Prepare for health care reform now before it’s too late

Business managers should examine their health care benefits now rather than wait and see how federal legislation pans out, according to a consultant who recently spoke to the Human Resources Association of Central Missouri.

By the time Congress acts on proposed changes to the health care system, it might be too late to avoid significant cost increases, said Janet Lowe, a principal at Mercer, a human resources consulting company in St. Louis.

When discussing health care reforms with clients, Lowe advises them to establish fiscally responsible plans.

“Once they look at their plans, it’s going to be more important than ever to control the costs,” Lowe said.

Lowe spoke on preparing for the impact of health care reform during the Oct. 13 meeting of HRA of Central Missouri at William Woods University’s Columbia campus. Lowe’s projects at Mercer include development of short- and long-term benefits strategies and development of consumerism and employee cost-sharing strategies.

To cut their costs, Lowe is encouraging companies to consider at least three options: consumerism, a more effective pharmacy management program and tighter quality-driven networks. When it comes to consumerism, companies should have programs, such as wellness programs, that keep employees engaged in their health management. Consumer-directed health plans shift more of the responsibility to the employees to seek health care. To have a more effective pharmacy management program, companies should implement programs that are more outcome-based in which the pharmacy and the drugs can truly improve the health of the individual, Lowe said. Tighter quality-driven networks focus on the most effective providers; many insurance carriers do evaluations to determine which providers have the highest quality ratings.

Immediacy is key when it comes to preparing for the health care reform, according to Lowe.

“We are absolutely telling employers that they can’t wait for health care reform, and they need to take action now to be better prepared,” Lowe said.

Employers face a potential surcharge if their benefits plans cost too much, and according to Lowe’s data, 25 percent of employers will be subject to the surcharge by 2013, which is why she is encouraging them to examine their plans immediately. Companies need to manager their costs in the present in order to avoid future surprises.

“They need to continue to manage their costs in the short term, and it’s more important than ever,” Lowe said.