WHAT IS THE “BEST PRICE” OF HEALTH CARE COSTING YOU?

Is cash really King? Unfortunately, and especially in the health insurance industry, cash has become king, but there was a time when the “price” of providing healthcare benefits was not the primary focus of employers and, a look back at the golden age of healthcare can teach us a few time-tested principles that can still can work if they are applied using today’s technological advances.

When you buy insurance, any kind of insurance program, there are two basic questions; one of which is presumably answered contemporaneously with your purchasing decision:

1.      Did I make the best possible decision for the “best possible price,” and;

2.      When I and my employees need service, will it be delivered as promised?

Obviously, if you did not believe you made the best possible decision at the best possible price, you wouldn’t have pulled the trigger and settled on one program over another or one broker/consultant over another, so it’s more or less a given that you’re at least confident you made the best choice. However, if your focus was price first and value second you may be putting “soft dollars” at risk that could otherwise be allocated to benefit a greater percentage of your employee population, or perhaps even your corporate profits.

Unlike any other kind of insurance plan, health care plans (fully-insured and self-insured) are highly utilized by the members they serve and, the litmus test of any decision you make is pass or fail months down the road.

After 28 years in this business, I am astounded (and appalled) by how purely profit-driven our industry has become at the expense of its customers and provider-partners; perpetuating age-old processes, creating greater inefficiencies, adding unnecessary administrative expense and wrenching down provider payments to increase stockholder profits.

Moreover, all one has to do is take a brief step back and see that our industry has “Walmartized” over the past decade or so. Now, I’m not disparaging Wal-Mart even though they’ve had their fair share of bad press across a multitude of topics lately; healthcare included. I’m simply drawing a parallel comparison between how the retail and healthcare industries in America have consolidated so drastically and, how our choices as a result have dwindled down to no more than a handful of profit-driven companies relentless on drilling down what they pay their manufacturers purely to increase stockholder profits. Like the retail industry, we’re cannibalizing ourselves; driving quality providers (manufacturers) out of business and, limiting consumer choices, BUT unlike the retail industry who can (and has)  turned to countries like China to replace their more expensive American manufacturers, healthcare cannot be outsourced overseas!

So, what does any of this have to do with how you decide on which company you entrust your health plan to and with whom you do business? Perhaps more than you think and all you deserve to know.

Yes, I do turn to the brand-name carriers, but “bigger is not better” when it comes to insurance companies and, “Less is not more” when it comes to service. As an employee benefits professional after 28 years, I am a consultant first and broker second.

Finally, I expect an annual evaluation or report card from you on the advice I deliver and the services I recommend that you choose to implement. If I consistently fall short of your expectations, I expect my services will no longer be needed.

For a fresh new approach and innovative, non-conforming ideas on how I can save you money providing healthcare benefits to your employees and help you control your healthcare cost in the future, write: mark.capuano@skyinsure.com, or call me at 330-492-3373.

http://www.markcapuano.com. http://www.skyfi.com. This article may be reprinted with Author’s email, phone number and web address included. Copyright © 2005-2007, Mark L. Capuano. All rights reserved.