Three Critical Questions To Ask To Transform Your Health Insurance

Grappling with the complexities of a health insurance plan takes work. The key to a successful plan is to choose the right broker and policy and understand the dynamics that drive your costs and coverage. Let's dive into three crucial questions every company should ask to effectively manage and improve their health insurance plan.

1. Why Do Our Health Insurance Costs Keep Increasing Every Year?

It's a common frustration: your health insurance premiums increase yearly. But why? The simple answer lies in understanding that these premiums are the health insurance carrier's profits. Their business model revolves around profitability, which often translates into increased premiums for you. It's a cycle that repeats annually, leaving companies like yours constantly struggling to balance costs.

However, recognizing this pattern is the first step toward taking control. By understanding the carrier's perspective, you're better equipped to negotiate and explore options that might be more financially sustainable for your company in the long run.

2. How Does Our Broker Get Paid?

The role of your broker is pivotal. But have you ever wondered how they're compensated? This question is critical because it directly impacts their motivation and, consequently, the advice they provide. There was a time when brokers received higher compensation as premiums increased, which could lead to a conflict of interest.

Transparency is key. Ensure your broker's compensation model aligns with your company's best interests. A broker whose earnings are tied to your satisfaction rather than the size of your premiums is more likely to work toward cost-effective solutions for your company.

3. What Can We Do to Lower Our Costs Without Negatively Impacting Coverage?

You may have asked yourself this million-dollar question. Reducing costs without compromising on coverage may seem like a daunting task, but it is achievable. The focus should be on two aspects: how you pay for your health insurance and how you influence the cost of your claims.

Exploring alternatives like self-funding can offer you greater control over your costs in the long term without affecting the quality of coverage you offer. Additionally, paying attention to solutions that help lower claims costs can be immensely beneficial. Consider integrating programs like direct primary care, drug manufacturer discount programs, and care navigation into your plan. These strategies can significantly reduce your claims costs, thereby controlling your insurance expenses.

When you decide to tackle your company's health insurance plan, it requires insight, transparency, and strategic thinking. By asking these three critical questions, you're not just auditing your current plan but taking a proactive step toward a more sustainable and adequate health insurance strategy for your company. Remember, the goal is to save money and ensure your employees have access to quality healthcare that meets their needs. Let's work together to make that a reality.