This guide will teach you:

  • The source of uncontrollable and unsustainable healthcare cost increases
  • Why fully insured premiums always increase
  • The 4 cost verticals in the healthcare supply chain which account for 80% of the expense
  • How we achieve average cost savings of 20%+ for our clients
 

Introduction

Why Read This

In this guide, you'll learn why fully insured premiums always increase. Then we'll explain how you can to take control of your employee benefits expense by effectively managing what we refer to as "the healthcare supply chain."

FOCUS ON THE 80%, NOT THE 20%

 

Chapter 1

The Four Cost Verticals

A key problem facing manufacturing firms is the uncontrollable and unsustainable rise of healthcare costs. If insurance was the source of this problem, we could fix it with insurance. You've tried to do that at your manufacturing company for 20, 30, 40 years.

UNDERSTAND THE PROBLEM

 

Chapter 2

Building a Competitive Benefit Plan

For manufacturers who know to examine these four verticals in the healthcare supply chain, they are able to maximize the benefits budget to build a competitive benefit plan to attract and retain the best employees.

SEE THE STATISTICS

 

Chapter 3

Common Broker Excuses

When informing manufacturing clients of yet another annual premium increase, other brokers will commonly reference industry “trend,” or the average percentage by which health plan costs are rising each year, as a benchmark to validate their performance. The problem is...

TREND IS A FAKE NUMBER

 

Chapter 4

Misaligned Incentives

You're trusting the insurance carriers to manage the supply chain, and they have no incentive to do so. Not only do insurance carriers have no incentive to reduce insurance costs, the Affordable Care Act almost guarantees that fully insured premiums will increase.

UNDERSTANDING THE MEDICAL LOSS RATIO

 

Chapter 5

Why Fully Insured Premiums Always Increase

As the premiums go up, so does the amount the insurance company gets to run their business and offset their administrative overhead. For example, an insurance company paying out $850,000 on behalf of an employer would be able to retain $150,000.

CEOs WANT TO KEEP THEIR JOBS

 

Chapter 6

No Transparency

A prominent is hospital system in the Pittsburgh region has 5 facilities that can perform a knee replacement. The cost of that procedure ranges from $45,000 to $95,000 depending on the facility and the quality also...

YOUR "NETWORK" IS BROKEN

 

Chapter 7

A Lesser Plan Does Not Lower Costs

Instituting a high-deductible plan is a one-year bandage, not a sustainable strategy. Rather than continuing to increase your employees’ contribution, it's time for your manufacturing firm to change your approach to rising health insurance premiums.

RECOGNIZE THE CHEAP PARLOR TRICK

 

Chapter 8

Reduce Costs with a "Free" Employee Option

If you had a group of employees traveling on a business trip and you told them they’d only need to pay a $100 contribution toward the hotel room, what’s to stop them from choosing a Ritz Carlton over a Days Inn?

LEARN HOW TO INFLUENCE BEHAVIOR

 

Chapter 9

Numbers: Real and Fake

Insurance carriers will say their biggest value-add is their network discount. This is one of the biggest lies ever sold to the American public. In healthcare, there are four numbers, two of them are real and two of them are fake.

DISTINGUISH REAL FROM FAKE

 

Chapter 10

A New Direction

The bottom line is, if you’re a manufacturer paying out X dollars in premium and you allow the insurance carrier to manage them, you're going to lose every one of those dollars. It’s time to take ownership of the 80% of plan costs that are within your control!

A SAVINGS OF $250K IN YEAR 1

 

Control Healthcare Costs

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