Employers manage every aspect of their business; except one – the cost of their health insurance plan. They spend several months every year in the arduous search for the lowest price. But when the process is over and the dust has settled, no one is happy. The employer still sees an increase in this large expense item; even after making plan changes that cause a continued erosion in their employees’ benefits.
I try to bring a little common sense into this very frustrating process.
It’s as simple as the 80/20 Rule. Administrative costs make up twenty percent of the overall cost of a health insurance plan. The other eighty percent is associated with the cost of the claims. I teach employers how to manage the eighty percent.
Instead of being in the dark about why their rates are increasing, I show employers exactly what is behind the cost of their plan. With this foundation of knowledge I show them how to create strategies to help stabilize their long-term costs. The employer finally learns how to properly manage this expense, which helps keep their costs down. If I have done my job properly, employees will continue to receive the same or similar level of benefits without it costing them more.
It is a win-win for everyone!