What Should Employers Do about Health Care?

An excellent article in the Harvard Business School - Working Knowledge by Michael E. Porter, Elizabeth O. Teisberg, and Scott Wallace.

The article provides clear direction to employers about the focus shift that they will have to make in terms of employee health care. An important point that Professor Porter makes is "In every other aspect of their business, employers are attuned to quality and value. But health care has been treated as a commodity and cost reduction has been the dominant approach."

Clearly the health care benefit has never been viewed from a value perspective by most employers. This is the case in India as well, where most employers focus on negotiating lower premium from their carriers year-on-year failing which they switch carriers.

With the world economy at a decline, the pressure on employers to improve productivity and reduce absenteeism and presenteeism is going to steadily increase, at which point, a lower insurance premium is simply not going to solve the greater problem.