3 Items to review when considering a new healthcare plan:
1) Healthcare Cost and Quality:
a. Look for programs that enable employees to evaluate their options for both cost andquality. Within the same zip code there can be large variances in cost and quality, and knowing what a reasonable price to pay is important. Plans that include resources such as Healthcare Bluebook provide this information to your employees efficiently.
b. A recent study1 found that 52% of providers have a lower cash rate for services, compared to commercial insurance discount. There are more efficient models available that provide higher discounts and more transparent pricing.
2) Employee Benefit Plan Design:
a. As costs continue to rise, High Deductible Health Plans that are eligible for a Health Savings Account (HSA) are becoming more popular. Complimenting a higher deductible health plan with a Health Reimbursement Account (HRA), or even a more in-depth Medical Expense Reimbursement Plan (MERP) may help save on your premiums, and shift cost. It is important that a HRA and MERP are easily accessible, enabling payment provided directly to the providers instead of having employees file for claims.
3) Utilization:
a. How are your employees currently utilizing healthcare? Do you have data availability to help determine where your group stands to make better educated decisions? Better yet, how can you address that data to reflect a more efficient benefit offering?
b. 80% of employers that are under community rated programs may be paying more than necessary for their group’s healthcare coverage2 . There are options available that can provide you with the flexibility to customize your plans based on your group’s actual health profile and needs.
If you are frustrated with your current benefit package, the MPMA Employer Health Plan may have some options for your consideration. If you are interested in learning how the MPMA Employer Health Plan may help you lower cost and increase employer control, contact steve@mpma.com.
1 Jiang J, Makary MA, Bai G. Comparison of US Hospital Cash Prices and Commercial Negotiated Prices for 70 Services. JAMA Netw Open. 2021;4(12):e2140526. doi:10.1001/jamanetworkopen.2021.40526
2 Kaiser Family Foundation analysis of Medical Expenditure Panel Survey, Agency for Healthcare Research and Quality, U.S. Department of Health and Human Services