High-performing companies again beat low performers on costs by double-digit percentages informing policy debate with insights into what works in health care.
New data from Towers Perrin indicate that the business and social impacts of rising health care costs still loom large, but also that leading companies are successfully mitigating that threat through a variety of health-focused management techniques that are paying off in significant ways and point toward broader solutions to the cost crisis.
“The most striking result of our survey is the contrast between the high- and low-performing companies, said Dave Guilmette, Managing Director of the Towers Perrin Health and Welfare practice. “The high performers will pay, on average, 14% less in 2009 a differential that quickly adds up to millions of dollars in annual savings for companies and for their employees. While high-performing companies spend almost $1,500 less per employee overall, $350 of those savings, on average, are shared with employees in the form of lower contributions. This shared ‘health dividend’ also creates important workforce performance advantages, as reported by these organizations such as high employee engagement. Overall, the high performers are reaping a health dividend that can be a source of true competitive advantage and a model for the health care reform debate.”