The corporate healthcare market is looking a bit peaky, but with a bit of goodwill it is sustainable, writes Elliott Hurst.
Following care pathways
Evidence-based care pathways are also being introduced by a number of insurers for treatment of commonly occurring conditions such as musculoskeletal disorders,
and psychological problems such as stress, anxiety and depression – again using preferred providers.
For advisers, the big challenge remains to safeguard their clients’ interests in what is a rapidly changing employee health management landscape. They must clearly explain to clients the advantages of the new approaches and recognise the pitfalls of standing still – both for themselves and their clients.
Advisers should be knocking on an open door as most larger employers, particularly so those of a US parented background, now appreciate the importance of proactively managing the health risk inherent in an increasingly ageing workforce.
It is a trend that is well set to continue as an increasing number of the Baby Boomers continue working past what used to be their ‘normal’ retirement age.
Advisers should focus on ROI, especially for clients looking for short to mid-term returns. If the board wants to see annual savings, being able to demonstrate them and/or productivity gains arising from improved management of sickness absence and productivity will go some way toward satisfying them and maintaining their confidence in the long-term viability of their corporate healthcare strategies.
Other areas that employers might focus on may include employee participation levels or broader employee engagement scores, as they are related to staff perceptions of the support and benefits their employer provides to them.
Important conversations have to be had about open referral and the real meaning of choice when it comes to seeking private medical treatment.
Advisers can also help clients to understand which aspects of their healthcare benefits their people value most highly and devise communication programmes to ensure changes are understood and appreciated, and then robustly supported.
Fundamentally, it’s not about encouraging clients to pocket reductions in spending that may arise. If financial stability and the appetite are there, advisers will be well placed to make the business case for investing the returns in additional health and wellbeing services, to further boost employee engagement, performance and productivity.
Finally, looking to the future, we may be on the threshold of an important development in the UK corporate healthcare market – expansion to include the large number of typically ‘blue collar’ workers through the potential provision of targeted, lower-cost rehabilitation cover.
The proposed introduction of tax relief on employer funded private health interventions to support a more timely return to work , as announced in the Chancellor’s 2013 budget, may be a spur to its development.
By focusing benefit on treatment of conditions that stop staff from doing their normal jobs, it may be practicable for employers to play a bigger role in workforce wellbeing management by helping ill or injured rank-and-file employees back to health, and back to work.
Elliott Hurst is director, health consulting at AXA PPP healthcare
