Cutting costs: the forward view: developing a health optimization strategy is critical to your bottom line.

There are two things we can safely say about the cost of health-care benefits without fear of contradiction: (1) they are more expensive today than ever, and (2) they are less expensive today than they will be tomorrow.

There's even less we can say for certain about addressing the cost of health care, but one thing is clear: those who do not look to new and proven technologies will pay more than their more forward-thinking peers who are on the upward slope of the figure shown below:

Managed care was introduced to help stem the tide of rising health-care costs. And it did--for a while. Now, a new wave of cost increases is swelling. And now is the time to move beyond the obvious answers, to innovate and invest in the future.

Somewhere between managed care and defined contributions some truths are coming to light:

* A healthy workforce is a productive workforce, and an empowered workforce is a loyal workforce.

* The paternalistic role of health-care provider is in direct contrast to the need to encourage employees to take responsibility for their own health-care decisions.

The extent to which employees are able to understand and act appropriately on their health status, health needs and health options will be in direct correlation to their access to the best available information and tools. This can be done. The technology exists, the knowledge exists, and employees want to make their own choices.

Divesting the employer of its paternalistic role, containing costs through appropriate plan offerings, providing employees with the tools needed to make their own health and health-care decisions can all be done while improving the bottom line.

By assessing corporate need; aggregating, integrating and customizing appropriate tools; determining workforce health status and tailoring information for maximum adoption, both employee health and corporate health-care dollars can be optimized.

A consultant can show you how this can be achieved, putting you in the ranks of forward-thinking employers who have adopted this cost-saving strategy. Unless you act now, you'll find yourself on the downslope of the curve and your bottom line will continue to suffer until you move forward with a strategy to optimize the health and health care of your employees.

Make no mistake when considering the wisdom of adopting a health optimization strategy. The day is not coming when employers will say: "You know, it was better when we printed and mailed and enrolled on paper. And it was better when we selected the plans we thought were best for our workers. And it was better when we saw that our workforce suffered with chronic conditions but we just continued to pay for the care."

In fact, there's not much else to decide except where you want to be--on the upward slope or the downward slope.

A. David Vinson is president and CEO of Optate Inc. in Ann Arbor, a Bronze-level member of the Detroit Regional Chamber.

Wait-and-see approach?

Employers are slow to adopt cutting-edge techniques for saving on on health-care costs, according to a recent survey from Aon Consulting.

The survey of 265 employers found that while 33 percent increased office visit co-pays and 31 percent increased deductibles for 2002, only:

* 20 percent added a disease management program to control such chronic diseases as diabetes, hypertension or asthma.

* 7 percent implemented a self-directed health plan option.

* 1 percent joined a drug-purchasing coalition.

These findings show that employers are taking a "wait-and-see" approach to disease management and wellness programs, says Steve Peck, a health and welfare consultant in Aon's Detroit office.

A. David Vinson is president and CEO of Optate Inc. in Ann Arbor, a Bronze-level member of the Detroit Regional Chamber.