Strategies, risks, and market alternatives
Leo Tokar //June 16, 2015//
Strategies, risks, and market alternatives
Leo Tokar //June 16, 2015//
Risk management has risen to the top of boards of directors’ responsibilities, and now, along with IT security threats, health care is a top priority. At a recent National Association of Corporate Directors program, our Colorado director community was treated to a far-reaching conversation on corporate responsibilities for developing health care strategy. The panel of experienced experts included Howard Carver, a director with insurance company Assurant; Tom Miller, national health care policy expert and American Enterprise Institute Fellow; and Jeff Wilson, SVP-Global Total Rewards at Western Union.
All brought a welcome pragmatic perspective to our region’s directors, who are being pressured to get up to speed on approaches to financing health care, connecting health care to their companies’ employment value propositions and other here-and-now impacts of the Affordable Care Act.
Though each expert came from different perspectives, all advised directors to further develop their own understanding of the issues:
Surprising and yet illuminating were the varying views on risk management of wellness programs. Each expert approached the issue from a different perspective and with some healthy skepticism. However, all agreed that a return on investment could be attained through results-focused measurement and coordination across the many program options affecting population health. Many programs are unsuccessful due more to lack of clear objectives and rigor in design rather than the concept itself.
Misguided decisions on health care amidst external confusion and change are open threats to any company’s reputation on a number of levels – not just image problems with employees, but customers, suppliers, vendors, shareholders and other stakeholders in the company’s community. The risks of litigation, the high fines for non-compliance, the political risks with programs that discriminate, the potential polarization with unions, unpredictable legislation and the debilitating results from misaligned health care strategies are greater than ever.
Human resource managers should provide a review of health care strategies, risks, and market alternatives to the board twice a year at a minimum, and for the board to carve out time for frequent, in-depth discussions on progress and on managing risks. Frequent discussions and board education on health care challenges provide a level of understanding that will help to mitigate surprises caused by the rapidly changing health care landscape.