PlanAhead Direct

A newsletter for plan sponsors and employee benefits professionals
PlanAhead Direct Newsletter July/August 2007 Volume 7, Number 5

Partnership Unveils New Purchaser Guides to Value-driven Health Care

Last November, HHS Secretary Michael Leavitt convened a meeting of major US employers to discuss health care transparency and value-driven health care. There, he issued a challenge to employers to implement “four cornerstones of value-driven health care”: utilizing health information technology, measuring and publishing quality information, measuring and publishing price information, and creating positive incentives for high quality, efficient health care.

In response, members of The Partnership for Value-driven Health Care initiated the development of three guides to help various types of purchasers quickly identify which initiatives they can undertake to meet each of Secretary Leavitt’s cornerstones. Last February, the first guide was introduced: 'The Purchaser Guide to Value-driven Health Care.

Many Workers Struggle With Basic Health Benefit Terms, Watson Wyatt Survey Finds

Many U.S. employees don’t understand how their health care coverage works and admit their familiarity with the most basic health care vocabulary needs improvement, according to a survey by Watson Wyatt.

In its survey of nearly 2,100 covered workers, Watson Wyatt found that a top challenge for 43 percent of workers is understanding what their health care plan covers. Moreover, less than half are comfortable explaining common health benefit terms, such as co-pay or deductible, to a friend or coworker. And fewer than one in four feels comfortable describing health savings accounts, coinsurance and terms such as formulary and center of excellence.

Will the Obese Be Penalized by Insurers Like Smokers?

A small but growing number of employers charge smokers more for their health care than they do for nonsmokers. But as evidence continues to link unhealthy lifestyle choices to health care costs and lost productivity, another question arises: Are obese workers next?