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Health Agencies Update
December 19, 2001

Employers and Insurance Quality

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JAMA. 2001;286(23):2934. doi:10.1001/jama.286.23.2934-JHA10013-2-1

After years of data collection and development, the National Committee for Quality Assurance (NCQA) has delivered an online tool to model cost savings for employers that choose high-quality health insurance. For example, the model reports that a financial services company with 7000 employees would save $155 >000 in sick wages and $120 000 in replacement worker costs, per year, if it offered NCQA-accredited health plans instead of nonaccredited plans. According to the NCQA, "the employer would see related benefits such as lower direct medical expenses and higher employee morale." The savings, says the NCQA, come from better control of illnesses and chronic conditions.