Since the launch of this blog site earlier this year, the majority of posts have been focused on compliance issues. This week, I’m changing things up, and shifting the focus to strategies that can help employers and employees REDUCE the cost of their health insurance. These strategies are not merely theoretical, conceptual ideas, but rather, time tested and proven ways to reduce the cost of health insurance. And depending on the type of coverage you offer today, there may be no better time than NOW to consider making some changes!
Unlike any other form of insurance, health insurance has a high claims loss ratio. In fact, approximately 80 cents of every dollar of premium collected is paid back out in claims to the policyholder. (Note: The Affordable Care Act includes a provision known as “minimum loss ratio”, or MLR, which requires health insurers to pay out 80% or 85% (depending on the size of the insured company) of every dollar of collected premium in claim benefits, or rebate the shortage.) Health insurance is expensive because health care is expensive, and becoming ever increasingly so. There are a number of strategies that employers can consider to reduce the cost of health insurance. Here are ten (10):
I recently came across a great article from Kaiser Health News that discusses a number of employer strategies being considered and deployed. Click – http://www.kaiserhealthnews.org/Stories/2013/September/17/employer-sponsored-health-insurance-trends.aspx?utm_source=khn&utm_medium=internal&utm_campaign=skybox