Health Care Costs Rising
The cost of providing employees with health insurance coverage continues to increase at a double-digit rate. We've read a lot about cost drivers in health care - exorbitant hospital charges, rising prescription drug costs, expenses associated with developing new technologies and treatments, an aging population and litigation. Nurturing these factors is an environment in which the demand for health care seems to be increasing.
For the most part, there is little employers can do to control what is driving health care costs out of their reach. Health benefits companies can and do negotiate discounts, and while those help, the underlying costs continue to skyrocket. The increases created by these cost drivers flow through the health benefits companies and eventually trickle down to employers in the form of higher health insurance premiums.
In this soft economy, declining revenue is putting a squeeze on company expenses. It is likely that you will experience a 15 percent to 20 percent increase in your group health insurance when a renewal form lands on your desk.
Can you raise the cost of your company's product or service as quickly as your health insurance premiums are increasing?
Probably not. However, there are steps you can take to gain some control over your health care costs.
Finding a solution
Employers can exercise some control over their costs by finding a health benefits company that provides the "best" value for their company's premium dollars. The way in which you "shop" a health plan can impact the price. I'll use an analogy. Your travel agent has a great deal for you - air, car, hotel and meals included. You tell your agent to book it.
Coincidently, your neighbors just booked that same trip for $1,000 less through their travel agent. One agent shopped for the best price, the other agent arranged the trip through his or her vendor of choice. Whether it's a family vacation, buying a car or choosing a health benefits plan, how you shop can impact your cost. Make sure your insurance agent doesn't "arrange" your health plan for you. How many providers are enough? The more participating providers a health plan has, the more you're likely to pay in premiums. If you are considering a health plan that doesn't include a few desired physicians, request that the carrier add them to its network.
Physicians participate in many different health plans and are usually willing to participate in one more. Don't get caught in the trap of paying 10 percent to 15 percent more for your health insurance premiums because one or two doctors are notparticipating in the plan. It's reasonable that an employee can find another physician out of the thousands on the plan.
The cost of providing employees with health insurance coverage continues to increase at a double-digit rate. We've read a lot about cost drivers in health care - exorbitant hospital charges, rising prescription drug costs, expenses associated with developing new technologies and treatments, an aging population and litigation. Nurturing these factors is an environment in which the demand for health care seems to be increasing.
For the most part, there is little employers can do to control what is driving health care costs out of their reach. Health benefits companies can and do negotiate discounts, and while those help, the underlying costs continue to skyrocket. The increases created by these cost drivers flow through the health benefits companies and eventually trickle down to employers in the form of higher health insurance premiums.
In this soft economy, declining revenue is putting a squeeze on company expenses. It is likely that you will experience a 15 percent to 20 percent increase in your group health insurance when a renewal form lands on your desk.
Can you raise the cost of your company's product or service as quickly as your health insurance premiums are increasing?
Probably not. However, there are steps you can take to gain some control over your health care costs.
Finding a solution
Employers can exercise some control over their costs by finding a health benefits company that provides the "best" value for their company's premium dollars. The way in which you "shop" a health plan can impact the price. I'll use an analogy. Your travel agent has a great deal for you - air, car, hotel and meals included. You tell your agent to book it.
Coincidently, your neighbors just booked that same trip for $1,000 less through their travel agent. One agent shopped for the best price, the other agent arranged the trip through his or her vendor of choice. Whether it's a family vacation, buying a car or choosing a health benefits plan, how you shop can impact your cost. Make sure your insurance agent doesn't "arrange" your health plan for you. How many providers are enough? The more participating providers a health plan has, the more you're likely to pay in premiums. If you are considering a health plan that doesn't include a few desired physicians, request that the carrier add them to its network.
Physicians participate in many different health plans and are usually willing to participate in one more. Don't get caught in the trap of paying 10 percent to 15 percent more for your health insurance premiums because one or two doctors are notparticipating in the plan. It's reasonable that an employee can find another physician out of the thousands on the plan.
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