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Healthcare Cost Containment
Healthcare Cost Containment
Healthcare Cost
Containment
A guide
for benefits
managers
Chances are you’ve heard the
term “cost containment”
before. It’s what every benefits
manager (and their CFO) wants:
to reduce healthcare costs
without cutting benefits.
5%
the amount the average employer’s healthcare
spending increases each year
INTRODUCTION
Cost distribution
for employer
$18 million overspend
Cost distribution
for entire Aetna
network
40%
of patients have gone to an
out-of-network doctor by mistake
Pregnancy
& childbirth
PREGNANCY & CHILDBIRTH
$50,000
the average cost of a C-section
delivery in the United States
PREGNANCY & CHILDBIRTH
This kind of cost and quality Not only will this help employees
information is difficult for start their family without financial
employees to find on their own. stress, it will take a huge burden
A good cost containment off your budget, too.
strategy will help educate
MRI 13.2%
Ultrasound 9.5%
CT Scan 9.0%
X-ray 6.6%
Sedation 1.5%
Colonoscopy 1.2%
Most employes don’t realize that In the chart below, you can see
you don’t have to go to a hospital the range in average cost of limb
to get an X-ray, MRI, or CT scan. MRIs in 14 different states at
You can go to a much more hospitals and freestanding
affordable freestanding imaging imaging centers. In Michigan and
center instead. The majority of Alaska, $2,000 could be saved if
these facilities have no affiliation an employee chooses to have an
to a large healthcare network, so MRI at a freestanding imaging
there are fewer hidden costs to center instead of a hospital.
hike up the price of your visit.
Michigan
Alaska
South Carolina
Oklahoma
Ohio
Oregon
Wisconsin
Washington
Texas
Connecticut
Florida
Virginia
Idaho
Tennessee
Outpatient surgery
O U T PAT I E N T S U R G E R Y
$5 billion
was saved by 400,000 individuals who
had minor procedures at ASCs instead
of in hospitals
ER overuse
ER OVERUSE
15-30%
of ER visits are unnecessary and could be
treated elsewhere, like at an urgent care center
ER OVERUSE
100%
75%
64% 62%
59%
55%
49% 50%
48%
50%
39%
33%
25%
0%
Age of patient
3
Tactical checklist
for cost containment
C O S T C O N TA I N M E N T TAC T I C S
57%
of millennials say their insurance portal
lacks information on healthcare costs
C O S T C O N TA I N M E N T TAC T I C S
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