Big Change Means Big Money
In 2015, the average cost of company healthcare was 7.6% of the annual operating budget. Additionally, the average cost per employee has risen 11 years consecutively (SHRM.org 2016). In Wisconsin, employers pay an average of $13,185 annually per employee (KFF.org 2016). For an organization of 310 people, the total annual budgeted cost is approximately $4,000,000.
The myth is that we’re victims of policy and insurance carriers, and we can do little to control cost. It’s simply not true. COR works.
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Reducing the average spend per employee by 10% in the example above would save the company $400,000 annually. Savings of this magnitude creates opportunity! In addition, most companies fail to consider how much of their existing budgets are currently allocated to areas dealing with the poor health of employees. Early in our process of onboarding organizations, we discuss and evaluate employee data. When non-claim costs such as lost time, injury, absenteeism, and coverage are included, the total spend can increase another 10-15%. Considering this, you must allocate a budget of $4,440,000 and that doesn’t include salaries yet. On average, COR services cost less than 2% of this budget.
COR’s volunteer member structure ensures value for sustainability and growth. We have proven our ability across our clients to capture 35% of a population in the first year, so your investment in COR Wellness is a lean approach that paces growth. We will also identify operational savings to help offset incremental increases in your organizational spending. COR develops big targets for our organization and impacts employee costs by year two. With knowledge and improved health, we provide you the ability to leverage health benefits more wisely. And the bottom line is, your employees will feel better about themselves, and better cared for and invested in by you.