The Need for a Self-Insured Medical Expense Reimbursement Plan with a Wellness Focus
- 44% of non-institutionalized Americans have chronic health conditions.
- These people account for 78% of health care costs in the United States.
- Obesity costs the United States economy approximately $117 billion per year.
- Health care costs can consume more than half of corporate profit.
- Health problems cost employees and employers in lost productivity.
- Health problems can cause disease, disability and death, resulting in high company costs.
According to “World at Work,” seven common health conditions are associated with economic losses. These seven health conditions cost more than $1 trillion, including lost time:
- Mental disorders
- Pulmonary conditions
- Heart disease
The Positive Effects of a Self-Insured Medical Expense Reimbursement Plan with a Wellness Focus:
- Healthcare costs are reduced 20% to 55%.
- Short-term sick leave is reduced 32%
- Productivity is increased 2% to 52%
- Morale is Higher
- Absenteeism rates are lower
- Productivity is higher.
- Employees tend to stay focused
- Turnover is reduced.
Employer Benefits from a Self-Insured Medical Expense Reimbursement Plan with a Wellness Focus
- Employer receives a net FICA benefit with potential savings in worker’s comp.
- Allows additional ancillary/supplemental benefits to employees without lowering their take home pay.
- The higher the participation among qualified employees, the more the employer will save in payroll taxes.
- Reduces the mitigation of risks related to future diseases and conditions on average of $1,400 per participant in client case studies.
- Expectations of a reduced claim value of 1%-2% of total spending.
Employee Benefits from a Self-Insured Medical Expense Reimbursement Plan with a Wellness Focus
- A SIMERP wellness program that provides both preventative and lifestyle health solutions with access to medical professionals without additional costs or co-pay.
- Provides additional voluntary/ancillary benefits without lowering his/her take home pay.
- A wellness dashboard that is customized to each individual’s needs with risk resolution guideline for existing conditions.
- A Road to Wellness program to promote behavior and lifestyle modifications for healthier living.
- Professional and video education to make lifestyle choices that improves health for such chronic conditions as diabetes and heart disease.
- Provides employees the opportunity to have an enhanced benefit package that provides financial resources to meet the increasing “out of pocket” medical expenses faced today.