Offering competitive employee health benefits is a business essential, and a differentiator for attracting top talent, but as healthcare costs continue to rise, employers are challenged to offer affordable healthcare with extensive benefits. The traditional approach of reducing benefits and raising premiums is unsustainable as a long-term strategy, but without a good way to understand, rationalize, or reduce healthcare costs, these costs are unpredictable and unmanageable.
Health Catalyst decided to embrace self-insurance earlier than what would be typical for a company of its size to take the management of its healthcare costs and benefit design into its own hands, as well as gain access to the data it needed to manage its population health. The organization is leveraging data and analytics to help uncover insights into improvement opportunities and methods to drive behavior change in its team member population. The company designed an intelligent benefit plan based on the needs and preferences of its team member population and engaged team members in an ownership and accountability mindset. These efforts have resulted in:
- Successfully moved from a fully-insured/unmanaged organization to a self-insured/managed organization in less than five years.
- Reduced healthcare spending by more than 20 percent while increasing the benefits offered in significant ways.
- Maintained cost-effective, data-driven quality solutions that sustained the overall level of benefits offered to team members.
- Re-invested cost savings into enhancing employee benefits.