All investments should have a positive return, especially the investments you make in your employees’ health. Most fully-funded healthcare plans, however, have high costs and no direct returns for employers.
Self-insured policies try to control the costs and mitigate the downside risk. Wellness plans can have a positive return, but the return usually comes in the long run. Telemedicine is the only healthcare benefit that can produce a positive return starting in the first month.
This benefit diverts unnecessary ER, urgent care, and physician office visits, thereby saving both the employer and the employee money. These savings compound over time and, if utilization is achieved at or above about 35%, the savings from the diverted visits should exceed the costs of the telemedicine benefit.
To fully understand the impact, let’s put some numbers down.
1,000 employees, 35% utilization
A company with 1,000 employees should generate at least 350 telemedicine consultations annually. Ninety percent of all telemedicine consultations (315+ in this case) should result in a diverted in-person physician visit. The breakdown goes something like this:
# of Outcomes
Avoided ER Visits
Avoided Dr. Office
Avoided Urgent Care Visits
No Change in Outcome
Projected Annual Savings = $103,043
It doesn’t take a CPA, a CFO, or a wannabe Ben Stein to realize that meaningful savings from telemedicine are not only possible but attainable. When you partner with a telemedicine company that has a savings guarantee (where we promise to save more money than the benefit costs) it becomes a no-brainer.