HR uses many metrics to measure their success, like staff turnover by job description, days to hire, cost to hire per job ticket, and others that keep their work aligned with the mission of each department they serve. In some organizations’ HR handles both workers compensation and health and welfare like group medical, term life, disability. HR performance there revolves around productivity for open enrollment via automation, efficiency of the administrative costs of TPAs and other outside consultants.
An actuary member of FASI Florida Association of Self-Insureds assisted me to put together a self-funded program. I shopped stop-loss insurance carriers. Since margins were tight, we needed an outside the box solution that wasn’t a self-funded program from their health carrier.
We showed how to function like an insurance company for group medical benefits using stop loss insurance, comparable to reinsurance. By aligning bottom line to even a line of insurance like health coverage, the HR staff will work with employees to improve their health. Offering fitness is interesting but using a measurable outcome like dividends related to health insurance spend can provide the incentive and motivation for HR to work with employees and providers to deliver improvements. The slide below shows the dividends that can flow from better outcomes in health spend at a business.
How much?
$2 million in cumulative dividends in four years validates that HR can deliver ROI for the shareholders utilizing this method to fund medical benefits.
Specialists exist to help both group medical and workers compensation as well. Effective claims management can reduce– even eliminate– the need to change insurance carriers. Success reduces insurers’ reserves. Your corporate balance sheet, instead of being encumbered via claims worksheets and diaries, grows. We help HR build your balance sheet.