As the correlation between employee well-being and corporate success becomes ever more apparent, healthcare as a part of employee benefits is climbing the boardroom agenda. The year 2023 served as a pivotal juncture in the realm of employee healthcare, witnessing a remarkable evolution in the realm of employee benefits and well-being programmes. Amidst this transformation, the spotlight shines brightly on the escalating preference for Managed Care plans. Let’s delve into the reasons that fuel this trend and consider why Managed Care is the best way to look after the well-being of your employees, as well as the finances of your enterprise.
Demographic and generational trends in employee benefits.
As economic development advances, an increasing number of Indians are now adopting unhealthy lifestyle habits and consuming diets that are high in fat and sugar. As a result, the country is experiencing a rise in lifestyle-related diseases such as hypertension, cancer and diabetes. Change in work culture figures as a key contributing factor to the rise of lifestyle-related diseases. Demanding schedules, high stress levels and performance-linked perquisites are impacting employees’ health severely.
When considering health trends in the workforce, it is also important to analyse generational trends and evaluate risks and attitudes associated with different cohorts. According to PwC’s Global Workforce Hopes and Fears Survey 2022, 54% workforce in India are millennials (26-41 years), 26% are Gen X (42-57 years), 15% are Gen Z (18-25 years of age). Each generation is characterised by different health concerns and holds distinctive views on health and work. Designated departments within a business enterprise shall carefully assess these aspects when choosing the best healthcare plan for their employees. Here, we introduce some general guidelines.
The Millennial Workforce.
Millennial employees and their children are experiencing higher rates of chronic health conditions than older generations and are utilising medical resources in significantly different ways. When compared to other generations, Millennials exceed utilisation and treatment for costly medical conditions. With Millennials’ rising numbers and their high utilisation of the health care system, employers should consider how to tailor employee benefits to their Millennial-dominant workforce.
The Gen Z Workforce.
Gen Z employees are the most recent entrants to the workforce and value well-being support more highly than any previous generation. Gen Z employees are not only more likely to prioritise health and well-being over work, but they also tend to list positive culture, mental health and well-being benefits and a sense of purpose/meaning as their top three priorities when looking for a job.
Making up a combined share of 80% of India’s workforce – and more than 50% of India’s population, Millennials and Gen Zs are likely to exert a strong influence on management’s selection of healthcare corporate plans and benefits packages in virtue of both their health profiles and health services utilisation behaviours. Let’s see then how managed care can help you support your Millennials and GenZs’ dominated workforce in a financially beneficial way.
Managed Care: The big picture.
At its core, managed care is about money. Managed care controls healthcare costs by:
- Establishing networks provider;
- Managing utilisation by empowering purchasers to evaluate the need and appropriateness of care on a case-by-case basis prior to care being given;
- Steering away of the “if it ain’t broke, don’t fix it” mentality and focusing instead on preventive care as a strategy to lower healthcare costs;
- Fostering regular checkups and age-based screening for various diseases to identify potential health problems early, before the costs of treatment become greater.
Because of these distinctive features, managed care plans offer unique employee benefits to both employers and employees. Overall, by focusing on preventive care and on tackling health issues at the outset, a managed care corporate plan ensures that employees stay healthy and get healthier, which leads, in turn, to fewer claims and thus a reduced premium for the employer. Catching health issues early and preventing more significant problems down the road also reduces absenteeism and long sick-leaves associated with chronic and degenerative health conditions and causing significant financial losses.
Moreover, a managed care corporate plan offers a comprehensive network of accredited healthcare providers ensuring high quality standards and reducing out-of-pocket expenses, making healthcare more affordable and appealing for employees. A healthy workforce contributes not only to reducing the direct and indirect costs of illness that weighs on the employer, but also to enhancing employees’ productivity, engagements and satisfaction.
With regard to employees’ satisfaction, managed care further distinguishes itself from other healthcare plans by offering mental health services. Including mental healthcare in your employees benefits package is key to reducing the stigma surrounding mental health issues and making it easier for your employees to seek help when needed.
Employee benefits in the post-pandemic world.
As businesses and employees move past the period of crisis, they start reckoning with the realisation that structural changes are needed when it comes to employee benefits. In the post-pandemic era, preventive healthcare has surged to the forefront of priorities. OPD benefits serve as a potent tool in this regard, empowering employees to embrace proactive health management and reduce the risks associated with pre-existing health conditions. Through regular health screenings, consultations, and early detection, employees are equipped to tackle potential health issues at the outset. From a business perspective, healthy employees translate not only in higher rates of employees’ productivity and satisfaction but also in lower levels of absenteeism and sick leaves – and the costs associated with these phenomena:
According to the WHO, already in 2017, work-related health problems were said to result in an economic loss of 4–6% of GDP for most countries.
who.int/news-room
The bottom line.
Regardless of the size and nature of your business, the benefits of a well-tailored employees healthcare plan are not only undeniable, they are also becoming essential to maintain a competitive edge in a post-pandemic world. By controlling costs and offering comprehensive preventive care, managed care plans are increasingly becoming the best options for employees’ healthcare plans. Your employees’ health weighs heavily on your bottom line: it’s time to show that you care. Head on to teams.even.in to see how we at Even can help!
