You have undoubtedly heard of the 80/20 rule, where 80 percent of the results are typically produced by the top 20 percent of your people. Previously, this rule seemed to hold true in many areas, including medical claims. Eighty percent of your medical claims costs were caused by 20 percent of your employees.
However, based on the following facts 1, the old 80/20 rule is no longer the current standard for medical claims.
So, how do we combat these facts with real solutions? That’s the loaded question with a multifaceted answer. Living a healthier lifestyle is the most obvious conclusion. However, alternative forms of treatment and therapies are also considerations. There’s no doubt that the debate on how to solve the chronic disease conundrum will continue. One thing is for sure, it will take more than the medical community to solve the dilemma.
While I can supply another bullet point list of recommendations, it’s likely you already know what you can do, if in your control. A good start is to make sure you have an annual physical appointment (most plans include it without a co-pay). Early detection is a key for sustained health and lower costs of treatment.
The longer you go with a latent issue, the more harm it will cause down the road; both physically and economically. Make that a first step in your personal plan. You might save all of us some money!
1 Source: Benefits PRO magazine August 2018 article “Data Analytics” authored by Richard Kersh and Chris Caramanico (Orthus Health)
2 Source: Mercer FOCUS database for active employees and their dependents. ($8.5Billion in aggregate average annual costs and 1.6 Million members. Claims incurred between July 2016 and June 2017.)