ComPro – Helping Businesses Lower Health Insurance Premiums
Reducing benefits used to be the only answer to rising health insurance premiums. Insurance carriers have gotten creative and are now offering other solutions.
Smaller Networks = Lower Premiums
BlueCross BlueShield of Nebraska offers three network options in the Lincoln, Omaha, and Tri-cities areas. Network Blue is Blue Cross’ complete statewide network. Blueprint Health is affiliated with CHI Health. The Premier Select BlueChoice network includes Bryan Health, Children’s Hospital and other providers. Choosing a smaller network offers a savings of approximately 5 – 15% depending on location and network choice. United Healthcare has taken a different approach by offering in-network only plans. Members have access to the full United Healthcare network but there are no out of network benefits. These plans are approximately 18% less than traditional policies. Both Blue Cross and United Healthcare allow employers to offer multiple network options.
A New Twist On Copays
United Healthcare has designed plans that provide cost savings by limiting utilization of certain benefits. These plans have copays for a limited number of doctor office and urgent care visits. This provides employees with access to affordable care while delivering a premiums savings of 10 – 15% over traditional unlimited copay plans.
Multiple Plan Options
Blue Cross and United Healthcare both allow employers to offer at least two benefit plans. Employees have different health insurance needs and offering multiple plans allows them flexibility to select a plan best suited for their situation. Employers can structure their contribution to premium a couple of ways. Employer contribution can be based upon the cost of the lower priced plan, giving employees the option to buy up to the more expensive, better benefit plan. Employers may also contribute the same percentage of each plan. Ultimately the goal of a dual option offering is to reduce costs for both the employer and employee by not forcing all employees into the same plan.
Take a Look at Level Funded
Medical underwriting for small employer health insurance largely went away in 2014 with the Affordable Care Act. Level Funded policies are bringing it back, with the opportunity to reduce premiums. Level Funded premiums are based upon the medical risk factors within the group. Healthier groups are rewarded with lower rates. Not all companies will qualify but it is a great option for some. In addition to the premium savings most carriers will refund a portion of the surplus claims fund after renewal.
Give ComPro a call if you think these options may benefit your business.