By Evan Falchuk

Following my earlier webinar, I said I would be doing a series of Q&A’s with benefit executives from some of the country’s most innovative companies.  The first one features the insights of Delia Vetter, Senior Director of Benefits of EMC Corporation. She shared her views on employee benefits, health care IT, and how an important company like EMC thinks about the hottest topics of the day.

I think you’ll find her thoughts very interesting.

Delia Vetter, Sr. Director of Benefits, EMC

Evan:  What is EMC’s philosophy on healthcare for its employees?  Do you see it as a burden, just another part of the benefits package, or a competitive advantage in the marketplace?

Delia:  To be competitive in the marketplace, you have to offer a good benefits package. Our philosophy and strategy is to manage costs through better overall health management.  We look to create a culture of health—a healthy environment and behavior that’s beneficial to the employee’s health. Additionally, we make a concerted effort to re-educate employees across the healthcare spectrum through advanced technology and a multitude of programs that are employee/patient centric.

Evan: So when you talk about education, is employee health and wellness an issue?  What works and what doesn’t work to address that?

Delia: We don’t do arbitrary benefit programs. We use data on the aggregate, so we understand the health of our population and how much we spend for each disease and situation. We are data rich. So we understand to the nth degree the types of programs our employees need. We know the top 10 diseases, the top 10 medications, etc. so we can tailor our programs to the population that needs them the most.

We are constantly inquiring about our population’s needs. One example is an autism program where we brought in an expert to speak to employees. After the program was completed, employees gathered and formed a support group. This shows how benefit programs not only help build community within your company, but also build sub-sets of community. Over the past seven years we have made it a goal to create the right culture. Yes, we can offer health plans. Big deal. You negotiate, you roll out the health plans, and you’re done. However, the part that’s the most powerful is to develop the right programs and culture so you really create an environment of health management.

Evan:  How big of a problem are health care costs for EMC?  Given how data rich you are I bet you have some sense of what drives those costs.  Do you have programs that have worked to control costs?

Delia: Costs are an issue for everyone. Our goal is cost containment through managing the health of the workforce, not from shifting costs.  We are managing cost containment through good health management and the use of technology for education.  We also offer personal health records (PHRs) that stay with employees. With the help of programs like Best Doctors and others that create a healthy workforce, we can take a holistic view in managing the health of our workforce. As a result, we have contained costs and are way below the national average. We are able to contain costs through the use of technology and integrated, targeted programs that meet the needs of employees.

It is critical to educate your population, not just about benefits, but also about healthcare as a societal and corporate issue; as a personal issue.  You have to educate them on quality and better outcomes.  We’ve been on that path for seven years.  When you look at the plan President Obama has on the table, it’s very much in line with what we are already doing.  This big transformation that’s being discussed in the media and in blogs will happen when employers start looking at managing corporate assets and lives, not managing the structure of a plan.

Evan: Now, at the level of the individual employee, are there common concerns you hear about the health care system?  Is it cost?

Delia: The most common concern we hear is how to navigate through the healthcare system and how to understand it.  Employee issues are not about access. It’s more about “where do I turn if I have an issue or don’t understand what to do.” That’s the most common concern or complaint. As an employer, we are constantly thinking about and discussing what types of programs can we offer to help.

In addition, increases in prescriptions or other costs are of concern. However, we have not cost shifted, so our employees appreciate that.  We educate them about the true cost of healthcare. Our PHR helps us educate employees in order to get them past entitlement and help them understand the real cost.  So within the PHR, the employee inputs the healthcare services they received, or the prescriptions they filled. It calculates for them the real cost of care with full transparency.  Then we show how much the employee paid out of pocket.  When they see that, there is a whole new level of appreciation.  Once employees make that connection, they really appreciate the benefits they are provided.

Evan: What are the big trends in the next 2-3 years as it relates to employee benefits and health care?

Delia: We should look towards the Obama Administration as they start to push employers to become more focused on managing workforce from a lifestyle perspective. Additionally, employers absolutely need to invest in technology that drives consumer behavior like PHR.  So over the next six months, I think there will be a shift in thinking.

When it comes to employee health, employers typically don’t worry about it. Their mentality is, “this isn’t something I should worry about. Let the health plan worry about that.” Well, that’s antiquated thinking.  As benefits professionals, we impact the bottom line.  You can’t let someone else manage your dollars. You need to take matters into your own hands. It’s about you as a professional, managing your business and managing your funds. Your health plan is a good partner, but they should not be driving cost efficiency. Employers need to take that on. I think that’s the big shift we’ll see very soon.

Evan: With this and all the other things happening in health care are you planning any big changes?

Delia: What we’re focused on now and what we will be focused on in the future, is the next generation of personal health records.  In terms of plans and plan design, I don’t foresee any changes. We need to continue to illustrate to employees that health benefits are a shared accountability. As a reward for that, we’ll keep things static.

Our focus is on evolving the personal health record to help employees better manage their care and navigate through the system.  PHRs today gather a lot of information like lab tests and help us eliminate redundant tests. Imaging will also be big addition to the PHR. We’re looking to eliminate costs by eliminating waste in the system; creating a system that is patient friendly or patient centric.  It costs valuable time and money for an employee to participate in an inefficient health system. Why subject yourself to more blood work or another x-ray when it’s all there in your personal health records? In short, managing your personal health should be as easy and hassle-free as managing your online bank account. At EMC, we look at our employees as critical assets to our success and in order to be successful, we need to keep them happy and healthy.