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A case study: lessons from a two-year-old point of service plan
Business and Health
|March 9, 1992
Summary
Marriott achieved significant savings by implementing a point-of-sale (POS) plan. This initiative offered employees more healthcare choices, effectively controlling rising costs.
Area of Science:
- Business Administration
- Healthcare Management
- Employee Benefits
Background:
- Rising healthcare expenditures pose a significant challenge for large corporations.
- Employee benefit plans require strategic management to balance cost containment and employee satisfaction.
Purpose of the Study:
- To evaluate the financial impact of a new point-of-sale (POS) healthcare plan at Marriott.
- To assess the effectiveness of employee choice in controlling healthcare cost increases.
Main Methods:
- Analysis of financial data pre- and post-implementation of the POS plan.
- Review of employee participation and healthcare utilization under the new plan.
Main Results:
- Marriott reported savings of $5 million attributed to the POS plan.
- The plan successfully contained health care cost increases.
- Employees experienced greater choice in their healthcare options.
Conclusions:
- Implementing a POS plan with enhanced employee choice can lead to substantial cost savings.
- Strategic benefit plan design is crucial for managing corporate healthcare expenses.
- Employee empowerment in benefit selection can positively influence cost containment outcomes.