Bull Market

Are your benefits ready for a recession?

Monday, October 21, 2019
Blog

The bull keeps running. The past decade has been very fruitful to investors, and most businesses, but the question remains, how long will it last?

At the present moment, businesses continue to have adequate access to “cheap money” as the economy continues to perform well. In many markets there are more openings than available
talent to fill them.

The question remains as to when this bull market run will end, and what does it mean for Employers when it does? This is an important question that we are asking many clients,
especially those that may not be as insulated as their Government Contractor counterparts.

Leading up to the downturn in 2008, patients were quick to take care of “elective” types of procedures (such as knee replacements) but quickly pulled back when 2008 hit. It was widely speculated that we would see a significant increase in disability claims filed, however many in the market remained relatively stable. Let us also not forget that the Patient Protection and Affordable Care Act (aka Obamacare) was even born in a post-apocalyptic 2008.

Do you anticipate the next downturn to occur in the next 3-5 years? This is an important question, especially as it relates to planning around your health plan. There are several reasons for this:

  • If you are already struggling to control healthcare costs, what impact will a downturn
    have?
  • With job losses, and decreased enrollment with insurers, can we anticipate higher than
    average health cost increases?
  • Do you think you can be doing a better job managing your health care costs?

These may all seem like obvious questions, with obvious answers, but the reality is that if we can anticipate a downturn, the planning should begin now.

There have been many first-movers and early adopters who have worked to overcome dysfunction when it comes to increased costs and decreased value in our current healthcare system. Many of these companies can serve as role models and case studies for those Employers who are looking to optimize, or at least be ready to do so should push come to shove.

At a minimum, employers should dedicate time and attention to studying these shifts. By looking at a 3-5 year blueprint to optimize your healthcare ecosystem, Employers can start to take common-sense steps to prepare, should they be forced to cross the chasm.

This was a hot topic of conversation during a recent on Relentless Health Value. You can visit any of the links below to hear more.

Improving Health Care Value by Pausing and Asking Questions

Health Plan Play Book

Managed Care Magazine: Even Small Employers are Striking Out on Their Own

No cute ideas, only
distilled concepts.

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