- Contact us: because the lowest priced insurance plan may not be the best and even the second best ...
- Financial Projections need to include the following components to be accurate; rollover accumulatio...
- HRA Rollover allows unused reimbursement account funds to rollover for future use. When the HRA op...
- HRA Unbundled Packages offer employers more savings and employees more options. ...
Identifying Objectives
C1: Identifying Objectives
Some of the most common objectives we find when employers are looking to change or improve their healthcare benefits; Lower Costs, Better Benefits, Choices for Employees, Increase Employee Awareness, and Employees having a Financial Stake in their Healthcare Decisions. Keeping costs lower is not just a benefit but a by product of a market based approach to healthcare, and Consumer Driven Healthcare programs are at the center of a market based approach. Individual consumers understand that you might need to finance a new kitchen but not a hamburger. In healthcare terms consumers will learn that the equivalent is using health insurance to pay for a broken arm or pneumonia, but not the flu. Another cost savings to be realized is through shopping for services. Calling different retailers to purchase a flat screen TV is the same process used to purchase an
Insurance Plan Selection
C2: Insurance Plan Selection
Selecting a health insurance plan sometimes seems more difficult than purchasing a car. There are many insurance companies with many options and variables and connecting the specifics together so that the result is a health insurance plan that meets your needs is a tremendous effort for the layman. One of the variables is that the health insurance plan must be an HRA or HSA qualified plan. Once that component is complete it is now time to design the specifics of your HRA or HSA Consumer Driven Healthcare Plan.CDHP Design
C3: CDHP Design
A little history of when Consumer Driven Healthcare Plans first became available: in 1978 Flexible Spending Accounts (FSA – Use it or Lose it) appeared, in 1997
TPA Selection
C4: Third Party Administrator Selection
Benefits
'EE Education
C5: Employee Education
Changing buying habits is the result of educating employees about their healthcare plans. People do not like to change, no argument. People will change though, given enough pain people will move away from the source of the pain. Financial pain is a motivator and the healthcare industry has caused enough financial pain to last a lifetime, combine the financial pain with the horribly frustrating quality of service and you now have an employee proactively looking for a solution.
When you tell an employee that they can spend their CDHP money at any pharmacy, or doctors’ office that gives them the best service and price, they will apply their shopping skills to their healthcare purchases. They will be shopping for both quality of service and price, the best overall value!Financial Projections |
Financial Projections need to include the following components to be accurate; rollover accumulation, Sec 213 factors, utilization facts, specific comparisons between insurance plans, and how the application of employer contributions and employee contributions are applied. |