DHA 806 Week 6 Discussion 1

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Virginia University of Lynchburg *

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Health Science

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Feb 20, 2024

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Natalie F Duvilaire DHA 806B Week 6 Discussion 1 2/11/2024 Pitney Bowes' employee health insurance program aims to offer cost-effective, high- quality coverage. They use self-insured plans managed by insurers under third-party ASO contracts to facilitate flexible benefit design and data access. Pitney Bowes also provides disease management wellness programs backed by financial incentives, onsite clinics, and customized pharmacy benefits (Porter & Baron, 2009). Pitney Bowes's capacity to maximize its value proposition, which encompasses the internal customers the plan covers, their demands, and comparable pricing, is limited by the limits of its self-insured health program (Magretta, 2012). The program's target audience was corporate workers close to important facilities, as rural people had less access to healthcare. Relying on outside parties to oversee services such as illness case management could undermine employer influence and employee views. Data sharing between suppliers may also be restricted due to privacy concerns, limiting healthcare provision and patient experience. Pitney Bowes's influence over provider quality is limited to the clinic areas. Federal rules also prohibit some financial incentives, which limits their capacity to customize premiums and rewards further. Additionally, employees now bear a more significant portion of the costs, which may lower their view of the program's worth (Porter & Baron, 2009). Pitney Bowes' health program has restrictions that make it challenging to optimize the value proposition for workers completely. The clients a business wants to serve, the needs it wants to fill, and the relative pricing that adds value make up its value proposition (Magretta, 2012). Pitney Bowes's capacity to customize its value proposition for each employee is limited by program scope, integration, data exchange, and financial incentives limitations. The program's emphasis on corporate employees hinders Pitney Bowes's ability to differentiate its value proposition for remote workers. Dependence on several vendors limits the opportunity for integration to address needs comprehensively. Restrictions on financial incentives and data exchange also make it challenging to customize staff demands. Pitney Bowes cannot design a health program value proposition with activities specifically catered to the requirements and preferences of specific employees (Magretta, 2012). Pitney Bowes is constrained in their ability to modify and contribute to this ASO contract to enhance the value offer. Pitney Bowes could discover particular unmet needs of remote employees and create extra benefits to fulfill those demands better to optimize the value proposition within program restrictions. Naturally, this will weaken the profit pitch and reinforce the value and people propositions. Pitney Bowes can distinguish its health program in one or two areas, one of which is this alternate benefits pathway. Even though the employee's out-of- pocket expenses are higher, having alternatives to this self-insured option for healthcare insurance may also be beneficial. In conclusion, Pitney Bowes can customize value within program constraints by emphasizing the flexibility of optional benefits, even

though the company has hurdles in developing an optimal health program value proposition. A distinctive value proposal highlighting Pitney Bowes' distinct value proposition to prospective workers may include enhanced optional benefits. Although Pitney Bowes' health benefits have been recognized and costs have been controlled, creating an optimal value offer customized for each employee is difficult due to program scope, integration, data sharing, and incentive restrictions. Nonetheless, their work offers insightful information about creative employer health plan design. References Magretta, J. (2012). Creating value: The core. In understanding Michael Porter: The essential guide to competition and strategy. Harvard Business Review Press. Porter, M. E., & Baron, J. F. (2009). Pitney Bowes: Employer health strategy. Harvard Business School.

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