PayFlex Engage Health and well-being: Part of the purchasing power conversation
Purchasing power and well-being
What is purchasing power?
Purchasing power is one’s ability to buy things within one’s means in the short and long term, while also being financially prepared for emergencies. This means everything from regular day-to-day living costs, little (and maybe not so little) surprise expenses, and being able to invest in future financial, physical and emotional health.
Purchasing power also means having the ability to:
What is health and well-being?
Simply put, health and well-being are a sum effect of a person’s physical, mental and emotional health. Each element is vitally important to one’s overall life satisfaction and happiness. So is one’s financial stability. In uncertain health times, it’s important to us to know we can take care of our needs without relying on credit cards or help from family. Such self-reliance gives us feelings of empowerment and peace of mind. It can help reduce the stress that comes with financial insecurity.
Purchasing power needs to include health and well-being.
When we talk about purchasing power and how it can enhance our lives, health and well-being must be part of the discussion. We’ll talk about:
Ignoring the potential impact of the costs of health care on our lives will only lead to stress down the line for ourselves and our families. Let’s talk real numbers to gain some perspective.
What does all this mean?
The daily financial burden of health care is felt by nearly all Americans. So it must be part of any conversation about purchasing power and financial wellness.
The final reason to keep health and well-being in conversations about purchasing power is that health care costs can be unpredictable. Sometimes unpleasantly so. And that can lead to unplanned and often significant financial obligations.
This can be due to the complexity of benefits, bureaucracy in claim filing or lack of health literacy among members. These factors may make it difficult for them to understand how they can better use their benefits to plan and save for health care costs.
In the day-to-day as well as the long term, being healthy costs less than being sick. Period. The right mindset, along with the right guidance — encouraging healthy behaviors among employees — can improve their short- and long-term health, and therefore improve their purchasing power. Programs that make it easier for employees to put money into being healthy now, rather than later, can go a long way in improving their purchasing power.
First, let’s look at some real examples of how being healthy saves money.
Those statistics are interesting, but how can we encourage employees and promote healthy behavior? It can start with investing in the right preventive care program.
The best programs actively seek to avoid or minimize health conditions. And that can save money in the long run. For example, a study testing the return on investment (ROI) of a personalized prevention care program found fewer emergency room and urgent care services were used over the study’s three-year span. To enjoy these personalized preventive care services, participants had to pay $150 per month. Yet most individual members realized a net cost savings within a few years. More gains were expected as the years went on.12
Ultimately, if you can help employees plan and save, you can help them be prepared for expected and unexpected health care costs.
This is where PayFlex comes in. We can help your company better understand the specific needs of employees and put together programs to maximize their purchasing power now and in the future.
Read our whitepaper to see how you can help grow your employees' purchasing power.
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