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Benefits sticker shock
Benefits & Compensation
Benefits sticker shock
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
Last year Blue Cross hit us with a 46% increase. (one large claim). So we switched ot Aetna. First renewal comes in at 30% increase. (One claim just under 100K and one just under 50K)
We seem to b
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Forums » Topic Forums » Benefits & Compensation » Benefits sticker shock
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Benefits sticker shock
posted at 8/12/2011 6:51 AM EDT
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Posts: 237
First: 7/10/2007 Last: 8/31/2011 |
Funny thing is that on another board posters pretty much unanimous that wellness programs were a nice idea but ultimately have little if any impact on rates. I'm sure that some will have different experience. |
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Benefits sticker shock
posted at 8/13/2011 6:45 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
Wellness programs are a good on a number of different fronts, so long as you are self-insured and/or are focusing on absenteeism and presenteeism.
Depending on the type of wellness program you implement, you're probably not going to see any impact in claims for at least 12 months. And even then, remember, you're only going to see a modest impact. It's not like claims are going to drop 25%. If you're fully-insured and have less than 100 employees, wellness programs tend to be a direct cost unless they are built into your medical plan. Keep in mind that 97% of all wellness programs are a complete waste of money to begin with. For a group your size, any positive impact to claims is only going to be extra profits for the insurance carrier. |
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Benefits sticker shock
posted at 8/17/2011 8:37 AM EDT
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Posts: 4
First: 1/30/2007 Last: 8/17/2011 |
This is precisely why single payer health care is the most viable option. As long as insurance companies can "cherry pick" the groups they want to insure, thus preserving their profit margins, health care costs will continue to soar. |
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Benefits sticker shock
posted at 8/17/2011 9:34 AM EDT
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Posts: 1
First: 8/17/2011 Last: 8/17/2011 |
All of you are correct in that Health and wellness programs have almost no impact on the cost of the insurance however; they do reduce claims and provide a more confident and capable work force. The team I have now is into fitness and eating healthy and because of this life choice noone has called in sick or gone to the doctor for anything other than preventative care. In the short term it doesn't seem like much but in the long term( 2-3 years) it will definitely show in profit. Wellness programs can be very affordable especially when you look at the big picture. |
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Benefits sticker shock
posted at 8/17/2011 10:16 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
So long as you are using the right metrics to validate that your wellness program is working. The smaller the firm, the less credible the metrics are. Also keep in mind the 80/20 rule - 80% of claims are driven by 20% of your workforce. So just because employees appear to only be using the health plan for preventive care, that doesn't mean something isn't brewing.
And NO, single payer health care is not the way to go. Are you dense? People keep pointing to Canada and European nations as an example when they know little to nothing about other underlying factors (cost of education, annual earnings of physicians, cost of living, average BMI of citizens, etc.). Companies have a greater vested interest in keeping their employees healthy than the government does. There are lawsuits left and right regarding the government mandating individuals to get health insurance come 2014. Can you imagine the chaos that would ensue if citizens with BMI's over 30 had to pay 50% more for health insurance? It is feasible to roll out reward programs on an employer level since the average American worker spends over 50% of their waking hours at work. |
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