Health Insurance: When you have information, you have power.
Are you a small or medium-sized employer? If so, Employers Committed to Control Health Insurance Costs (ECCHIC) would like to show you how you can do just that – better control your health insurance costs. And to do so without compromising benefits to your employees. ECCHIC is a team of professional cost management experts who know the pricing behind insurance, whether medical, pharmacy, administrative, or a combination thereof, etc.
The Health Insurance Challenges Facing Businesses Today
Small to mid-sized businesses that employ five to several hundred employees face unique challenges in today’s health insurance market. According to ECCHIC stats, many companies have been unable to increase health insurance benefit budgets due to various economic factors outside of their control, in many cases, these budgets have remained stationary for over five years. Also, many employers have chosen not to add additional burden to employees by asking them to pay higher health insurance costs, even though benefits remain unchanged or have improved. Consequently, these small and mid-sized businesses are accumulating additional health insurance expenses – sometimes in the six figures.
When shopping around for the best insurance premiums, many businesses don’t know where the cost numbers originate. As a small business, the following points are critical for not only understanding your rates but also comparing insurance rates – which can vary widely:
- Know your underlying healthcare costs.
- The biggest disadvantage is that many businesses can’t find their underlying costs.
- As a middleman between the employer and the insurance company, the insurance agent builds markups into premiums that result in higher-priced insurance plans.
- Running from agent to agent for premium quotes from insurance companies is not the answer.
Unfortunately, many businesses don’t realize that the middlemen (insurance agents) cause excess expenses on insurance premiums from the markup they build into the cost. And most of us ignore the cost of actual healthcare services. Have you ever Googled the average price of a test and compared it to what the insurance company charges? There can be significant differences.
Another challenge facing businesses is that the decision-makers are often responsible for establishing how much they charge employees to participate. However, they don’t always evaluate information that may allow them to use their money more efficiently.
Medical Expenses Categories
Another little secret in the insurance industry is that there are two categories of medical expenses buried in premiums.
- Category A – refers to identifiable conditions with treatment, like diabetes. This category has known costs. When calculating this for insurance, it’s known as a “cost-plus” calculation because the insurance company knows the diagnosis, the cost of treatment, and what they will have to pay.
- Category B – refers to the portion of that premium paid to an insurance company covering unknown risk. This category is a valuable part of insurance handling unforeseen events like accidents or medical emergencies.
Unlike Category B, Category A doesn’t offer real value because intermediaries provide this portion of the healthcare premium and add about 40% to the cost. Consequently, the price of the healthcare premium increases.
A Health Insurance Alternative for Small- and Medium-Sized Employers
ECCHIC offers a health insurance alternative that many small- to medium-sized companies have turned to. They help businesses look past the cost of the premium to find the actual service cost. ECCHIC shows small- and medium-size employers how to look under the hood and see what’s happening.
Through a unique program, employers discover their underlying costs and how to best use the medical, pharmacy, and administrative insurance resources more effectively and efficiently. This is the first step in giving the employer control of the resources that pay for their needs.
And when you have information, you have power.
Find More Stable Healthcare Costs With Better Benefits
It’s time to reclaim control back from the insurance companies and the intermediaries. And ECCHIC is in the business of helping employers find the best health insurance options.
If you are a small- to medium-sized company with spiraling health insurance premiums, contact ECCHIC. You will work with our team of proactive cost managers to “Do Your Own Plan” to lower the cost of your group health insurance.
ECCHIC is the alternative to many employers’ current situations. And perhaps the something different that you’ve been looking for. Give us a call at (314) 997-8865 or contact us via our website HERE.