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Controlling the increasing costs of health care is of continuing paramount concern for employers of all sizes. Group health insurance premium costs increased by 14% on average in 2003 and by another 12% in 2004. Employers have faced double digit increases for the last four years. Some forecasts for 2005 peg cost increases at 12%. Mid-size and small employers are hit particularly hard with rate increases; with premium costs rising a few percentage points higher than large employers.
In their planning process, many companies overlook one of their biggest budgetary items – their employee benefit plan. Many employers do not consider the acquisition of healthcare as a strategic planning endeavor. They may not have the time, expertise or resources. Or they are underserved by their broker or consultant who treats their health plan as an annual expenditure-- year after year shopping for a new plan without regard to the value, opportunity or importance of benefit planning and strategy development. Many are uniformed about which financing options make sense for their company. Worse still, many employers have a bad experience with a funding method, such as self-funding, and lose sight of its intrinsic value. These employers do not realize that all self-funded plans are not created equal; that cost and exposures can be avoided with good design and appropriate risk structuring coupled with comprehensive plan management structure.
Employers need real and reliable help. Government regulations and compliance issues, new tax-advantaged accounts, technology and Web applications, plan funding mechanisms, these issues compounded with year over year cost increases are overwhelming employers. They are looking for guidance and direction. They are looking for solutions. They are looking for straight talk. They are not looking for a sales pitch or a spreadsheet showing only many different carriers and their costs. The industry is in a state of flux. Health plan management has become increasingly complex. With the many options, tools, and emerging technologies now available, there is no question that employers are in need of impartial, expert consultation with a client-focused strategic orientation. They need the ability to identify and evaluate effective plan solutions, financing options and administration services.
Small and mid-market employers are at a huge disadvantage versus their Fortune 500 company competitors and it is not just because they have fewer employees. Buying a health plan is just as big of a deal for a mid-market company as it is for a big company, yet they have a fraction of the internal resources and limited external expertise. The brokers and consultants that predominantly serve the mid sized employer have a narrow “market shopping” focus and capability.
Who is helping the employers sort through their options, determine if any of the new capabilities are a real solution for their businesses, and whether they fit with their strategic direction and philosophies of the organization? Who will help them navigate through converting a generation of health care buyers to an entirely new approach, process and mind set?
Who is providing fair, impartial guidance, unfettered by ties to carriers and uninfluenced by carrier’s bonus incentives?
Most importantly, who is providing the pathway to build and sustain a health benefit program that achieves improvements in outcomes and helps mitigate the rate of escalating health care costs?
Who is giving companies power over their health plan, and ultimately, the power to compete in their market? |
