The Factors That Drive The Cost of Healthcare
Conventional wisdom is that health insurance is an uncontrollable cost that will continue to go up every year, and there's nothing you can do about it.
Forward-thinking benefit consultants have coined this "The Big Lie".
At Evergreen Benefits Group, we don’t believe it, and now we have data to prove it. If you follow the money, you'll find the answers.
We have boiled the increasing costs down to three factors:
Take a look at United Healthcare, for example. Their stock price is up roughly 1,000% over the last ten years. They are an insurance company. What you see as an expense, they see as revenue. Your cost is their profit. So, they have a vested interest in having your health insurance costs increase. That's their business. Unfortunately, they don’t have a vested interest in driving your costs down.
2. Hospitals
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On average, 27 cents on the dollar in what we pay hospitals actually goes to the doctors, care practitioners, hardworking nurses, and techs. This is true for non-profit and for-profit hospitals, alike. The vast majority of it goes to pay overhead, bloated administration, staffing, beautiful buildings, and profits. When you add that all up, your costs are going to increase.
3. Sick Care
Most providers in the healthcare system every test, treatment, medication and surgery they provide is being reimbursed on a fee-for-service basis. The more they do the more they make. This isn't health care, this is sick care. So, providers are incentivized to prescribe these additional services. Unfortunately, this leads to unnecessary care. For example, over 50% of the back surgeries performed in the United States are unnecessary. Unnecessary care to your employees leads to increase costs for you.
It's time for a change in the way you think about how you approach your health insurance plan. The "big lie" you've been told by insurers must end.
We can no longer afford to focus on SICK care when we should concentrate on HEALTH care.
By designing a benefits plan that focuses on health care, with time, your insurance costs will go down.
Reach out to learn more HERE.?