What is your experience with regards to medical costs?
What is the percentage of medical costs against total benefit?
Has the cost increased substantially or is incremental over the last 3 years?
Is the increase faster than inflation?
Have you addressed this? What have you done?
How do you manage the spending to be effective - payment for insurance vs for consumption?
Have you analysed the evolution of demographics and its impact on medical spending?
How have you leveraged the demographics profile vs the spending?
PURPOSE OF A MEDICAL COST SURVEY / STUDY
To look at MEDICAL METRICS as component of total benefit cost:
Internally, to
check on spending, that is contained and is justifiable
ensure that the medical benefit scheme is effective
manage medical costs: per headcount, cost by basic salary, employee category, total for company and as component of total benefits
Externally, to
benchmark against similar spending by other companies with the aim to obtain a better medical insurance package
BENEFITS
Based on the outcome of the survey/study, the following are some possible benefits
Help management to identify and manage cost
Provide recommendations for future medical cost planning are based on facts and figures
Astute strategic planning of HR cost
Help identify vulnerable areas to be addressed eg alert in in occupational health
Provide good platform to encourage employees to manage health - spend money for wellness
Help in the design of medical benefits scheme which are more relevant/meaningful to employee and to attract and retain talents
Enable employees to understand why overall benefits cannot be increased year on year and to seek cooperation (perhaps to introduce element of co-sharing)
