It is health insurance renewal time again. You mull over a couple of options provided by your loyal and trusted broker. Once again your premiums are going up, and will need to make room in your budget for the increase. This pattern of increasing costs is only going to continue year after year. You ask yourself, “Why does my medical health plan cost keep going up?”
For most companies, medical costs are the second largest budgetary expense, next to payroll. What if you could decrease medical costs? You could budget more for advertising, production, inventory, research and development, building space. You name it. The truth is the cost for providing health insurance is also rising faster than salaries.
The following chart, recently published from Forb , cesontains the annual increase for health insurance premiums and real personal income.
Each year that health insurance premiums rise faster than income, there is less money to save or spend. Employees are facing higher premiums, deductibles, and co-pays. As a result, Americans may take fewer vacations or save less for retirement. It is estimated that 20% of working Americans will struggle with paying for healthcare related expenses this year.
The sad truth is that no hospital, doctor, pharmaceutical company, insurance carrier, or PPO network is financially motivated to assist you in decreasing your health plan costs. That’s why the players in health care industry won’t fix cost of providing health care. If you are tired of waiting on industry or government help, then keep in mind this quote by Dr. James Robinson, professor of health policy at the University of California, Berkeley, “The only way to pay less for health care is to pay less for health care.”
The Open Solution™ is how you can pay less health care without disrupting the benefits to participants on the group plan. The Open Solution™ is the collaboration of multiple high-powered cost containment strategies. These proven approaches will substantially reduce the costs of providing health benefits to your employees. The plan gives organizations control over the price they pay for healthcare and employees the freedom to choose which providers and facilities to use.
The Core Cost-Containment Strategies
- The Open Solution™ includes partial self-funding with stop-loss insurance for control and protection.
- We replace network discount plans with the open solution auditing and re-pricing formula for massive savings, which allows you to see any doctor or visit any facility.
- Medical management and ongoing support reduces the cost of care and prevents emergencies for employees with chronic conditions.
- An experienced third-party administer coordinates all the pieces.
The results with The Open Solution™ has been ending annual rate increases, and in most cases lowering premium rates without reducing any benefits.
Here are some specific examples with our clients:
- Texas Service Company- Dropped Blue Cross PPO and reduced their premiums by 68%.
- Additional savings allowed the company to provide free vision, dental, and life insurance and establish a free medical clinic on-site for employees and their dependents.
- Large Western Tribe- Reductions were so dramatic that rates were lower in 2014 than when they were in 2008. Saving millions of dollars allowed the tribe to add even more participants to their plan.
- Utah Call Center – Insuring nearly 100 employees the company switched to The Open Solution™ from a fully insured plan. Medical cost savings are exceeding 25%.
The Open Solution™ will decease your annual health plan costs, and create a medical surplus. If you are involved with a multi-state business you no longer need to juggle multiple insurance carriers, plans, and restrictive networks.