Member engagement plays a crucial role in improving outcomes, keeping costs in check and maintaining profitability. When members are actively engaged in their healthcare, it not only improves their health outcomes but can also significantly impact the profitability of health plans.
The Power of Engagement
Member engagement, at its core, involves individuals actively participating in their healthcare decisions and maintaining their wellness. Engaged members are more likely to attend regular check-ups, follow treatment plans, and take preventative steps to maintain their health. This active participation can lead to early detection of health issues, better management of chronic conditions, and overall improved health outcomes. While some members are proactive, most of them need a bit of help in the form of reminders, gentle nudges, and motivation.
Cost Savings of Engaged Members
When members are engaged, they are typically healthier. Healthier members equate to fewer hospital admissions, fewer expensive medical procedures, and less reliance on emergency care. According to a study published by Health Affairs, a leading journal of health policy thought and research, higher patient engagement has been associated with lower hospitalization rates and lower healthcare costs. Thus, increased member engagement can lead to significant cost savings for health plans, improving their bottom line.
Improved Retention and Acquisition
Engaged members are more likely to remain loyal to their health plan. If members feel that their health plan is taking an active interest in their health and well-being, and they are seeing tangible health benefits, they are less likely to switch to a different provider. This improved retention reduces the costs associated with member turnover and helps maintain a steady revenue stream.
Additionally, a reputation for strong member engagement can attract new members. In an era where consumers have numerous choices for health plans, having a proactive approach to member health and engagement can differentiate a plan from its competitors, aiding in member acquisition.
Value-Based Care and Reimbursement
The healthcare industry is increasingly moving towards a value-based care model, where reimbursements are tied to the quality of care provided rather than the quantity of services delivered. Highly engaged members who are proactive about their health help providers meet quality metrics, which in turn can lead to higher reimbursements from Medicare and other payers.
It Pays to Invest in Member Engagement
Member engagement plays a pivotal role in improving the profitability of health plans. It contributes to cost savings through improved health outcomes, increases member retention and acquisition, and supports the shift towards value-based care.
To leverage these benefits, health plan providers must invest in strategies and technologies that enhance member engagement, including personalized communication, health education, and digital tools that empower members to take charge of their healthcare. By doing so, they can ensure improved health outcomes for their members and a healthier bottom line for their plans.