The current state of Healthcare
Health Insurance has now become, on average, the second biggest expense for most employers.
Business owners have been told for years that large premium increases are ‘just the way it is’, and have been trained to expect very little from their agent.
Are skyrocketing costs really something you just have to deal with as an owner, or are there ways to control your total cost of benefits? Think of it like this…
Imagine wanting to effectively run your business but only checking in on it once a year…
Imagine trying to lose weight by going to see a personal trainer once a year…
Imagine trying to manage a chronic illness by seeing your doctor once a year…
Imagine trying to compete in an Ironman® by showing up to the starting line with no training…
Just like your business & finances, your health, your family and other relationships, these things need constant attention. Healthcare and Employee Benefits require a strategic plan and constant evaluation.
As the economy continues to suffer, healthcare costs continue to increase, and outcomes plateau, the state of healthcare in the United States is in dire need of change. It has been all talk with no action, until now. With these external forces, business owners are looking for creative ways to free up or repurpose additional capital yet most are not considering ways to improve their Enterprise Value by focusing on their employee benefits program.
The lack of focus on prevention and early detection combined with “healthy” groups moving to self-funded models is causing the fully insured marketplace to become the next high-risk pool.
Since the introduction of PPO networks, healthcare costs have increased over 2300% in the United States. Incentives across the industry are misaligned – hospitals operate as unregulated and dysfunctional utilities; physicians and insurance companies have no financial interest in keeping costs under control; drug manufacturers run on unabated greed as there is no governance on price or profits.
Federal bureaucracy, administration, rules, regulations, and compliance (BARRC) accounts for 31-40% of US healthcare spend. To top this off, employees have no financial interest in their purchasing decision. Employers view employee benefits as a “tax/cost of doing business”. They do not see their program as something that can help improve or focus on the enterprise value and cultural impact to the organization.
Ask yourself these 5 Questions to evaluate your current position in your healthcare purchasing process:
1. Are you looking for creative ways to free up additional capital?
2. Are you absolutely sure you are getting the best plan and cost reduction options?
3. Is your agent improving the current & future Enterprise Value of your organization?
4. Do you feel like your current agent is fully transparent with you?
5. Does your agent communicate how they earn their commission?
The Future of Healthcare
Many business owners have been led to follow the traditional fully-funded, pre-packaged bundled options that continue to lead down the path of significant rate increases year-over-year in which the insurance company takes a one size fits all cost containment strategy with poor results.
Our Proprietary Coalition is the future of healthcare and we are truly changing the way the middle-market purchases insurance.
Our purpose and process are designed to bring back control of health insurance to employers. We have broken down the healthcare supply chain with unbundled services and are Driven Together with our clients. Our sole responsibility is to control costs in all areas – hospital, ambulatory services, physician claims, pharmacy spend, and administrative expenses. Transparency and actionable data allow you to attack all areas of spend resulting in a reduction of the frequency and severity of claims. The result is a more predictable and stable health insurance trend.
*There are currently 150 organizations totaling 35,000 employees that are part of this program
*Those organizations have experienced a 26% annual dividend (7-year average)
*Have only incurred a 2.5% annual premium increase (7-year average)
*Plus, a majority of them see a 10 – 15% reduction in healthcare expense right away
What is the immediate impact on Enterprise Value for transitioning from a Fully-Insured to a Self-Insured Employee Benefits Plan?
It’s like moving from being a “player” to being “the house”. The house is always in control.
If you believe you should expect more – transparency, accountability, strategic counsel, and creative cost control then contact us to schedule a discovery call.