Health insurance prices continue to rise for myriad reasons, including growing pharmaceutical drug costs, and, while there isn’t much companies can do for short-term relief, Ochsner Health System President and CEO Warner Thomas and Blue Cross and Blue Shield of Louisiana senior economist Michael Bertaut recommend companies encourage their employees to focus on wellness and preventive care to lower future costs.
Thomas and Bertaut, along with LaPorte CPAs and Business Advisors COO Patty Paz, discussed how employers could lower their health care costs, during a Business Report-hosted webinar titled, Why Do My Company’s Health Insurance Rates Keep Rising, and What Can I Do About It?
In 2019, employers and individuals kicked in $3.5 billion in health care premiums in Louisiana, according to Bertaut. Some $1.3 billion (37%) of that was spent on hospital care, 22% on physician services, 28% on pharmaceutical drugs and 13% on other costs. But the percentage share of pharmaceutical costs used to be much lower, he says.
Specifically, the three panelists agree that employers need to encourage their workers to establish a relationship with a primary care physician to manage their health care needs.
Establishing a PCP changes the dynamic of employees going to the doctor only when they are sick to, instead, fostering a relationship that focuses on preventive care and wellness. Having regular checkups to manage hypertension is cheaper than having a stroke or a heart attack.
“A primary care physician in your network is quarterbacking your care,” Thomas says. “Not just in pricing, but in utilization, preventive care and pharmaceutical costs.
Paz says she tries to educate her employees like consumers, encouraging them to ask their doctor and pharmacist questions, which could help manage costs in the long run.
“What we’re encouraging is those wellness visits,” Paz says. “And have people reaching out to employees to make sure they’re taking care of themselves and they’re keeping up with medications. We cover employees’ wellness checks 100%. We want to educate our people to talk to those doctors, encourage those relationships—they’re the ones that can help that employee to a healthier life.”
Evolving technologies can also be used to help lower costs. Insurance companies are using machine learning and artificial intelligence tools to try to predict who is most likely to get hospitalized, according to Bertaut.
Telemedicine has also been a game changer. This year, Ochsner has seen more than 270,000 telemedicine visits through its system.
“Telemedicine is here to stay,” Thomas says.
The panelists also agree there’s been a cry for more mental health services, especially since the pandemic.
“Our employee assistance program has seen an increase in requests regarding mental health,” Paz says. “Internally, we have an internal coaching program. We ask three questions: ‘How are you doing personally? How are you doing professionally? How can we help?’ Talk with them about resources, whether it be through insurance or assistance programs.”
Thomas says mental health services are Ochsner’s biggest demand outside of primary care.
“Being in the cone of six hurricanes … we’ve had a pretty rough year in Louisiana,” Thomas says. “Issues with mental health, that exacerbates all the other health issues you have.”
