Recap: Employee Benefit News - $10M Guaranteed in Annual Healthcare Savings: Strategies for Implementing Centers of Excellence

March 12, 2025

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World Class Health

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Healthcare costs are rising, transparency is improving, and Centers of Excellence (COEs) are emerging as a beacon of quality and cost control. Here’s what benefits professionals and HR managers need to know from the latest EBN webinar. 

The recent EBN webinar, featuring Dr. Kumar and Jarrett Michau from World Class Health, explored the critical challenges and opportunities facing modern healthcare benefits. With rising costs, the growing importance of transparency, and the role of Centers of Excellence (COEs), the discussion provided key insights into how organizations can transform their health plans to benefit both employers and employees.

Read on for a detailed recap of the discussion, including actionable strategies shared during the webinar.

The Transparency Problem in Healthcare 

One of the biggest challenges facing employers today is the lack of transparency in healthcare pricing and outcomes. According to a poll conducted during the webinar, 89% of participants said they do not have sufficient information to make informed decisions on cost and quality within their health plans. 

Why Transparency Matters 

Dr. Kumar outlined some critical issues caused by poor transparency: 

  • Opaque Pricing: Employers and patients often don’t know the actual costs of procedures ahead of time. For example, the cost of the same medical procedure can vary drastically between hospitals—from $10,000 to $30,000 for the same care. 
  • Surprise Bills: Sticker shock from unexpected medical bills affects both employees’ financial security and overall satisfaction with their benefits. 
  • Fiduciary Responsibility: Employers, as stewards of their health plans, may face legal and ethical obligations to ensure employees get the best value for their healthcare spend. 

There’s good news, though. The U.S. healthcare system is moving toward better price transparency, driven by new legislation for hospitals and insurers to disclose pricing details. However, implementation has been challenging, with early efforts suffering from poor standardization and inconsistent reporting. 

Dr. Kumar emphasized that while transparency is improving, there’s still work to be done. “The world is moving toward more transparency,” he explained. “And that’s where COEs come into play as a solution.” 

Centers of Excellence (COEs): A Strategic Solution 

Centers of Excellence (COEs) have gained traction as a strategy to improve healthcare outcomes while reducing costs. These programs focus on developing curated networks of high-quality providers that deliver better care at predictable, bundled rates. 

During the webinar, 63% of participants said they are currently using or planning to adopt a COE program, underscoring the growing interest in this approach. 

What Makes COEs Powerful? 

Jarrett Michau broke down the three pillars of COE success: 

  1. Transparency: COEs provide clear, pre-negotiated bundle rates, making it easier for employers and employees to understand costs upfront. 
  2. Quality: The curated network ensures employees receive treatment from providers with proven expertise, resulting in better outcomes. 
  3. Cost Savings: By reducing variability in pricing and avoiding unnecessary procedures, employers can achieve significant savings while enhancing the care experience. 

To illustrate the impact, case studies from the webinar showcased impressive results. One technology company saved $15 million annually on healthcare spend by introducing a COE program, while also improving patient outcomes and sharing $3.5 million in savings with employees. 

Building Utilization: How to Make COE Programs Work 

Adopting a COE program is only the first step. Ensuring employees use these services is critical to realizing the benefits. Both Dr. Kumar and Jarrett highlighted strategies for driving COE utilization: 

  1. Proactive Member Outreach: Communication is key. Employers must educate employees about the benefits of COEs early, ideally before they even consider a procedure. Tools like targeted email campaigns, FAQs, and benefit orientations can help spread awareness. 
  2. Financial Incentives: Offering generous financial incentives, such as eliminating out-of-pocket costs for COE care, motivates employees to choose these high-quality providers. Jarrett pointed out that even small gestures, like covering travel expenses, can make a big difference. 
  3. Plan Design Adjustments: Employers can adjust benefit structures to encourage COE use, such as higher coinsurance rates for non-COE providers or mandating COEs for specific procedures like transplants or bariatric surgery. 
  4. Personalized Support: Leveraging data to provide personalized recommendations and care navigation helps guide employees toward the best options. Dr. Kumar shared that outcomes improve significantly when employees connect with specialized providers who closely match their needs. 

Expanding Benefits Beyond Cost Savings 

While COEs deliver measurable cost reductions, they also enhance the employee experience. Dr. Kumar noted that navigating the traditional healthcare system can be frustrating due to delays, lack of guidance, and confusion over bills. COEs, on the other hand, streamline the process by offering concierge-level navigation and support. 

Additionally, COE care is associated with improved health outcomes, including significantly lower readmission rates. This combination of financial benefits, reduced stress, and better care makes COEs a true win-win for employers and employees alike. 

Actionable Insights for Benefits Professionals 

The EBN webinar delivered several clear takeaways for HR managers and benefits professionals looking to maximize the value of their health plans: 

  • Start with Transparency: Evaluate your current health plan’s cost and quality data. Better insights can inform smarter benefits decisions. 
  • Consider COEs: If you haven’t already, explore a COE program to reduce costs and boost quality. Remember to prioritize employee-centric design features like waived copays and clear navigation. 
  • Communicate Effectively: Invest in targeted communication strategies to ensure employees are aware of and understand the benefits of COEs. 

Taking the Next Step 

Now is the time to rethink your healthcare benefits strategy. With rising costs and increasing demands for transparency, implementing solutions like Centers of Excellence can help your organization stay ahead. 

Looking to build or optimize a COE program for your employees? Reach out to learn how World Class Health can support your goals with best-in-class networks and guaranteed savings. 

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