Can you escape the crushing spike in healthcare costs? Health insurance premiums are going up for most companies, and in many cases the increase is significant. In fact, according to Milliman, healthcare costs in 2016 for a family of four averaged $25,826. This is triple what it was in 2001.
But let me demystify things because not only should your company’s premiums not go up, they can and should go down!
Myth: We can only change plans during open enrollment.
Fact: You can change plans anytime – especially if it saves you money!
Myth: If there was a better plan for us, my broker would have told me.
Fact: Brokers might not tell you about solutions that don’t offer commissions.
Myth: Busy CEOs don’t have the time to understand healthcare
Fact: An expense this significant warrants the CEO’s direct involvement
Myth: We should trust our broker and trust the system.
Fact: Traditional insurance is a rigged system. With commissions influencing broker recommendations, companies are the last to benefit.
If you are open to using a consulting firm like DCI and not a traditional broker, there are some effective ways to cut your healthcare premiums by 30% or more.
Here are 7:
- TRUSTS AND VEBAS are only accessible to certain brokers and help companies under 200 ee replicate current benefits at a 20% to 40% lower cost.
- FULLY SUBSIDIZED WELLNESS PLANS reduce claims 20% long term at no cost to the employer.
- TECHNOLOGY THAT AUTOMATES BENEFITS suits a workforce that books their vacations via smart phone, eliminating the need for your HR department to play “travel agent.”
- LEVEL FUNDING (hybrid or partially self-insured) reduces carrier profit margins and risk charges. It also eliminates the 3% insurance state tax.
- REFERENCE-BASED PRICING sets pre-negotiated pricing in certain networks that accept 140% to 200% of Medicare payments in exchange for timely payment and eliminates dependence on PPO “discounts.”
- CONSUMER DIRECTED HEALTH PLANS give employees financial incentives to make decisions that drive down employer costs. Examples include free telemedicine, free generic drugs, and subsidies to employees who join their spouses’ plans.
- HEALTHCARE COST AUDITS provide feedback based on dynamic market conditions and assurance that no errors have been made that would result in higher costs to employers.