Keep costs low without skimping on population health

Insight 3 from the 2014 CEO Special Sessions

See where other population health managers are in:

In the short term, low unit prices will be a big decision factor at both points of sale. Network assemblers will count on low prices to reduce total costs and yield the low premiums that insurance shoppers demand. And at the point of care, low unit prices will go a long way in winning the preference of individual patients and physicians.

In the long term, it’s the trend that matters. Effectively managing population health will be crucial for keeping premiums affordable beyond the initial sale. Remember, it’s a lot easier for individuals to switch plans if premiums don’t stay low.

Balancing the short- and long-term imperatives isn’t easy. Investing in population health capabilities like IT infrastructure, care management staff, and new access points means diverting financial resources and reducing the flexibility to lower unit prices today.

Striking the right balance will mean fighting hard on both fronts. You’ll need to continue trimming costs and finding scalable ways to build population health infrastructure to lower total cost in the future.