Health insurance benefits have created an incredibly challenging cost problem for employers. And cost-shifting practices have reached a dangerous breaking point.
One example that hits close to home is the narrowly avoided nurses’ strike at Children’s Minnesota in June, stemming from union concerns over the rising cost of health insurance. It’s a growing trend across the country.
Strikes tend to be the more dramatic and visible demonstrations of employee frustration, but the reality is, employees everywhere are feeling the pain. Sixty-four percent of patients reported that they delayed or neglected care within the past year because their medical expenses would be too high, according to a 2018 survey of 1,000 respondents conducted by 20|20 Research for CarePayment. And 40% of people say paying for health care is more frightening than the illness itself, says a 2018 poll of 1,300 adults by NORC at the University of Chicago and West Health Institute.
Cost-shifting has come in the form of higher premiums and higher deductibles for employees. Today’s average deductible is $3,000, yet most Americans don’t have $400 in savings to cover medical costs, according to the Federal Reserve Board. And the Commonwealth Fund has found that 25% of today’s insured employees are considered underinsured.
It’s time to admit it — deductibles don’t work.
For the employers out there, I feel for you. Care avoidance is costing your businesses a lot of money too — illness-related productivity loss cost an estimated $530 billion last year, according to the Integrated Benefits Institute. And businesses can’t afford to have unhappy employees in today’s competitive labor market.
You’re in a tough spot. The insurance industry has offered you little support. You’ve seen basically the same set of products for years — with only cosmetic fixes on top of a broken system. That’s why costs have consistently risen.
We are weeks away from 2020 open enrollment. How will you change the status quo? Here are five ways to think differently as you approach health plan selection this year.
1. Seriously consider alternatives to the high-deductible health plan. When employees have coverage on Day One of the plan year, they can actually get treatment when they need it instead of putting it off, getting sicker and missing work.
2. Evaluate the new Health Reimbursement Account ruling and the potential benefits to you and your employees. These structures help individuals take ownership of their health benefits.
3. Make sure employees understand how to determine what is covered and what isn’t, so they aren’t left in the dark — and make it easy. This may seem obvious, but the process of determining what’s covered is often not straightforward, and it’s a common source of frustration and surprise bills.
4. Encourage price shopping. Price variation will start to dissipate as people search for and choose affordable services in their market. And remind employees that high price does not equal high quality in health care.
5. Look for plans that give employees choices along their treatment path. When presented with information and options, employees are empowered to decide what’s the most efficient and effective option for them — such as trying physical therapy, chiropractic care, or injections to treat knee pain before opting for knee arthroscopy.
We can’t keep putting a heavier burden on the backs of employees. And we can’t keep pushing off change. Let’s all have the courage to try something new.
Tony Miller is the founder and CEO of Bind On-Demand Health Insurance.
Editor’s note: Submissions to be considered for publication in Business Forum can be e-mailed to [email protected] Please limit the length to 950 words or fewer and avoid self-promotion.
- Cost, Not Choice, Is Top Concern of Health Insurance Customers
- Health Insurer Hoped to Disrupt the Industry, but Struggles in State Marketplaces
- Why Do Health Costs Keep Rising? These People Know
- Democrats: More Than Health Care
- Health Insurers Use Process Intended to Curb Rate Increases to Justify Them
- Free Lunch on Health? Think Again
- Why BJP In Karnataka Is Not In Good Health
- Aetna to Pull Back From Public Health Care Exchanges
- House of the Dragon eyeing shorter Season 2 as part of a long-term plan that involves an early green light for Season 3
- 2023 NFL free agency awards: Picking best and worst signings, biggest bargains, plus breaking down other moves
- From savings to allowances: Six key pension tips to consider before the new tax year
- Apple AirPods could get new health tracking features, rumour claims
- Labour hits on brilliant new vote winning plan... Pay more tax everyone
- Get Ready for Higher Obamacare Rates Next Year
- Half a million patients face losing their dentist as Bupa announces it will shut up to 85 practices - so is YOURS one of them?
- The Revolutionary Impact Of Machine Learning In Healthcare
- The Incredible Challenge of Counting Every Global Birth and Death
- Doctors in training are unionizing in record numbers today: Here's what they want
- Yes, Obamacare Premiums Are Going Up
- Report: 44% of Americans Work a Second Job, 13% Increase Under Biden
Employers should consider breaking out of health plan rut have 813 words, post on www.startribune.com at September 14, 2019. This is cached page on Business News. If you want remove this page, please contact us.