As you may know, I do a lot of email marketing and communication with businesses trying to persuade them to reevaluate their health insurance options at renewal. In many cases employers are willing to look at alternatives, and in some cases not, and those who choose not to take a look sometimes respond with the comment “we’re happy with our health insurance.”
All of my clients said the same thing until they saw the light as to what is possible, rather than doing the same old thing year in and year out with their insurance – absorbing rate increases, cost shifting to employees with higher contributions or deductibles, changing insurance companies – the same old thing they’ve done for years and years.
The reality is that no one is “happy with their health insurance costs.” How could they be? It’s usually the second or third highest expense on the P&L – and continues to go up. No one’s happy with their cost.
Many think I’m kidding when I say that I can reduce their healthcare costs by 20 to 50%. But I can. Case in point – I have an electrical contractor client that dropped their costs a few years ago from $9,000 per employee per year with CIGNA to $2,900 in their first year alone. There are other clients who have dropped their costs as well (maybe not quite as much as the contractor).
When possible, I conduct a Financial Feasibility Study whereby we re-price medical and pharmacy claims, look at additional opportunities to save plan dollars, and determine whether there are compelling financial reasons to look at alternatives.We recently completed a Study for an attendee I met with at the Marcus Evans CFO Summit this past May in Florida. Here are a few facts about them:
- Privately held multinational corporation
- 16 locations across the U.S.
- 1,500 full time U.S. employees covered under the health plan
- Self-funded with CIGNA as administrator
- Annual health insurance spend ~$23,000,000
- Traditional PPO plan
- 1/1 Plan Anniversary Date
Financial Feasibility Study results: $5,700,000 SAVINGS – think what it could mean for a company of your size!
I’m guessing many companies have started working on their January health plan renewal, or at least had internal discussions bout what to expect in the renewal and how to react. Whether or not your renewal is in January or some other time during the year, now is a good time to take a look at what opportunities are available to dramatically lower healthcare costs.
It never hurts to look at alternatives and in most cases those alternatives are much better than the current program that they’ve had in place. There’s no obligation, there is no commitment, but once you see the substantial financial savings, it will be a compelling case for change.
If you want to check it out give me a call at 970 – 349 – 7707, or send me an email to firstname.lastname@example.org