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What you don't find out about your well being plan will price you one thing

Do you want to ensure the well-being of your employees – and protect your bottom line? Ask yourself these two questions.

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16, 2020

4 min read

The opinions expressed by the entrepreneur's contributors are their own.

As a business owner, you may find yourself caught between two fundamental principles: responsibility for the wellbeing of your employees and the need to protect your bottom line. The good news is that the two are not mutually exclusive: it is absolutely possible to provide a top notch health plan that will also maximize your savings. First, answer one question: Do you know how much your organization spent on healthcare costs over the past year?

Even if you don't know the exact number, you may already know that you are paying too much. According to a survey by Enterprise Bank and Trust, 79% of business owners are concerned about health care costs for good reason. Knowing how much your health insurance plan will cost you is problematic. Healthcare is fraught with wasteful spending – money your business can use to recover from Covid-19.

The next question to ask yourself is, do you know the details of what you paid for? Unlike most years, this renewal season in the midst of a public health crisis, it's important that you fully examine your options before signing on the dotted line – especially when the status quo is working against both you and your employees .

Status quo health insurances are based on “fee-for-service,” a model used by most traditional insurance carriers in which providers are paid for every single test, procedure and treatment. This system, developed over a hundred years ago, was in place throughout the 20th century as most patient problems were acute. As a result, the service fee design allowed easy access to medical care and compensated providers for their services.

Health plans based on this model are for two reasons. The first is that costly care is often not synonymous with high quality care and there is no clear way for employers or employees to understand what exactly they are paying for. The fee model is so opaque that most employers have no idea if they are severely overwhelmed and have no idea what kind of quality of care is associated with that price tag.

How to protect your money from being consumed by healthcare costs

If your organization currently has a cookie cutter health plan in place, you and your employees are likely not getting what you pay for – via unnecessarily high premium payments and deductibles.

Additionally, having basic supplies on your plan will likely only make the situation worse. Employees are frustrated having to wait days, if not weeks, for an appointment. And then by the time they finally see their doctor – who is overwhelmed with all the paperwork associated with billing for each service – it only takes a few minutes. This “quick fix” mentality, ubiquitous in old health plans, is why the US pays Cadillac prices for a pinto-producing health system.

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The value-oriented basic supply is a cost-saving, quality-improving alternative to the paid basic supply. Implementing it as part of your plan is key to getting more out of your health plan and making significantly less money. Rather than prioritizing individual fees for each procedure or test, value-based models place a high value on patient care and health concerns by encouraging providers to spend more time with patients during appointments and when prescribing Treatments take lifestyle factors into account in order to achieve better patient outcomes. After all, financial incentives are geared towards the desired health outcomes.

Related: How AI Contributes to Healthcare

The healthier people are, the less often they need to see a doctor and the less likely they are to need long-term monitoring or treatment. In every corner of the country, smart employers spend 20 to 40% less per capita on health services with superior health outcomes by following proven approaches that are quickly becoming the new norm.

Knowing the details of your health insurance plan is a critical step in reducing unnecessary expenses and providing your employees with the best possible standard of care. If you abandon the outdated fee system and introduce value-based care, you will benefit from high-quality care at a cost that will not frighten you.

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