May 27, 2024

Jason Nickel, Senior Vice President

In the realm of employee benefits, there’s a transformative approach gaining traction: Population Health Management (PHM). For employers seeking to optimize the health and productivity of their workforce while containing health care costs, understanding PHM is essential.

At its core, PHM is a strategic method aimed at enhancing the overall health outcomes of a defined group, typically employees and their dependents. Rather than viewing healthcare through a narrow lens of individual treatments, PHM takes a holistic approach, considering the collective wellbeing of the entire population. So, what does this mean for employers? It translates into proactive initiatives designed to prevent illness, manage chronic conditions, and promote overall wellbeing among employees. Here’s how a successful PHM strategy can benefit an organization:

1. Preventive Care Emphasis: PHM encourages a shift towards preventive health care, focusing on early detection and intervention to stave off potential health issues before they escalate. By investing in wellness programs, health screening, and lifestyle management initiatives, employers can help employees stay healthy and productive.

2. Chronic Disease Management: Many employees grapple with chronic conditions like diabetes, hypertension, or obesity, which can significantly impact their quality of life and work performance. PHM facilitates effective management of these conditions through coordinated care, personalized interventions, and support services, ultimately reducing absenteeism and health care costs.

3. Engagement and Empowerment: Central to PHM is the notion of engaging employees in their health journey. By providing resources, education, and incentives, employers can empower individuals to make informed decisions about their wellbeing, fostering a culture of health and accountability.

4. Cost Containment: By prioritizing preventive care and chronic disease management, PHM can yield substantial cost savings for employers. By mitigating the need for expensive medical treatments and reducing absenteeism, employers can effectively manage health care expenditures while improving the bottom line.

In essence, Population Health Management represents a paradigm shift on how we approach employee health and benefits, with success relying on a deep understanding of the plan data and a proactive benefits partner that isn’t afraid to challenge the status quo.

When it comes to navigating the complexities of PHM, Alera Group has a wealth of tools and in-house expertise to help employers achieve their goals. We focus on:

Data-Driven Decision Making: We leverage health care data to inform long-term strategic plan decisions, ensuring that every step is backed by comprehensive insights tailored to your population’s unique needs.

Cutting-Edge Risk Identification: Utilizing Johns Hopkins ACG System, we identify both current and future risks, allowing for effective implementation of proactive measures.

Performance-Oriented Approach: Alera Group assists in setting objective goals for vendors, leveraging these benchmarks to develop performance guarantees that drive accountability and excellence.

Future-Focused Solutions: By identifying future cost drivers and connecting them to the correct resources, we ensure your PHM strategy remains adaptable and forward-looking, safeguarding your business from unforeseen challenges.

For more information on implementing a Population Health Management strategy at your organization, contact Jason Nickel: (616) 745-3525, [email protected]

PHM Client Case Study

• Client had locations across the country and needed to understand unique needs

• Client had significant investments in an onsite clinic and no indication of the impact

• Pharmacy spend was increasing at an unsustainably high rate

After meeting with the client, Alera Group put a strategy in place that included integrating data from all sources and vendors, auditing PBM data, evaluating vendor programs, and identifying unique needs by state. This enabled the client to select a better onsite partner, eliminate ineffective vendor partnerships, and change their specialty medication strategy, resulting in:

• A 22% reduction in plan spend over two years.

• $1.9M saved in specialty medications in one year.

• Improved member health and reduced dependency on the health care system.


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