One of the biggest potential upsides to containing costs through an optimally designed plan is that plan sponsors then have the budget to ensure better health for their members.
Let’s consider the case of a common source of absenteeism, short-term disability and long-term disability in the workplace: depression. What’s frightening is how common both mild to moderate and moderate to severe depression are within our society—according to a 2007 paper commissioned by Bill Wilkerson of the Global Business and Economic Roundtable on Addiction and Mental Health, nearly one out of seven Canadian adults is treating depression at any given time. While both the federal and provincial governments are beginning to take mental health seriously, it’s also the plan sponsor’s turn to explore what can be done.
Here are the results of one plan sponsor’s experience with employee depression:
When you consider that it costs less than $1 per day to treat most patients with mild to moderate depression with drug therapy, and compare that figure to the cost of even one missed day of work (or a number of days of suboptimal productivity), the math is easy to do.
Furthermore, employers that have identified, quantified and realized savings through better management of their drug plan benefits have financial resources to focus on improving medication and treatment adherence without incurring additional costs. Such initiatives not only optimize member health but can also pay for themselves simply by focusing on responsible cost containment within the plan.
It’s my hope that ensuring better health for employees will be automatic for sponsors that have saved benefits dollars through better management of their drug benefits plans.