Healthcare and Health Insurance Are Not The Same Thing
Healthcare and Health Insurance are not the same thing
Unfortunately, employees believe the “Blue Cross Blue Shield” logo on their medical ID card is healthcare. When asked “Who is your healthcare provider?” they’ll respond with “Blue Cross Blue Shield”.
Healthcare is the service your employees receive from their doctor. Health insurance is the way you pay for it.?They are not one in the same. However, if you can control the costs of the healthcare services your employees receive, you will control your health insurance costs.
Why is it so hard to control your health insurance costs?
Well, you’re cutting a check for healthcare services for which you have no clue of the unit price.?Would you do this for any other expense in your business??Of course not.
You wouldn’t pay another service provider in your business without knowing the unit price of the service you’re buying, but you do it every day with the healthcare services your employees receive.
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So what can you do to control healthcare costs so you can control your health insurance costs?
Step 1: Self-fund your health insurance plan.?Why??It creates transparency.?You see into your claims and know exactly what the healthcare providers are charging.?With this data you can implement strategies to control the unit price of these services.
Step 2: Give your employees access to Direct Primary Care (DPC).?It is the BEST gateway to the healthcare system.?DPC providers are independent doctors who are not tied to a specific healthcare system so they do not have any misaligned incentives.?Your employees will benefit from shorter wait times and longer appointments ensuring they’re receiving the RIGHT care helping them and you save money.
Step 3: Consider Direct Contracting with healthcare providers.?Now that you have created transparency in your health insurance plan and see what the providers are charging, you can consider working with your local healthcare providers to negotiate a mutually-agreeable unit price for the services they’re providing.?Your employees receive the care they need and you know EXACTLY what your health insurance plan will pay.
What’s the moral of the story? Focus on the financing.
When you know the unit price of what you’re paying for, you can put the right guardrails in place to control your budget.