The expense of providing employees with medical health insurance coverage continues to increase at a double-digit rate. We've read a lot about cost drivers in healthcare - exorbitant hospital charges, rising prescription drug costs, expenses related to developing new technologies and treatments, an aging population and litigation. Nurturing these factors can be an environment in that the demand for health care seems to be increasing.
For probably the most part, there is little employers can do to control what's driving healthcare costs out of the reach. Health benefits companies can and do negotiate discounts, and while those help, the underlying costs continue to skyrocket. The increases developed by these cost drivers flow through the health advantages companies and eventually trickle down to employers in the proper execution of higher medical 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 escalation in your group medical insurance whenever a renewal form lands in your desk.
Is it possible to raise the price of your company's product or service as quickly as your health insurance premiums are increasing?
Probably not. However, you will find steps you can take to get some control over your quality of life care costs.
Finding a remedy
Employers can exercise some control over their costs by finding a health advantages company that gives the "best" value because of 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 good 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 to find the best price, one other agent arranged the trip through their vendor of choice. Whether it's a family group vacation, purchasing a car or choosing a health benefits plan, the manner in which you shop can impact your cost. Make sure that your insurance agent doesn't "arrange" your wellbeing arrange for you. Just how many providers are enough? The more participating providers a health plan has, the more you're likely to pay in premiums. If you should be considering a health plan that doesn't include a few desired physicians, request that the carrier add them to its network.
Physicians take part in many different health plans and are usually ready to take part in one more. Don't get caught in the trap of paying 10 percent to 15 percent more for your quality of life insurance premiums because one or two doctors are notparticipating in the plan. It's reasonable an employee can find another physician from the thousands on the plan.
The power of marketing
Residing in the United States affords us exceptional opportunities and choices. Along with this privilege comes a barrage of communications made to influence our decision-making. What we read in the papers, see on television, hear on radio stations, see flashed across a billboard, get stuffed inside our mailboxes or arises on the Internet is made to predispose us to an organization or its product.
Marketing can be an effective tool, and depending how much is spent, could be very influential. What marketing cannot do, however, irrespective of simply how much is spent, is replace what it takes to develop an inexpensive health advantages solution that works for you. Be sure to choose a health benefits company that is flexible, listens and is willing to roll-up its sleeves to provide you with a deal of health benefits that you can afford.
Author Bio
PETER JOSEPH is senior vice president for commercial sales for VISTA, a health benefits company headquartered in South Florida with increased than 330,000 members. VISTA, through its affiliated companies, Vista Healthplan Inc., Vista Health Plan of South Florida Inc. and Vista Insurance Plan Inc., offers a range of health benefit plans including health maintenance organization (HMO), preferred provider organization (PPO) and point-of-service (POS). Reach him through VISTA's Web page at www.vistahealthplan.com or (954) 986-6255.
For probably the most part, there is little employers can do to control what's driving healthcare costs out of the reach. Health benefits companies can and do negotiate discounts, and while those help, the underlying costs continue to skyrocket. The increases developed by these cost drivers flow through the health advantages companies and eventually trickle down to employers in the proper execution of higher medical 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 escalation in your group medical insurance whenever a renewal form lands in your desk.
Is it possible to raise the price of your company's product or service as quickly as your health insurance premiums are increasing?
Probably not. However, you will find steps you can take to get some control over your quality of life care costs.
Finding a remedy
Employers can exercise some control over their costs by finding a health advantages company that gives the "best" value because of 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 good 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 to find the best price, one other agent arranged the trip through their vendor of choice. Whether it's a family group vacation, purchasing a car or choosing a health benefits plan, the manner in which you shop can impact your cost. Make sure that your insurance agent doesn't "arrange" your wellbeing arrange for you. Just how many providers are enough? The more participating providers a health plan has, the more you're likely to pay in premiums. If you should be considering a health plan that doesn't include a few desired physicians, request that the carrier add them to its network.
Physicians take part in many different health plans and are usually ready to take part in one more. Don't get caught in the trap of paying 10 percent to 15 percent more for your quality of life insurance premiums because one or two doctors are notparticipating in the plan. It's reasonable an employee can find another physician from the thousands on the plan.
The power of marketing
Residing in the United States affords us exceptional opportunities and choices. Along with this privilege comes a barrage of communications made to influence our decision-making. What we read in the papers, see on television, hear on radio stations, see flashed across a billboard, get stuffed inside our mailboxes or arises on the Internet is made to predispose us to an organization or its product.
Marketing can be an effective tool, and depending how much is spent, could be very influential. What marketing cannot do, however, irrespective of simply how much is spent, is replace what it takes to develop an inexpensive health advantages solution that works for you. Be sure to choose a health benefits company that is flexible, listens and is willing to roll-up its sleeves to provide you with a deal of health benefits that you can afford.
Author Bio
PETER JOSEPH is senior vice president for commercial sales for VISTA, a health benefits company headquartered in South Florida with increased than 330,000 members. VISTA, through its affiliated companies, Vista Healthplan Inc., Vista Health Plan of South Florida Inc. and Vista Insurance Plan Inc., offers a range of health benefit plans including health maintenance organization (HMO), preferred provider organization (PPO) and point-of-service (POS). Reach him through VISTA's Web page at www.vistahealthplan.com or (954) 986-6255.
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