Lower Healthcare Costs Begin with YOU

Strategies for individuals and employers to regain control of healthcare costs

The nation is quickly learning that healthcare reform will not be the answer for lower healthcare costs.  As the new legislation unfolds, it is likely that the costs will increase for healthcare along with everything supporting that industry.

Basic economics dictate that if demand for healthcare increases faster than supply of qualified healthcare providers, costs will increase.  Premiums will also increase for individuals and employers as more individuals are added to the receiving side of healthcare without paying into the system.  According to data released by the National Center for Health Statistics in early 2010, nearly 32 million Americans had been uninsured for more than a year as of the 2008 National Health Interview Survey.  As of this writing, the question remains: how many of these uninsured citizens will actually pay into the system to afford the increased demand?

Perhaps the biggest reason healthcare reform will not lower costs is that the legislation fails to address the necessity of self-responsibility and accountability.  There are few incentives provided to inspire individuals to take care of themselves and their health in the first place.  It appears that individuals can continue to do what they want to and count on someone else fixing their problems for them, if the individual allows them to do so.

A counter action, however, would make sense.  Lower costs by lowering demand through improved health.  This is where the power of the individual can prevail and one person can make a big difference.  True health improvements begin with the individuals, those of whom have the power to lower healthcare costs by taking care of themselves first.

Supply and Demand:  Sickness Raises the Costs

Put simply, lifestyle choices determine if a person maintains or regains good health.  For example, it is up to the individual to consistently monitor and manage high blood pressure so it won’t have a negative effect personally or financially.  Uncontrolled blood pressure can result in the need for dialysis treatments.  Does any individual want to spend three days a week, six hours a day, sitting for medicinal purposes?  No.  Adding to this burden, the cost for dialysis currently stands at $30,000 to $50,000 per month, per person.

Controlling high blood pressure, and other chronic illnesses such as diabetes, can prevent the inconvenience and the expense of renal failure.  For those carelessly thinking they don’t have to worry about the expense because the employer or insurance is paying for it – think again.  Healthcare costs impact the cost of premiums. The higher the costs, the more premiums increase.  As premiums increase, cost sharing increases.  The individual ends up paying more for premiums because of this.  One step further, as more money is allocated to premiums, the less there is in the budget for other items such as raises, bonuses, educational benefits, and retirement funds.  Jobs are, consequently, also in jeopardy because of lack of resources.  An entity (including the government) has only so much in revenue, and as one expense item drains the budget, other expense items must be sacrificed.

Purchasing Power: Individuals Control Costs

Employees who are smart healthcare consumers can help save money for themselves, for their employers, and, ultimately, for the nation.  Those who are healthcare literate know that generic drug options reduce costs.  They have the sense to use a 24/7 nurse-line instead of an emergency room for their suddenly sick child.  They also understand the importance of examining medical bills for accuracy just as they would bills at a restaurant or auto shop.

In addition to being cost savvy, healthcare consumers have the power to reduce costs through the act of improving their health.  There are simple actions an individual could take to regain control of healthcare costs through wellness:

1. Look at where you are now and ask yourself if this is your very best.  What would make life better for you?  What would better look like to you?  What can you do to make it better?
2. Write down your vision of a better life for yourself.  For example, better health strategies can involve some sort of physical activity, better nutrition, enough sleep, and staying connected in the present moment versus worrying about moments that may not come.
3. Take an inventory of your personal and professional life.  Can this be better and how? Soul searching questions about your lifestyle could determine what you can do to preserve or maintain your health.
4. Define very specifically what all the components of your life mean to you and why they are important to you.  Do you want to be around a long time?  Do you need to be around to take care of family members?  What are your reasons for living longer than diseases will allow you?
5. Once you know what you want and why, seek partnerships and ask others to help you along your journey.  Determine what support you need and want.  Decide if you are honestly willing to ask for it.  You must clearly express your needs to solicit the type of help you need from those you have identified to help you.
6. In addition to family and friends, consult your physician for guidance.  Statistics show that physicians have an average of six minutes per patient; therefore, you should go in prepared with your research and a list of specific questions.  Consider the doctor your partner in good health.
7. Once you are on the right track, make it a commitment.  Annual screenings are a must, but also be sure to monitor and keep records for yourself throughout the year.  You know “you” better than anyone.

Marginal Cost: Employers Evoke Change

Healthcare continues with the employer.  The employer has the influence to empower employees to achieve better health.  Employers can provide opportunities at work to help their employees make better choices.  As a result, the employer will reap the benefits of having healthier, more productive employees.  Loyalty and morale will also simultaneously improve.

By investing in an organization’s greatest asset (employees), employers will save money short term and long term because healthy employees can do more, can be faster, can be engaged in their work, can think clearly, and can be energetic and enthused individuals.  This is the company image every employer wants customers to see.

Starting from the top, employers can take responsibility in taking care of employees through wellness programming, strategic benefits planning, and making healthcare education a part of the company culture.  The opportunities are endless with what employers can do to enhance a team’s efforts.  While it’s the individuals’ ultimate responsibility, the employer can be a supporting partner to decrease the demand and to help lower costs at the individual level.

About The Author

Connie Gee, Vice President and Wellness Strategist

Med-Vision, LLC

Web Site: www.med-vision.com

Email: connie.gee@med-vision.com

Phone: 813-205-1577

Connie Gee is Vice President and Wellness Strategist of Med-Vision, LLC, which uses data analytics to customize action plans that improve quality of care and decrease healthcare costs.  Founded in 2005 and based in Tampa, FL, Med-Vision specifically caters to the needs of self-funded employer plan sponsors and currently impacts more than 75,000 health plan members across the United States.  Med-Vision has helped corporations, healthcare facilities, municipalities, and school districts to reduce risks, reverse trends, and reduce costs. Gee, the former Wellness Leader for Tampa General Hospital, has over 20 years experience working in health promotions, disease management, workforce utilization, wellness programming, and leadership seminars.

Gee’s full profile is available at http://www.linktoexpert.com/conniegee, which includes wellness speaking topics and full biography.

Self-funded employers interested in Med-Vision’s health planning, data analytics, risk management, disease management, or wellness consulting services may visit www.med-vision.com or contact Connie Gee directly at 813-205-1577 or connie.gee@med-vision.com.