Cost control strategies are necessary to preserve the quality and competitiveness of your employee benefit program
We source innovative solutions and analyze cost containment programs to determine their effectiveness for each unique client.
At Davidson, we advise our clients on creating and developing a competitive benefit program AND how to maintain it. We analyze the effectiveness of mainstream solutions while seeking innovative and emerging solutions. The complexity of managing risk gets traction when access to utilization data is available. Targeting specific cost drivers, resolving gaps in care, network of quality providers and facilties and progressive drug formularies and utilization management result in better outcomes for patients and plan costs.
While improving costs is important, more than often it involves cost shifting to plan members. We don’t believe that member’s need to be adversely impacted in order to reduce costs. In fact, we believe the opposite. We believe cost follows quality. If we improve outcomes, improved costs will follow. We are also committed to measuring results and holding ourselves accountable for those results.
There are many examples we’ve implemented to improve outcomes and reduce costs. Our focus to improve outcomes also includes improving the member’s healthcare experience. Improving the experience directly leads to improved plan appreciation which, although indirectly, reduces turnover and improves the employer’s costs.
Mainstream Strategies:
- Reduce benefits/cost shifting
- High deductible health plan design with or without HSA
- Defined contribution
- Increase employee contributions
- Change insurer
- Terminate plans or transition to employee paid/voluntary
- Network savings, access, ACO
- Telehealth
- Rx step therapy, limited formulary and limited network
- Integrated chronic condition management programs
- Cost estimator tools
- Predictive modeling
- Vendor management and accuracy
- Claims audit
- Eligibility audit
Innovative Strategies:
- Worker's medicaid
- Dialysis, diabetes and other chronic condition carve-outs
- Enhanced employee education, on-demand care consultation and advocacy
- Second opinion services
- Drug manufacturer coupon program
- Coalitions, refunding arrangements and leveraged pricing programs
- Enhanced data analytics with intervention services
- Reference based pricing
- Incentive based network steerage
- Telemental health and mental health first aid
- Onsite financial health education
- Onsite physicals with network provider
- Individual HRA
