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Worcester Business Journal www.wbjournal.com 2015 Economic Forecast 25 h e a lt h c a r e S P O N S O R E D B y S hopping: private exchanges for large employer groups Give employees a fixed amount of money. Then arm them with decision-support tools so they can customize a total protection solution. That's the essence of private exchanges. Their advantages of enhanced choice, flexibility, customization and cost savings make them the next "big thing" in U.S. health care. According to a recent Accenture survey, some 40 million U.S. employees are projected to be enrolled in one by 2018. At Harvard Pilgrim, we see this as an attractive option for our employer customers. We have a robust portfolio of products for large Massachusetts businesses on the Bright Choices® exchange powered by Liazon Corporation, a leader in this space. What makes private exchanges so attractive? They save employers money through a defined contribution strategy with predictable costs. They also reduce administrative expenses. And they support retention by enabling employers to offer more health plan choices and ancillary products to meet the diverse needs of their employees. We expect the private exchange market to steadily gain traction over the next few years, led by early adopters open to a new way of thinking about benefits. Opportunities to save: curbing health care costs There are several different ways employers can help cut their health care costs. Here are a few tried and true strategies that can make an impact in 2015 and beyond: • Incorporate a fixed-dollar contribution policy, which helps turn employees into true stakeholders • Offer programs that compare costs of medical services, including online tools showing the significant variation in costs for care • Adopt premium-saving network-based plans, such as high-performance defined network plans or plans with tiered copayments • Promote lower-cost generics and mail order drugs, which can make a significant savings impact • Promote judicious use of the emergency room and use of urgent care clinics when appropriate Making a healthy investment in wellness On a related note, investing in wellness can make a strong impact on employee well-being, satisfaction and productivity. More and more employers are adopting wellness programs, wisely viewing them as an investment in a healthier, more productive workforce. Working closely with your insurer to develop a long-term wellness strategy can help shape healthy behaviors. Health questionnaires, biometric screenings, nutrition/ weight management, stress reduction, smoking cessation and other programs can lead to a culture of well-being, and employer-sponsored incentives can help boost participation. For example, Harvard Pilgrim's new BeyondHealth SM program is a comprehensive, strategic approach to wellness programming that extends past the traditional focus of diet and exercise, to actually get at the root cause of behavior change. This approach includes a cutting- edge online platform, EveryBODY Get Healthy, that provides participants with a fun, easy way to encourage and track their healthy lifestyle activities, complete with rewards and recognition along the way. We're also seeing strong employer interest in EatRight Rewards SM , our innovative new program designed to promote healthy eating. The program, which is the first in New England, compensates consumers who buy healthy foods at the grocery store. The next year may not be transformative, but it will surely require many of us to think about health care and take action in new ways. Fasten your seatbelt! n Private exchanges, curbing costs and wellness opportunities A new approach, savings strategies and healthy behavior take center stage for 2015.