Barbara Ludwig, Human Resources Manager, Chooses Wellness Program to Drive Down Costs
As the human resources manager for Benton County, Arkansas, Barbara Ludwig knows first-hand how rising health care costs have affected the self-insured county and its nearly 500 insured employees. In 2005, the county’s health care fund was nearly half a million dollars in the red, which had the potential to cost jobs and employee raises, and eventually affect capital improvement projects.
In an effort to reduce this trend, Ludwig and her staff decided to try an employee wellness approach, something they had never tried before. The results surprised them. In just 17 months, they saw the total cost of medical claims decrease by more than $1 million, putting their health care fund back in the black. Although the program is voluntary, they had 90 percent participation.
“With Covenant Services Group, our 2006 claims were 25.67 percent under 2005,” said Ludwig.
In this era where health plan costs are escalating at more than five times the rate of corporate profits and five times the rate of inflation, a 25.67 percent decrease in claim costs is significant, particularly when it was achieved without raising premiums, deductibles or co-pays, or eliminating or reducing benefits.
Benton County also received the annual Society of Human Resource Management (SHRM) award for their state, based on the implementation of this program from Covenant Services Group.
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