How do plan design changes and new innovations in the medical insurance market influence rising costs?
With the limited number of carriers in a consolidated medical insurance market, it is essential to compare competing programs. Comparing newly developed plan designs that will lower premiums by increasing cost sharing is necessary for any employer attempting to reduce health care costs. Employers have the option to change plan designs during their renewal period to lower their bottom line. This is an effective way to substantially lower the premium amount by slight increases in co-pays, deductibles and co-insurance. Employers can also introduce consumer-driven health plans (CDHP) or higher-deductible, HSA-compatible plans that allow the employees more control of their health care while keeping premiums in check. What should business owners/employers be looking for when they sit down with a broker? Business owners do not want confusing plan designs and benefits programs that basically become an expensive underutilized benefit because the employees don’t understand how they work. A good