Reference no: EM131801825

The rising cost of health care is leading many companies to examine opportunities to control costs of health insurance as well as other benefits programs they offer. Reading publishing is no exception. The company continues to grow, but Jake knows that his role in controlling health care costs while providing benefits that meet employee needs is essential to the future success of the company.

Jake's focus on cost control has resulted in several changes over the last several years. The company has already increased the employee contribution to health care premiums twice. The company has also renegotiated its health insurance plan last year. Slightly higher deductibles led to lowered cost to the employer. Jake is convinced he has lowered the health care costs as much as possible. He is now trying to focus on reducing costs by lowering the number of claims made by employees.

To lower the number of claims, Reading Publishing has started using a case manager for employees with chronic health conditions. This, however, is only a small percentage of employees covered under the health care plan. He reviews a utilization report provided by the company's insurance and discovers the higher number of claims is coming from employees without a chronic health condition.

Jake suspects many of the claims are a result of unhealthy employee behaviors. He knows the employees are under a great deal of stress. Many travel frequently and face stern deadlines. He knows many employees smoke and alcohol consumption is part of the industry culture. Finally, due to demanding schedules, few employees take the opportunity to exercise.

Jake believes there are some opportunities for change.

1. What are some examples of steps Jake could take to lower health insurance costs?

2. What are some other areas that Jake should explore to reduce the overall costs of benefits?