CareFirst BlueCross BlueShield (CareFirst) recently hosted a discussion, Leveraging Innovation and Flexibility for a Healthier Workforce, highlighting employers who offer creative health benefit solutions to their workforce. The event included opening comments by Reggie White, Senior Vice President of Commercial Markets & CareFirst Administrators, and was moderated by David Schwartz, Vice President of Public Policy & Federal Affairs. Panelists included:
- Marcy Buckner, Vice President, Employer Health Policy & Advocacy, AHIP
- Russell DuBose, Vice President of Human Resources, Phifer
- Shane Murr, Director, Associate Wellbeing, MedStar Health
During the conversation, panelists discussed how they have successfully implemented wellbeing programs and other innovative solutions to help control costs and meet the unique needs of their employees and their families.
When considering new employment, the health benefits package is usually top of mind as many of us receive our health coverage through our employer. In fact, 180 million Americans receive their health coverage through their or a relative’s employer. In recognition of the 50th anniversary of the Employee Retirement Income Security Act of 1974 (ERISA), CareFirst convened the panel to showcase the types of innovative benefits employers can design for their workforce using the flexibility ERISA provides, regardless of where their employees reside.
We invite you to listen to the discussion and hear firsthand from a group that deeply understands the intricacies of employer health benefits, and their critical impact on the health and wellbeing of so many Americans. A few key themes that emerged throughout the discussion are below:
Benefits are Most Effective and Meaningful When They are Customized to Employees’ Needs and Access is Prioritized
Mr. DuBose highlighted how his company analyzes aggregate utilization data and employee survey data to gain a nuanced picture of what their employees want and how they actually use their current benefits. This approach enables Phifer, a manufacturer with 2,700 employees plus their families on their health plan who reside in Alabama, California and Pennsylvania, to focus their investments on employee benefits and plan design to truly reflect the kind of experience their plan members want. Over the last six years, Phifer has been able to implement a “value-based fixed cost approach” to lower out-of-pocket costs and eliminate barriers to accessing care. For Phifer, this method has been overwhelmingly successful as they have connected their workforce and their families to providers and services in a more tailored, comprehensive way that increases the quality of care their employees receive, while keeping net health costs flat for the past five years!
Implementing Innovative Employee Benefits is Crucial to Addressing Mental Health Needs and Social Drivers of Health
MedStar Health, a 10-hospital health system based in the Washington-Baltimore area, ensures their health plan design is centered around providing behavioral health and wellness benefits focused on the whole person. Mr. Murr shared how MedStar is committed to helping its 30,000 associates and their families navigate their health and wellness needs. This support includes helping associates find routine childcare, connect with concierge programs, crisis intervention resources, and access to a mental health assessment tool that connects high-risk individuals to personal support services that allows them to remain anonymous throughout the entire process. Additionally, MedStar has a platform for associates to self-report their mental well-being level for the day, which identifies associates who might need extra support or are unable to work—enabling MedStar to unequivocally prioritize both staff and patient safety as an employer and provider organization.
The Centers for Disease Control and Prevention considers economic stability a major social driver (or determinant) of health, and it is clear Phifer agrees. For several years, Phifer has focused on increasing the net disposable income of their workforce through purposeful plan design. During the webinar, Mr. DuBose described how Phifer uses the savings generated from their benefit designs to fund initiatives that support their employees and their families. Through their healthcare dividend program, Phifer has reinvested the savings from their plan design to provide tuition scholarships and free summer day care for the children of their employees, among other benefits. Mr. DuBose also highlighted this program and its impacts for factory workers in a recent NPR article.
Striking the Right Balance Between Employee Benefits, Talent Retention, and Healthcare Affordability
Mr. DuBose put it well, “retention begins with benefits.” This sentiment reflects the major challenge employers face—balancing the need to offer attractive, comprehensive health plans to recruit top talent, while managing the rising costs of healthcare. As Ms. Buckner noted, employers recognize quality health coverage is an important benefit employees want. She emphasized the pressure employers feel to offer competitive benefits, including robust health coverage options, and further drove that point home by sharing AHIP’s employer-provided coverage survey that found “a vast majority of employees cite benefits as a reason they went to their current job and a reason why they are staying.” Ms. Buckner also acknowledged the important ERISA protections that allow employers to offer plan designs with competitive and comparable benefits regardless of where an employee lives.
As the largest source of health coverage for non-elderly Americans, CareFirst believes it is important for policymakers to continue to protect the ability for companies to offer customized employer-provided health coverage to best meet the needs of their workforce. A majority of consumers are satisfied with the coverage they receive through their employers, which has been true over time. The innovative approaches highlighted during our recent event make clear why that continues to be the case.