At the end of the day, the only people who have any control over your healthcare costs is you and your employees. What steps can you make to help lower costs for insurance and overall healthcare spending?
The 80/20 rule states that an insurance company must spend 80% of your overall premiums on actual care, and only 20% toward administrative costs. In essence, if your overall healthcare spend from the insurance company is $80,000 for your group, the insurance company can charge you $20,000 in administrative costs for a total of $100,000 in premiums annually.
What if you could reduce your groups use to $60,000? Then the insurance company could only charge you $15,000 in administrative fees and your overall premium would only be $75,000 for your group.
But how can I reduce my groups overall usage? There are many ways to achieve this. It starts with education. Making your employees smarter consumers not only saves them money but also removes barriers to care which might make them wait til their condition has gotten worse and requires more expensive treatment.
Also, implementing the right programs. Telemedicine, HSA's, FSA's and HRA's are great programs to help reduce overall spend today and in the future. Pairing a HDHP (High Deductible Health plan) with an HSA, FSA, HRA or limited med program can often result in better coverage at a lower price!
Contact us today to set up a no obligation consultation on what you can do to reduce healthcare spend for the future and today.