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Friday, February 13, 2009

Wal-Mart health plans may be a model for reform

The recession and rising health-care costs have made providing affordable coverage more difficult, but Wal-Mart's recent turnaround on the topic has gotten the attention of federal policymakers.

After years of stinging commentary regarding its stingy coverage for employees, Wal-Mart's decision to implement new strategies like ones aimed at preventive care have paid off, reports Ceci Connolly of The Washington Post. "New figures being released today show that 5.5 percent of its employees now lack health insurance, compared with a nationwide rate of 18 percent," writes Connolly. (Post photo)

The cost of the program is still scrutinized, since employees are charged significant sums for coverage, and Wal-Mart cautions that it can't afford the average 8 percent annual increases in costs indefinitely. But the changes Wal-Mart has made, including introducing digital records, generic prescription drug savings, a partnership with The Mayo Clinic, and targeting health problems like obesity and premature births, are what "experts say will lead to higher-quality, more efficient care," Connolly reports.

Most Wal-Marts are located outside major metropolitan areas. Linda Dillman, the company vice president overseeing the health care plan, told Connolly, "This is like the national discussion. First you've got to get them [people] in the plan, then figure out how to help them take care of themselves, stay healthy and get the care they need." Read more.

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