Medical cost control vs. employee productivity
Employers shouldn’t have to choose between the two. But many of the strategies used to attempt to combat the rapidly rising costs of healthcare in the U.S. can end up backfiring.
HDHPs may end up discouraging people from seeking care and as a result, worsening health outcomes in some chronic illnesses. Lost income due to absence or caregiving often ends up costing employees even more than their medical bills. Employers need to make sure the solutions they select aren’t worse than the problem they’re trying to fix.
In this DMEC @work article, Lincoln’s Scientific Advisor and Associate Vice President of Group Protection Product team up to discuss strategies employers use to contain healthcare costs, and examine which ones help, and which may have unintended negative consequences. As employees lose income, employers lose productivity – so it’s crucial for employers to know what which strategies are successful.
“Direct costs of healthcare for U.S. workers has increased more than 65% over the last decade, virtually erasing wage gains over the same period. Unfortunately, strategies to contain these costs can backfire.”
Read the article (PDF)