Volume 7

Flu shots are an excellent way for employers of all sizes to add perceived value to the company’s benefits program and improve employee retention and morale. An added benefit of providing flu shots is that, unlike other “nice to have” perks such as concierge services or discount tickets to local attractions, flu shots prevent a highly contagious illness and increase employee attendance and productivity during the winter months. Influenza is one of the leading causes of absenteeism from work. The flu typically lasts several days, with cough and malaise persisting for two or more weeks. Each year, up to 111 million workdays are lost due to influenza, costing US businesses more than $7 billion a year in sick days and lost productivity.

This is the 10th anniversary issue of ArlenGroup's Insight Newsletter. For 10 years, Insight has helped employers stay informed about issues affecting health and welfare plans -- from the latest trends in benefits to laws, regulations and hot topics in the benefits arena.

The cost of providing an on-site flu shot clinic is low enough that most employers will be able to provide this service to employees at no charge. However, even if the employer charges employees a nominal fee, the convenience of having this service available on-site–and the resulting health benefits–will ultimately result in a positive experience for both the employer and employees.

When should employers start looking for flu shot vendors?
The sooner the better! Most vendors begin registration for clinics as early as June and may offer discounts for early registration. Flu season in the US generally lasts from November until April, with peak activity between late December and early March. On-site clinics can be scheduled anywhere from mid-October to late-November and continue as late as February. However, many vendors limit the number of clinics offered per season so interested employers should register as early as possible.

What should employers look for when comparing vendor proposals?
When selecting a flu shot vendor, employers should consider how each vendor would best suit the needs of their employee population. Most vendors require a minimum number of flu shots ranging anywhere from 20 to 50 participants per location. If an employer has several sites, they should ensure the chosen vendor is able to serve each location.

Some vendors offer advanced services such as an online website for employees to schedule their own appointment at the on-site clinic. Keep in mind most vendors require an exact estimate of flu shots at the time of registration for the on-site service.

With certain vendors, both standard flu shots and FluMist™, a new nasal spray influenza vaccine, are available.

Can the cost be negotiated?
For the most part, costs are set competitively based on the overhead costs of nurses, supplies and communication materials. Subsequently, there is little room for negotiation; however, the more participants involved in the flu shot clinic, the lower the base cost per shot. In addition, administration fees may be waived after a certain number of shots ranging from 50 to 100.

Another point for negotiation is if a mid to large size employer has several locations with a range of employees. Smaller locations may avoid paying higher rates for fewer employees if a vendor will provide the same rates offered to the employer’s larger locations.

Sample marketing analysis
ArlenGroup has prepared a sample marketing analysis that compares pricing, supplies, locations served and contact information for several established flu shot vendors. The vendor comparison may be customized to suit the particular needs of your employee population. Based on census information, ArlenGroup can calculate the minimum and maximum costs of providing on-site flu shot services to one or more employer locations. With this marketing analysis, employers will be well equipped to select the best vendor for their employees.

For More Information
For more information about implementing a flu shot program, contact your ArlenGroup Associate.

This document is not intended to provide any legal advice or analysis. Please consult your own legal counsel for further information on the topics discussed in this issue of Insight.