Cost Mitigation and Health Improvement Strategies

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SUMMARY AND RESPONSE TO HEALTH INSURANCE ARTICLE Cost Mitigation and Health Improvement Strategies In this era of increasing awareness and concern about the exorbitant cost of healthcare, employers have begun to apply cost-mitigation strategies to reduce the total costs of their employee health insurance policies. Some of the more typical approaches include establishing general policies and formal plans to reduce healthcare expenses, such as by promoting employee participation in their optimum health. Many employers now provide financial incentives such as by rewarding employees for participating in health awareness surveys and for signing up for health management plans. In principle, the purpose of these mechanisms is to raise health consciousness and motivate employees to participate more directly in their own health management to reduce the cost necessary to treat unmanaged diseases that could have been prevented or addressed earlier in their course of development. Many employers are also encouraging their employees to take advantage of the lower-priced consumer directed health care (CDHC) plans that both provide additional incentive and allow individuals to help control the costs of their health care services by saving the funds remaining in their annual funds at the end of the year. Effectiveness and Apparent Flaws in Organizational Methods and Approaches In many respects, these measures have been successful, but analysts suggest that they could be managed
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