Wouldn’t you like to dial back the years – 10 or 12 years – when health insurance costs were half of what they are today? Rule of 72. Over that period of time, you’ve had to dramatically cost shift your increases to employees by way of increased contributions, higher deductibles, coinsurance, copay’s, and higher out-of-pocket exposures.
Think about these statistics for a minute as they relate to your employees:
- 64% of Americans living paycheck to paycheck (CNBC)
- 1/4 of Americans can’t cover a full month of expenses with savings (MSN)
- Almost 1/3rd of Americans don’t have $1000 in savings (MSN)
- 1 in 10 Americans owe medical debt (MSN)
- 58% of Americans with healthcare debt were contacted by a collection agency (Kaiser)
- 62% of Americans highlight healthcare bills as the leading cause of bankruptcy, and 78% of those had some type of insurance (Investopedia)
WHAT IF you could substantially reduce the cost of your health insurance plan so that you could lower the deductibles, co-pays, and out-of-pocket expenses to make it more attractive and affordable for your employees? Why wouldn’t you? Would that attract and retain employees?
Think about what you could do with the savings – attract and retain employees in this competitive environment with higher wages, capital improvements, technology, etc.?
- The vast majority of health insurance costs are related to 2 types of health care expenses – over charging by hospitals, and specialty drugs.
According to the latest RAND Report, commercial insurance companies pay hospitals on average about 247% of Medicare for the exact same care, yet many hospitals charge much more than that – I’ve seen some that are pushing over 1000% of Medicare for some services.
Specialty Drugs can account for 50% or more of your entire drug spend! And if your total drug spend is more than 15-20% of your total claims spend, you have problem that needs to (and can) be fixed!
We focus on reducing (and sometimes eliminating) these charges so that your health plan is sustainable and affordable for everyone. What’s needed is a re-pricing savings analysis of your historic claims data to actually determine the actual financial opportunity. We make decisions everyday in our businesses with some sort of data. If you don’t have the right data in health insurance and health care costs, how can you make the right decisions for your business and employees?
I’m here to help you sort through the noise and assemble the best program that you want for your business and your employees. Give me a call at 970-349-7707 or send me an email at [email protected] and we can set up a time to chat.
