doubts that either the market will solve the issue OR the government will impose one on us. Managed care has failed from either a cost containment or quality of care perspective. Organizations have reached the point where the cost of offering medical insurance is almost as burdensome as government regulation. It’s time for some new thinking on healthcare and its influence on business and vice versa. “Corporate wellness” as an operational perspective rather than merely window dressing is one way to deal effectively with rising healthcare expenditures.
The Insurance Delimma
The first step in solving the concern is to realize that an employee’s health is their own responsibility. Expecting employers to provide unlimited medical insurance coverage is simply unrealistic and unreasonable. It’s time for employers (on a broad scale) to reconsider their role in offering medical insurance coverage. Instead of offering complete coverage for all staff members through group plans, employers must begin to change the burden of health coverage to those covered.
Here’s the approach. Provide catastrophic health care insurance as a group benefit to all staff members with a large enough deductible (say $5000 per employee) to make the expense affordable for the organization. Then, allow staff members to buy their own health care insurance policies (based on their own needs) and pay for them through payroll deduction with pre-tax earnings. There are numerous insurance employers that sell individual plans on this basis. Everybody wins. Employees can tailor their coverage to their own needs and circumstances using their own doctors. Organizations win by stopping the endless cycle of rising expenditures and ever-changing plans. And when individuals become responsible for the expense of their own insurance, they become more attentive to their own health. Besides, if an employee is interested in working for you ONLY because your organization offers great insurance benefits aren’t they telling you they’re going to cost you more money in the future?
Design a “Wellness Culture”
Our current “sickness culture” perpetuates the healthcare crisis and hastens the demise of market-based solutions. By sickness culture, I mean our focus on health issues instead of on having a healthy workplace and performance culture.
So, what would a “wellness culture” look like? First, rather than paid sick days, employees might be rewarded at year’s end with an attendance bonus. Staff Members would be reimbursed for successful completion of smoking cessation and weight-loss programs. Businesses would invest in corporate memberships at local health clubs so every employee can take part. Staff Members would be offered in-house wellness programs on a variety of problems ranging from ergonomics to stress management. Finally, employers would commit to hiring and retaining healthy employees. Simply put, healthy employees cost less and are more constructive than unhealthy ones. Applicants ought to be screened for health habits and practices that limit their productivity and increase the likelihood of future expense. While this may seem harsh, it rewards those employees whose personal lifestyle and habits ensure the best Return on Investment by the organization committing to hire, train and pay them.
Be open to “alternative and complementary” approaches
Studies published in primary medical care journals reveal that people who use “alternative and complementary” health modalities (including chiropractic, acupuncture, yoga and massage) are generally healthier, better educated, take fewer medications and miss fewer days from work than the average American. Since these people look for ways to stay healthy without prescription drugs and surgery, they end up being a net benefit in terms of attendance and productivity. Old prejudices in this area should be discarded in order for corporations to better productivity and improve profitability
Conclusion
Healthcare expenditures are increasing at a staggering pace. Managed care is an abysmal failure. Corporations are buckling under the pressure of offering health coverage to their staff members. American competitiveness in the market is sagging. These times call for extraordinary solutions. It’s time for American employers to consider some out-of-the-box solutions to the medical care crisis. Organization wellness is an approach that is timely, achievable and reasonable given the alternatives. All options should be considered while we still have a chance.