In FocusNews & Insight from Chelko Consulting
Specialty drug costs continue to vex most health plan sponsors. This article from NEJM Catalyst brings to light some of the key issues and opportunities for employers. It highlights the Cleveland Clinic’s recent effort to eliminate $8.5 million of annual waste associated with two commonly used cardiovascular drugs. Employers have got to like that result! read more…
A recent Wall Street Journal article entitled, “The 19 Questions to Ask Your Financial Adviser,” caught my eye. I was drawn to read Jason Zweig’s latest Intelligent Investor column as an investor and 401k plan sponsor, but it ended up resonating with me even more as a benefits consultant. read more…
I’m encouraging every plan sponsor I know to read “Why GE, Boeing, Lowe’s, and Walmart are Directly Buying Health Care for Employees.” The recent Harvard Business Review piece does a nice job explaining why and how a growing number of large employers are embracing the specialty centers of excellence model, as available through EdisonHealth. read more…
While the rapid evolution of modern medicine offers innovations in patient care, the resulting advancements are placing a fair amount of stress on our existing service delivery and payment models.
A prime example is orphan drugs — defined by the FDA as drugs and biologics for the safe and effective treatment, diagnosis or prevention of rare diseases/disorders that affect fewer than 200,000 people in the U.S., or that affect more than 200,000 persons but are not expected to recover the costs of developing and marketing a treatment drug. read more…
Knowing your organization’s number of annual claims per employee is an important piece in understanding its medical cost drivers.
When viewed in conjunction with cost per claim, you can quickly assess if an upward surge in medical claims per employee is due to increased utilization, rising cost of claims, or both. Once that’s determined, you can more effectively address the associated cost drivers.
Let us know if you would like to learn more about how to improve your score in this area. read more…
Prescription drugs can be difficult to manage in a plan, especially if you don’t have a good grasp of all the related metrics.
- Do you know what you’re spending on every member in a year?
- How do your Rx numbers compare to our database?
- Do you know what’s causing the changes in your drug costs year-to-year?
There are several strategies and tools employers can deploy to mitigate rising prescription drug costs. But first you need to track these numbers to get at the root cause.
Let us know if you would like to learn more about how to improve your score in this area.
The 5th Annual Employer Survey on Private Exchanges indicates exchanges appear to be gaining some traction with post-65 retiree groups, but aren’t driving change when it comes to active employees.
Conducted by the Chelko Consulting Group, in cooperation with the Worldwide Employee Benefits Network (WEB), the annual survey tracks employer attitudes pertaining to the viability of private exchanges as a healthcare coverage strategy for active and retired employee groups. read more…
Most employers benchmark their gross health plan cost on a per employee per year basis. The net amount employers pay (gross health plan costs minus employee payroll contributions) is also an important measure to track in support of sound plan management. As you can see, the amount can vary from one employer to another by thousands of dollars per employee.
Where do you fall in the range above? Knowing how that number matches up against your budget, benchmark, and last year should be a priority. It goes without saying that having answers to questions like this at your fingertips enables you to better manage your plan.
Let us know if you would like to learn more about answering this question, tracking your numbers, and better managing your plan.
Dear Mr. President:
First of all, congratulations on your stunning victory. You’ve re-written the playbook on how to get elected president. Your campaign strategy and tactics will be studied by scholars and politicians alike for years to come.
What you are now reading is an “open letter.” It’s addressed to you, but also intended to have a wider readership. We know you’re dealing with a number of pressing matters right now, but we want to make sure that you are aware of an important issue impacting the health of our people, and our nation’s finances. read more…
Specialty drugs can carry hefty price tags. Our data shows companies see an average specialty drug cost per script of over $5,000 — with that number more than doubling for some. This high per drug cost demonstrates how just a few specialty prescriptions can have a dramatic impact on your plan.
Fortunately, there are several strategies employers can deploy to mitigate rapidly increasing specialty drug costs.
How do your plan results compare? Let us know if you would like to learn more about how to improve your score in this area.
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