Management Employer Health Strategy Employers
Employers have a strong interest in employee health beyond
their immediate financial responsibility for the cost of employee health insurance and other benefits. The health of an employer’s workforce greatly affects the organization’s productivity and profitability, and the cost of absenteeism and illness on the job far outweighs the cost of health benefits. Some employers have started to understand their shared interest in employee health, and have begun to view health benefits and wellness programs as a key to success rather than a burden.
Case: Pitney Bowes: Employer Health Strategy Michael E. Porter; Jennifer F. Baron Product #: 709458-PDF-ENG Pitney Bowes, a Fortune 500 mail and document management firm, offered its first health plans in the years following World War II. Over the ensuing decades, Pitney Bowes adapted its approach to employee health amid rising health care costs, shifting employer attitudes towards health benefits, and a rapidly changing policy environment. By 2008, the firm was widely regarded as an innovator in employee health, having dedicated substantial time and resources to its health benefits under the leadership of then CEO Michael Critelli and Corporate Medical Director Jack Mahoney. The case provides an overview of the history of employee health benefits in the U.S. and at Pitney Bowes. The range of health plans Pitney Bowes offered to employees in 2008, as well as the firm’s
contracting policies with commercial insurers and self-insured plan administrators, are examined in detail. Pitney Bowes health and wellness programs are also described, enabling an analysis of the firm’s overall employee health strategy in 2008 and a discussion of where Pitney Bowes should focus its attention moving forward.
Learning objective: Employer health strategy. Subjects Covered:
Employee benefits; Health care policy; Health insurance; Wellness programs; Workplace health & safety Setting:
• Geographic: Connecticut
• Industry: Health care services
• Industry: Health insurance
• Company Employee Count: 36000
• Company Revenue: $6 billion
• Event Year Begin: 2008
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