Many health plans already cover the insurance agent's commission in the cost of the health care plan, thus companies should take advantage of the expertise and knowledge an experienced insurance agent can offer. When choosing between the many health plan options available, employers can actually save time and money by consulting with an established insurance agency before investing in medical coverage plans that best suit their employee's needs and the company's budget.
Studies have shown that one of the benefits of providing group health insurance for employees is the increased retention rate for a quality workforce. In these days of high gas prices and increased costs, offering health insurance at the workplace is a big incentive for many who cannot afford individual health insurance coverage. Investing in your company's future healthcare can increase loyalty, and overall employee satisfaction, productivity, security, and of course, employee health and fitness. The cost and options of these plans vary according to group size and the state in which your insurance company, or provider is located.
Group health insurance plans start with at least two full time employees and because of healthcare reforms, every state is required to offer this coverage in the workforce. The many health plan options vary greatly and employers have a choice in what medical coverage they can afford their budget; from basic coverage, to plans that cover preventive care and dental coverage. The many options offered in managed care plans, or HMO's, and fee-for-service plans can be very confusing.
Employers must decide how much they can invest and what type of medical services they can afford for their employees. HMO's are designed to offer reduced rates by using a select group of doctors, hospitals, and other healthcare providers. Employees must stay within that network when getting medical care. Fee-for-service or indemnity group health plans allows your employees to choose their providers. They in turn have control over their choices of doctors and specialists and many options in who they want to visit for their medical services.
A large percentage of those insured are employees which enables insurance providers to offer a variety of small and large group health coverage plans. Insurance premiums vary according to the size of the workforce and include small companies with 2-100 employees, and large companies with 100 plus employees. Larger companies have an advantage because of their size and can often select reduced premium plans that offer basic medical coverage for the employees. Some health plans have higher co-pays for the employees and only cover medical care within the managed network of healthcare providers. Other plans require higher premiums for the employer, but cover more medical services for the employee.
Investing in group health insurance for your employees is a major decision that needs professional advice and planning. A healthy and productive workforce can increase company profits and worker productivity. With an experienced and reputable insurance agent, your company can have the help and expertise to consider all the insurance options available based on your budget, the medical needs of your employees and the costs of medical services in your state. This is an important service for employers who need to comparison shop for the best health plans available for their company employees.
Employers are facing tremendous pressure today to handle the increasing costs of health care insurance. The health care insurance industry is as volatile as has been seen in more than a decade. Many employers are wondering how they can afford to maintain their benefits.
This article discusses some of the many elements contributing to these escalating costs and provides some basic strategies for employers to explore to improve the cost and benefit offering.
Health insurers are essentially repackagers of the vast American health care system. Most employer policies include physician services, hospitalization, mental health and prescription benefits.
The health insurers consolidate our disparate system to give the consumer, through the employer, a conduit to health insurance. Herein lies a part of the challenge each insurer faces. Each part of the system is seeing its' component rise in pricing.
Prescription costs lead the way with an average trend factor of around 28%. Pharmacy costs have consistently risen in the 15 to 20% range each year for the last three years says Jeff Smith of Milliman's Columbus, Ohio office.
Every carrier is faced with the challenge of changing consumer-purchasing patterns. Pick up any magazine and see the many advertisements that attempt to compel the consumer to ask their physician for a prescription by name. The patient and not the physician now often facilitate the prescription purchase. This changing purchasing pattern is dramatically altering pricing. The average percentage increase for small employer health insurance is between 14-15%. The prescription component is heavily weighted in this amount.
The Health Insurance Portability and Accountability Act (HIPAA) or the Katzenbaum Kennedy Bill passed in 1996 has impacted how health insurers handle much of their business. Group health products must be guaranteed issue to any small employer applicant who adequately meets contribution and participation guidelines.
But paramount for any group is the overall health status of the group. If your group has a combination of health conditions that will constitute a marginal risk, you may be rated-up prohibitively by the various insurance vendors. Work with an insurance agent to help facilitate this process so that all of your options are evaluated.
The following are among the many other reasons that costs for health insurance are increasing so dramatically: -Technological advances in the health care industry. -An aging U.S. Population. -Physicians and hospitals are banning together to regain negotiating clout with insurance vendors. -Legislation has created far more regulatory requirements. -Overutilization of services by Americans.
As described in the opening paragraph, health insurers as private labelers of our health care system must identify strategies to help relieve the pressures of these various issues. Each of these items is impacting profitability and an unprofitable industry is not ideal for purchasers, consumers or vendors and also creates much of the volatility each employer is facing on their renewal.
Employers must begin to engage their employees in these cost increases. Employers can do the following things to increase awareness: -Provide a detailed breakdown of the overall cost for insurance and then show the employee contribution on payroll information. -Provide a payroll stuffer that demonstrates costs sharing or total employer cost. -During annual review periods ensure the employee understands the costs of employee benefits and note that the employer portion represents effectively additional income. -Increase the employee contribution while explaining the price increase.
Employers must analyze their costs regularly. Each year the company will renew with their insurance vendor. The employer has the opportunity two to three months prior to evaluate the marketplace. There are many factors that will determine if the company is able to improve price, product or network.
So what can an employer do to keep costs affordable? There are several steps that should be considered in attempting to keep costs affordable: -Evaluate your plan each year and ensure pricing is competitive. -Make annual plan changes to offset increases in pricing such as increasing copays or deductibles. -Consider changing your drug card to engage your employees more in the cost. -Evaluate employee contribution levels and consider changes in the percentage of overall costs that you provide. -Discuss the affordability of a health care offering with your employees and leadership to ensure each knows the pressure of maintaining such an offering.
For many employers, the cost of offering health care is typically the in the top five highest costs behind costs such as payroll and raw materials. This high ranking in cost is growing exponentially and deserves the time to be carefully evaluated and assessed. As the consumer becomes more engaged in the complex purchasing decision for the employer, there may be a gradual enlightenment by some employees who will realize that everything has a price.
Take the time to have your benefits evaluated by a seasoned professional who will carefully analyze your company's benefit/price/risk equation for your health care offering so that you can optimize your position.
Both Elliot Bigman & Scott Cooper are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Elliot Bigman has sinced written about articles on various topics from Health Insurance, insurance agents. North Carolina employers can take advantage of the expertise offered by the agents at Direct Marketing Associates Inc. who have been helping business owners invest in their employees' health care coverage for over twenty years. The authorized Blue Cross B. Elliot Bigman's top article generates over 5400 views. to your Favourites.
Scott Cooper has sinced written about articles on various topics from Health Insurance, Insurance and Wellness. Scott is a partner in ESP Benefit Design, an employee benefits insurance firm based in Westerville, Ohio. (614-882-8535) Scott has an MBA from Franklin University. Scott has worked with over 6,000 customers. Email Scott at scott@espbd.comVisit. Scott Cooper's top article generates over 201000 views. to your Favourites.