Making medicine hurt less
The medical practice, which includes
The premiums
The industry standard is that 85 percent of insurance premiums go for medical care and plan administration, leaving 15 percent for profit. Catalyst cut that 85 percent figure to 52 percent and believes it can get it lower.
"Our savings have been pretty phenomenal," Schlactus said.
The achievement follows a comprehensive analysis by Schlactus, fellow
It pays most of the medical costs of those it covers out of premiums and carries extra policies that kick in for severe illnesses and accidents.
"You have to manage your risk," Schlactus said.
Catalyst started with incentives for employees to shift from a plan that had a
Catalyst covers 100 percent of the premiums for nonsmoking employees who opt for the higher-deductible plan. Smokers pay
This year those employees also are receiving an additional
Plus, in a move Schlactus compares to adding steak knives to an already fantastic deal, all employees on the high-deductible plan get
The money isn't taxed as long as it is used on expenses permitted by the federal rules that govern the account. If employees don't need it one year, it can roll over into the next year and build until they retire.
"It's theirs for life," he said.
Catalyst still has a plan with a
Once that change happened, the volume of employees using the low-deductible plan dropped from 90 percent to 10 percent.
More importantly, the restructuring forced employees to begin paying attention to medical expenses the same way they do household expenses like groceries, Schlactus said.
"We've encouraged people to become shoppers," he said.
Administrators at Catalyst provided guidance. They offer the lowest co-pays at
They encourage employees to use an online tool of Regence BlueCross of
Where generics don't work or aren't available, Catalyst contracted with a
This year, Catalyst is taking its approach further. Employees pay
The assessment includes measuring blood sugar, cholesterol, blood pressure and the ratio of the width of the hips and waist. Employees who have metabolic syndrome are required to meet with a health coach, but don't pay a financial penalty.
So far, everyone has opted for the screening, Schlactus said.
Catalyst is finding people alter their behavior once they have data about what is going on in their bodies, said Dr.
Patients battling high blood sugar, for example, typically stop eating as many cookies if they are given monitors that show them what happens to their blood sugar when they consume sweets.
What Catalyst is learning is already being used to help its patients.
In one instance, it looked at the price of prescriptions for a single name-brand drug.
Catalyst saved
More generally, Catalyst has made it easier for its physicians to prescribe generics by giving them faster access to data that compares name-brand drugs and generics.
"A physician can click a button (on a laptop) and get this information in the patient room," Dykstra said.
Catalyst plans to continue innovating, looking for ways to provide equal or better care at lower costs.
The key, Dykstra said, is aligning the interests of the patients with their health care professionals and their insurance providers.
Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.
___
(c)2019 the Lewiston Tribune (Lewiston, Idaho)
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