How Employers Can Slash the Cost of Health Benefits

Dec. 30, 2014
management

In 2007, King County, Washington State, launched an intensive employee wellness and patient compliance effort targeting its 14,000 employees. Given the size of its workforce, health care was a significant cost center. According to Dow Constantine, the County’s top executive, “We were being eaten alive by runaway medical costs.”

In response, the County invested in a program that incented employees to change their behavior. After obtaining labor union support, the County invested nearly $7 million over the first two years developing the program and conducting employee outreach and education.

According to Constantine, the upfront investment saved the County over $46 million in the first five years (2007-11). “Our success was due in part to financial incentives we offered our employees,” says Constantine. “The effort returned $61 million in surplus health care funds to the county.”

Read more on the cost of health benefits on IndustryWeek.

IndustryWeek is an NED companion site within Penton's Manufacturing & Supply Chain Group.

Sponsored Recommendations

Read this paper to learn how to minimize equipment run times, maintain stable air pressures, and reduce power consumption.
Watch this on-demand webinar as experts discuss air treatment best practices, including the uses of air treatment components in a compressed air system, how component selection...
Get this system design engineering guide to understand the basics of compressed air technology and discover strategies for long-term system reliability and efficiency.
Learn how to get a smart, reliable, energy-efficient compressed air system delivered in a turnkey, weatherproof and temperature-controlled enclosure that needs little or no onsite...