We’re all up to our eyeballs in all of the information surrounding the Coronavirus pandemic. The CDC, the WHO, and of course all of the media that continues to give us their perspectives of information – everything from optimism to speculation to pessimism.
Amid all of this, we know that just about every business and organization is going to take some kind of financial hit. Just look at the stock market’s reaction… But we know that:
- Employees are being laid off, terminated, and/or furloughed
- Business production is going to be reduced
- Revenues are going down
- Expenses are going to continue, and
- Profit margins are going to go down
For most companies health insurance is the 2nd or 3rd largest expense on their P&L. Here are a few realities:
- Paid leaves and other requirements of CARE and FFCRA will require employers to still pay some wages (at least temporarily)
- Health insurance will still be offered for an unforeseen period. Whether paid for by the employer, employee, or shared, this large expense is going to continue
- Couple that with a recent survey that stated employees may be unable to pay for Coronavirus treatment because of their High Deductible Health Plans, and an Account Receivables nightmare for hospitals who are already under duress during these unprecedented times, will be difficult
Furthermore, a recent study by Willis Towers Watson stated “If the number of people infected within the country were to reach 30 percent, total claims costs for medical and prescription drugs could increase between 4 percent and 7 percent, depending on how sick COVID-19 patients become. In mild cases, costs per infected person are estimated at about $250; in moderate cases, $2,500; $30,000 for severe cases requiring an inpatient stay; and close to $100,000 for catastrophic cases requiring intensive care.”
There is a solution for you and your employees – it’s called a simple exercise to re-examine how you are paying for your health insurance – not the benefits you offer – but what’s the best way to pay for it. Rather than continue on the hamster wheel doing the same things you’ve done in the past that have produced minimal, temporary results, you can jump the tracks and investigate innovative solutions that have proven and substantially compelling financial results – for your organization and your employees.
*Let’s jump on a call an talk about how you can get through the issues you have today and increase your profits rather than the results produced by the status quo. We all know how that’s going to turn out…
You can reach me at 970-349-7707 or at email@example.com. I look forward to hearing from you. Be safe.