Employers as purchasers of health benefits greatly influence the availability of health and medical services through employer-sponsored health plans. During the late 1990s, employers have embraced several actions that reflect their strategic management of the health benefits function.
This paper presents an analytic framework to enhance the understanding of strategies adopted by employers. It is based on findings from two studies conducted in 1998 and 1999 that included over 40 small and large employers who have their corporate office locations in two markets of a large mid-Atlantic state. In each study, a sample of employers was identified and the person responsible for health benefits was personally interviewed using a structured questionnaire. The framework identifies major strategies that are being adopted, their specific management domain, and as well as illustrations of how these strategies are being carried out in selection, monitoring and evaluation of health plans. Strategies include: influencing the provider network of plans; specifying and assessing plan performance; shifting greater responsibility to employees for management of benefits function; and examining plan quality. Some of these strategies reflect practices common to the process of managing other services; other strategies reflect aspects of managing that are unique to health benefits. In addition, variation in strategy adoption by firms is examined in light of organizational and market characteristics.
Implications for future health benefits management are discussed given rising health benefits cost experienced by employers in recent years.
Learning Objectives: At the conclusion of this session, the participant will be able to: 1) Identify current strategies used by employers to manage health benefits. 2) Determine specific actions being taken by employers that reflect these strategies. 3) Recognize and discuss implications for future management of health benefits
Keywords: Managed Care, Management
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.