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Pitney Bowes: Employer Health Strategy Case Study

19 September 2014 By In Blogs


In the “Pitney Bowes Pitney Bowes: Employer Health Strategy Case Study”, the case discusses the history of employee health benefits at Pitney Bowes and the general U.S. It examines the range of health plans offered to employees in 2008 by Pitney Bowes and its contracting policies with bothself insured plan administers and commercial insurers. The case also describes the health and wellness programs at Pitney Bowes to enable an analysis of the firm’s 2008 overall employment strategy. The case also discusses areas in which Pitney Bowes needs to focus on to move forward. Today, the firm is a national leading innovator in programming and measurement of the health and wellness initiatives of employees. The firm has an integrated approach in providing value based health care that focuses on preventive care, combating care delivery barriers and providing resources to empower employees to control their health.


The major components of Pitney Bowes' strategy for employee health

There are four main sectioned focused on in the Pitney Bowes’ employee health strategy. These are, heavy investment in the employee health management staff, shaping plans and programs through data, preventive care to improve wellness through low cost treatment of chronic diseases and flexibility to employees (Porter and Baron, 2006). Pitney Bowes always saw the well compensated benefit staff as an investment since other companies with less overhead costs had very high health care cost compared to it. The firm believed that the bottom line was always affected by the employee health management. As such, it aimed at improving its outcome through reduction of costs. The firm also believes that the up- front investment is definitely offset by the lower health care costs. Through the use of the large employee health management, the firm has followed a data driven approach to manage its plan and program. The firm does its assessment through collection of data from various sources to optimize its plan in order to meet the need of its employees. In its effort to become effective, the firm came up with a software algorithm to foresee healthcare costs. Through extensive analysis, the firm prioritizes its healthcare management efforts with the goals of the company, which include prevention, reduction of healthcare costs and low staff absence due to sickness. The firm’s plans focuses on comprehensive prevention and treatment including chronic disease management and mental health treatment.

How Pitney Bowes' employee health and wellness programs add value

            With the introduction of the employee health and wellness program, there is increased productivity at work due to a healthy workforce. Health of the employees was improved through the strategy while at the same time regulating spending. The firm sought a complete configuration of incentives between the plans, providers, employees and the company. The organizational health culture and the bottom line of becoming productive are linked. As such, the initiatives have helped the firm to save millions and become a pioneer in maintaining the health of employees. The firm now has resources that help the employees to control their own health before they become illMahoneyand Hom, 2006). The measures employed by the firm keep employees healthy. They also reduce health care costs and address early sign of diseases. As a result, a high number of employees are retained at the workplace thereby improving the outcome of the firm. There are also onsite clinics that improving the preventive care further. With onsite clinics, there are few disappointment from staffs who fail to work due to health related disappointments. Additionally, there is a better utilization of the services on preventive care. At the firm, the programs make sure that the employees are maintained in a healthy state other than treating them when they fall sick. The flexibility of the healthcare benefit options for employees allows adoption of the diverse employee population whether corporate or subordinate. There are variety of the wellness initiatives by the firm including education on nutrition, stress management programs, weight control programs and other resources on behavioral health.

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You are here: Home Blog Pitney Bowes: Employer Health Strategy Case Study