Written by Dr. Joel Warshaw | Published on Wednesday, September 23rd, 2015
In our recent blog posts, we’ve discussed how concierge medicine is the perfect fit for self-funded employers and how concierge medicine can reduce employee healthcare costs. Unlike the traditional model of offering 100% health insurance through a major carrier, companies utilizing a self-funded program with a stop loss insurance plan have much more flexibility. By partnering with concierge physicians, employees can now be offered the highest level of healthcare access and service, while heavily promoting preventative care.
The end result is a happy and healthy workforce, a more productive workforce and significant bottom line savings in healthcare expenditures – and the numbers show it.
In this blog post, we’ll examine the many ways that real companies are experiencing savings as a result of partnering with a concierge physician to help support their self-funded insurance program. For this exercise, we’ve profiled four self-funded employers that work with a dedicated DPC physician. These companies work in industries ranging from manufacturing to higher education with annual plan costs of two to five million dollars. Plan Cost Per Employee (PEPY) ranges from approximately $8,000-14,000 annually. Each of these examples focuses on small businesses with under one thousand employees receiving coverage.
In each of these cases, a dedicated concierge physician is assigned to the workforce. Employees receive all of the standard benefits of working with a concierge physician: the ability to build a relationship with a doctor that has a deep understanding of their specific history, hands on preventative care, longer visits and constant access when problems arise. There is also an added factor of convenience in employee access to the concierge physician when this partnership exists. It is widely reported that increasing visit time and improving patient experience of care results in more engaged patients that are motivated to manage their health care. Clinical outcomes and associated costs lower as a result.
Let’s take a look at the breakdown of cost savings for self-funded employers that currently partner with concierge physicians. Within these reports, we are seeing an average of 30% enrollment of employees utilizing the concierge model. We have achieved on average 100% savings on primary care office visits, 25% saving on Hospital/ER/Urgent Care visits as well as a 25% savings on radiology, laboratory and prescription costs.
|Project Concierge Savings||Company A||Company B||Company C||Company D|
|Plan Design Savings||$329, 265||$242,115||$137,672||$172,038|
|Yearly Concierge Fee per Member||$1,000||$1,000||$1,000||$1,000|
|Total Program Savings||$358,167||$270,514||$165,573||$178,505|
|Savings per enrollee||$2,117||$2,584||$3,515||$1,690|
|Total Program Savings (%)||6.5%||6.7%||7.2%||6.2%|
As you can see above, self-funded insurers will save companies on average between 6.2 to 7.5% in annual savings, which can save companies as little as $600K or as much as $1.6M after 3 years. Opposed to the traditional model of offering 100% health insurance coverage through a major carrier, companies utilizing a self-funded program with a stop loss insurance plan who team up with concierge physicians take a role in carrying out an action plan for health-care. When this happens, there is a material impact to the company’s bottom line.
What’s more? The benefits of the partnership between concierge physicians and self-funded employers goes beyond the bottom line. It has a direct impact in the employee quality of life and productivity. How has your company benefited from this arrangement? Share your comments below.