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Six Sigma
What leaders should know about change

Regardless of a healthcare plan's design, any change will create organizational resistance. The value of change management is to achieve and optimize results by not overlooking the importance of gaining acceptance. Consumer Driven Healthcare Plans (CDHP) are one trend in which employees - not the company or insurance provider - determine how and where to spend their healthcare allotments. Companies that implement CDHPs often underestimate the degree of change expected. Employees must learn new:
  • Terminology (e.g. premiums and co-pays)
  • Behaviors (e.g. enrollment decisions)
  • Processes (e.g. working with vendors, claim forms)
  • Tools and technology (e.g. modeling tools, web-based training)
Companies adopting a CDHP model or any major change in healthcare benefits must apply four critical success criteria with discipline and persistence:

#1 - Understand the Business Case

Companies must make a commitment to help employees understand the reasons for change, but those messages shouldn't come only from HR. Business leaders in all areas of the organization should lead the charge about communicating the "why's" and "how's" about the change to engage employees and gain acceptance.

#2 - Understand the Plan Options

CDHPs require behavioral change among employees which impacts a company's technology, processes, and culture. Companies must offer a robust learning system with multiple methods of training and education. Employees should also be motivated to gain new skills through a reward and incentive system.

#3 - Be a Well-Informed Healthcare Consumer

Companies must be committed to providing communications, learning and reward opportunities early and often to ensure that all participants have the knowledge to make the right decisions for themselves and their families.

#4 - Create a Solid Infrastructure for Change

New open enrollment periods give employees the opportunity to change their plans, so it is critical to create a sustainable, efficient and repeatable approach to implementation. Companies must ensure the right resources, governance structure and approach are in place so ongoing change is successful.

Adding Up Change
  • Employer-based health insurance premiums rose 9.2% in 2005, the 5th straight year of increases more than 9%
  • Annual premium a health insurer charges an employer for a plan covering a family of 4 averaged $10,800 in 2005
    -- 2006 National Coalition on Healthcare Fact Sheet
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Copyright ©2007 LaMarsh and Associates
Artwork by: K. Judge