Healthcare can be a significant cost for any company that provides benefits to employees, whether it’s through a traditional fully insured approach or through a self-funded plan. It seems everywhere you turn people are talking about the rising cost of healthcare, from individual patients to the employers providing the benefit.
But do you know exactly where your costs are increasing or why? If you’re providing insurance to employees through a traditional model, it might be time to think about a self-funded plan to reduce costs. If you’re already on a self-funded plan, it’s time to dive in and really understand where your costs are coming from.
As a business owner, you typically know and compare costs for your business expenses. Painting your office? You’re probably talking to several painters for quotes and asking about the cost of paint, the cost of labor, and any other costs. Getting a new copier? The cost includes the copier itself but also the per-print charge, if applicable, or the cost of the toner and paper. And those costs are typically itemized on any quote you receive.
Yet when it comes to insurance costs, there’s often a shell game happening that prevents employers from truly knowing what they’re spending. Often times, employers are offered a certain percentage off the total price, but the tradeoff is they never see an itemized bill to explain the costs.
Yes, you know the bottom line number. But do you know how you got there? If you’re working with a broker to create your self-funded insurance plan, do you know what choices you have in pharmacy benefits and other aspects of your plan?
Healthcare is important, and you should be able to shop healthcare like you shop around for any other goods or services for your business. It’s not always about finding the cheapest price, either. It’s about balancing the desire to take care of your employees with the constraints of your budget.
At MaxCare, we value transparency in pricing to create a competitive market and help employer’s make educated decisions about every aspect of their self-funded insurance plan. If you don’t know your true healthcare costs, we would be happy to visit with you.