Mini-White Paper: Control Costs And Improve Quality Of Care
Do you know where your organization's healthcare and employee benefits dollars go? More than ever, employers are looking for cost savings while also improving the quality of employee care. Maximizing your return on investment may seem challenging without a clear understanding of the solutions and programs that can make a meaningful impact on the health of your workforce and your company’s bottom line.
Simplifying your strategy and decision-making is easier when you understand the full picture of your organization's spending and cost-saving opportunities. See how a Total Cost of Care approach can provide more value for you and your employees through the areas of network and benefit design, member engagement, clinical programs, and cost protection.
Learn more about the four key components of Total Cost of Care in our mini-white paper below.
Understanding the full picture of Total Cost of Care
A strategic approach to lowering employer healthcare costs
Healthcare costs are projected to increase an average of 7% in 2024 due to rising industry expenses and inflation.1 For instance, if an employer’s health plan currently costs $10,000 per employee in 2023, it would cost approximately $10,700 in 2024. Given this trend, employers continue to look for ways to control costs while improving the quality of employee healthcare.
By adopting a Total Cost of Care (TCOC) approach, you can gain a clearer picture of the solutions that can not only provide high-quality care for your employees, but also make a meaningful impact on the health of your organization and your bottom line.
What is a Total Cost of Care approach?
Total Cost of Care refers to the total amount an organization spends on healthcare and health benefits for employees and their dependents. While the concept is straightforward, understanding and managing the variables that impact your organization’s health plan costs can be significantly more complex.
Let’s explore each of the key components, how they work together, and why this approach can benefit both you and your employees.
The four key components of Total Cost of Care
Our maximum access provider networks, including the BlueCard® PPO and Select Networks®, lead the industry by delivering 9-11% lower Total Cost of Care over competitors.2
Plus, our Blue High Performance NetworkSM offers an average savings of 11% on top of that.3
Network and benefit design
Clinical programs
Member engagement
Cost protection
Total Cost of Care in action
Maternal healthcare is consistently among the highest cost claims for employers. Here’s an example of how the four TCOC components can work together to deliver savings for your organization and better health outcomes for your employees.
Questions? We’re here to help. Contact your account management team, broker, or sales representative for more information. Together, we can determine the right Total Cost of Care approach for your organization’s needs.
1 PwC: Medical cost trend: Behind the numbers 2024 (accessed June 2023): pwc.com.
2 Leading Consulting Firm CY2018 Total Cost of Care Benchmark data.
3 Consortium Health Plans analysis, 2020. Savings are on average and assume 100% enrollment. Results will vary based on employer locations and implementation.
4 Centers for Disease Control and Prevention: Health and Economic Costs of Chronic Diseases (accessed June 2023): cdc.gov.
5 Amy’s story represents a potential member journey and is hypothetical in nature.
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Anthem Blue Cross and Blue Shield is the trade name of: In Colorado: Rocky Mountain Hospital and Medical Service, Inc. HMO products underwritten by HMO Colorado, Inc. In Connecticut: Anthem Health Plans, Inc. In Georgia: Blue Cross Blue Shield Healthcare Plan of Georgia, Inc. In Indiana: Anthem Insurance Companies, Inc. In Kentucky: Anthem Health Plans of Kentucky, Inc. In Maine: Anthem Health Plans of Maine, Inc. In Missouri (excluding 30 counties in the Kansas City area): RightCHOICE® Managed Care, Inc. (RIT), Healthy Alliance® Life Insurance Company (HALIC), and HMO Missouri, Inc. RIT and certain affiliates administer non-HMO benefits underwritten by HALIC and HMO benefits underwritten by HMO Missouri, Inc. RIT and certain affiliates only provide administrative services for self-funded plans and do not underwrite benefits. In Nevada: Rocky Mountain Hospital and Medical Service, Inc. HMO products underwritten by HMO Colorado, Inc., dba HMO Nevada. In New Hampshire: Anthem Health Plans of New Hampshire, Inc. HMO plans are administered by Anthem Health Plans of New Hampshire, Inc. and underwritten by Matthew Thornton Health Plan, Inc. In Ohio: Community Insurance Company. In Virginia: Anthem Health Plans of Virginia, Inc. trades as Anthem Blue Cross and Blue Shield in Virginia, and its service area is all of Virginia except for the City of Fairfax, the Town of Vienna, and the area east of State Route 123. In Wisconsin: Blue Cross Blue Shield of Wisconsin (BCBSWI), underwrites or administers PPO and indemnity policies and underwrites the out of network benefits in POS policies offered by Compcare Health Services Insurance Corporation (Compcare) or Wisconsin Collaborative Insurance Corporation (WCIC). Compcare underwrites or administers HMO or POS policies; WCIC underwrites or administers Well Priority HMO or POS policies. Independent licensees of the Blue Cross Blue Shield Association. Anthem is a registered trademark of Anthem Insurance Companies, Inc.