CORRECTING and REPLACING Business Health Care Group Reports Second-Year Savings
Number in sub-headline and in first graph, first sentence should read: 9% (sted 4.5%). First graph, third sentence add (restated to 14 percent in 2007).
The corrected release reads:
BUSINESS HEALTH CARE GROUP REPORTS SECOND-YEAR SAVINGS
Self-Funded Companies Beat Market Trend — See Cumulative 2-Year Decrease of 9% in Costs, $32 Million in Savings
Business Health Care Group (BHCG) self-funded member companies saw a 2-year aggregate decrease of 9 percent per health plan member when compared to 2005 base year costs. In 2007 the self-funded member companies experienced a 6.1 percent increase in medical costs (prior to benefit application) which is approximately 4 percent less than the Milwaukee market trend. This result, coupled with the 13.7 percent reduction reported for 2006 (restated to 14 percent in 2007) produces a cumulative 2-year savings of $32 million for the self-funded member companies. When taking into account southeast Wisconsin medical cost trend, the program produced even greater savings, totaling an estimated $103 million.
An independent third-party research firm analyzed the data from all of the BHCG’s 18 self-funded businesses – representing a total of approximately 55,000 health plan members. 2007 was the second full year for the health plan offering called Humana Preferred, created by Humana to support the BHCG’s goal of bringing southeast Wisconsin health care costs in line with the Midwest average.
“Manpower has tangibly seen the positive results in our bottom line since we’ve joined the BHCG,” said Jeffrey Joerres, chairman and chief executive officer of Manpower Inc. “Working in the employment services industry, we acutely understand the important work that the BHCG does in helping lower benefit costs for the employer, as well as helping our employees take control of their health care decisions.”
In 2007 self-funded companies accounted for approximately 65 percent of the 92,000 health plan members enrolled in plans linked to Humana Preferred and its high performance network of doctors, hospitals and other health care providers. Humana serves an additional 32,000 BHCG members in plans tied to other provider networks, primarily outside southeast Wisconsin.
In 2006 the BHCG reported southeast Wisconsin costs were 26 percent higher than the Midwest average and 2007 saw the gap close to 20 percent. “This positive report confirms that we are making progress in solving the dilemma of affordable health care and the BHCG is looking forward to continuing our efforts of bringing together employers, consumers and the medical community to support the business environment of the southeast Wisconsin region,” said Dianne Kiehl, BHCG executive director.
The average episode of care cost for Humana Preferred network providers is 15 percent less than non-Humana Preferred providers. “Improved provider pricing, physician efficiency, a focus on evidence-based medicine, and the use of Humana’s consumer transparency tools and the BHCG’s consumer education modules, all contributed to the cost reduction,” added Kiehl. Kiehl noted that benefit changes were not a factor since the comparison of costs was prior to benefit application.
While the current results reflect the experience of self-funded companies, fully insured BHCG member companies are also benefiting from Humana Preferred and its 11 percent premium advantage compared to Humana’s broader, regional PPO network. Humana Preferred includes 29 hospitals and approximately 4,000 physicians, representing about 85 percent of Humana’s regional PPO network.
In all, more than 675 employers are now participating in the BHCG, including some of the area’s largest and best-known corporations, as well as hundreds of small and mid-sized businesses. Products like Humana’s No Worry plan, which caps annual premium increases at 6 percent or lower over a three-year period, offer tangible ways for small and mid-sized firms to share in the BHCG’s success. In southeast Wisconsin, No Worry is available exclusively through the BHCG.
About the Business Health Care Group:
The Business Health Care Group is a membership organization of more than 675 employers and employer groups in the 11-county region of southeast Wisconsin. The BHCG and its members share the common goals of moving the health care market through innovative action and partnering for effective change. Visit www.businesshealthcaregroup.org to learn more.