You may not be able to change the world, but there are things you can do to reduce what you spend for Health Care. This is true whether you have an individual/family policy, are on your employer’s plan, or provide a plan for your employees.
The basic concepts are:
- Personal responsibility – Understand and manage your personal medical and health needs;
- Informed choices – Use appropriate service providers (doctors, labs, pharmacies, etc.);
- Cost-effective insurance – Select a health insurance plan that rewards you for taking control.
“Self-insurance” can be a scary idea when you think about the huge potential costs of some medical conditions. However, our experience shows that “modified self-insurance” at both the individual and group level has proven effective at reducing overall costs. Having “skin in the game” seems to keep individuals and employers focused on the important basic concepts above.
Steps toward modified self-insurance include:
- Health Savings Accounts (tax-advantaged savings accounts controlled by the individual)
- Health Reimbursement Arrangements (a limited additional “deductible” is accepted by the employer in exchange for lower monthly premiums)
- “Level-funded” group plans are often the next step in the employer absorbing more risk while reducing fixed costs
- ASO (Administrative Services Only) plans allow larger employers, typically those with fifty or more employees, to participate in the benefits of having healthy, well-cared-for employees
Our job is to help you develop a strategy that is right for you. Contact us for an assessment of your situation.