Don't Follow the Herd: Using Data Analysis Tools to Create a Customized Cost Control Approach

With the lastest round of increasing health care costs, employers seem to be embracing more active cost management approaches and concluding that they do have direct control over their medical cost. The proper way to control medical cost is to creat a customized solution. This mean, on a regular bas...

Full description

Saved in:
Bibliographic Details
Published inEmployee Benefit Plan Review Vol. 59; no. 12; p. 10
Main Authors Gilles, Paul, Oliver, Ginny, Bilodeau, Marc
Format Trade Publication Article
LanguageEnglish
Published New York Aspen Publishers, Inc 01.06.2005
Subjects
Competition
Cost control
Decision making
Employee benefits
Employees
Employers
Health insurance
Human resource management
Online AccessGet full text

Cover

More Information
Summary:With the lastest round of increasing health care costs, employers seem to be embracing more active cost management approaches and concluding that they do have direct control over their medical cost. The proper way to control medical cost is to creat a customized solution. This mean, on a regular basis, companies must gather and analyze data or have financial reporting just like busiensses do in other areas. Every plan sponsor needs 3 general types of data: On-going monthly and quarterly reporting, 2. annual analysis of cost drivers, and 3 ad-hoc analysis. There are 2 tools that most employers would benefit from in their efforts to manage their medical cost: 1. a data management tool or a data aggregator, and 2. an illness burden or predictive modeling tool.
ISSN:0013-6808