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Transformation is Key to Greater Healthcare Value for Employers

ByJean Moore, Mercer|September 21, 2020

An event like HLTH VRTL shows off the depth and breadth of the healthcare market – an incredible amalgamation of players from all corners of the industry. Among those players are employers – market influencers who don’t always get the attention they deserve. If you were to play a word-association game and mention “healthcare,” it’s unlikely that anyone would respond with “employer;” yet employers are major players in healthcare, providing coverage to more than half the insured population in the United States. 

At Mercer, we recognize the crucial role employers play in transforming the healthcare marketplace to be a more rational system that benefits both employers and their employees. Transformation is desperately needed: Employers are paying reimbursement rates that are more than twice those of Medicare, on average. Such a system is simply not sustainable for plan sponsors.

Value must become central to the conversation. The simple equation, “Value equals quality divided by cost,” is key to transformation. When quality and cost are out of balance, it benefits no one. Employers can get greater value out of the healthcare system by demanding higher quality and putting downward pressure on costs. 

By reinventing with an eye on value, employers can create a future in which:

  • Quality, affordable healthcare is accessible to all members.
  • Benefits serve the diverse range of employees and their families, reflecting individual values.
  • Vendors are efficient and continuously seek improvement.
  • Dollars spent on healthcare deliver tangible value to the business.

With this vision in mind, Mercer has constructed an impressive track for HLTH VRTL, featuring four C-level speakers. 

On the topic of quality, employers rarely know the whole story when it comes to healthcare quality metrics. Clarify Health CEO Jean Drouin will talk about how that’s changing and opportunities for employers who are armed with better quality data. 

Cost is a key component of value, and the CEO of Mr. Car Wash, John Lai, will share how his organization rolled out employee programs designed to maximize cost efficiency while maintaining incredible employee engagement. 

Hear from Laurie Ledford, CHRO of Marsh and McLennan Companies, about how a diversity, equity and inclusion strategy can bring value to an organization, and how that strategy intersects with healthcare. 

Our track will wrap up with a discussion about how digital health is creating new opportunities for value in the healthcare market, and what that may mean for employers looking to reinvent their strategies.  CEO of Galileo, Tom Lee, will join to share his perspective on how the events of this year have accelerated the value of digital health.

2020 is the year everything changed, and it marks the beginning of a big shift for employer-sponsors. Employers are uniquely positioned to reinvent the healthcare marketplace to realize greater value from the system. 

To learn more, please join our half-day Employer track on Thursday, October 15th from 11:00 a.m. to 4:00 p.m.