There’s a problem with group benefits: an affordability problem, one we’ve written about before. In health care, inflated costs aren’t the exception, but the rule. Do you know the PPO Network contract your carrier wrote with their medical groups and hospitals has cost increases built in? (We call this “raises” – they call it “medical trend.”) What the label, the outcome is the same: A disadvantage given to the employer and an advantage given to medical providers and hospital groups.

If you are open to exploring a winning game plan to harness your health care costs, READ ON!  On the other hand, if you choose to give up and hope that your insurance carrier has your best interests at heart then stop complaining and continue to budget to 7 to 9 percent annual increases.

Still thinking about that game plan? Let’s see what your future could look like:

  • Pay for what you need. Don’t pay for what the insurance company predicts or budgets for your health care costs. Get a group health plan that works like an electric bill. If you use less electricity (or medical treatment) than your neighbor, you pay less!
  • Control the design. Design your own group benefits plan based on your team’s needs. Like buying a car, if you don’t like what you see on the lot, you build your dream car and order something that perfectly suits your company.
  • Experience complete cost transparency. Don’t take it for granted that you are getting the best and biggest discounts on your medical costs because you use your carriers’ in-network doctors and hospitals. There is still money to save!
  • Price check the market, negotiate the lowest possible costs. Get doctors and hospitals to compete for your business. Stop accepting whatever the doctor or hospital wants to charge. Which side do you think they’re on?
  • Understand and manage your medical costs. It’s no different than your company’s financial expenses. If you use a medical P&L, you can adjust and reallocate as needed.
  • Take control of your group benefits renewals. Yes! Renewals at 2 to 2.5 percent are possible.

The old ways will not lead to a brighter (or lower cost) future. If you are serious about bringing down your health care costs and want to take control of the cost influencers, you must make a pivot. There is no other option.

At BeaconPath, we bring Brighter Solutions for Better Performance. That said, you don’t have to go it alone. We will do everything we can to make sure you achieve the savings you’re looking for. Count on us for headache-free and bottom line-friendly benefit administration assistance. Contact us today to learn more or subscribe to our blog below to stay in touch.

Leave a Comment