I’ve written articles in the last few weeks why you should consider evaluating your health insurance this year. The reasons are:
- financial losses suffered by hospitals in 2020 due to the postponement of elective procedures
- increased hospital prices in 2021 to make up for those losses
- increased utilization by those who postponed their procedures and now are permitted to have them
Most companies are not proactive enough when it comes to health insurance and healthcare costs. They believe that it’s easier to continue what they have been doing for years and years, despite the increase in costs. They don’t seem to understand the cost associated with the EASY BUTTON.
The reality is that in 2021 and beyond healthcare costs are going to skyrocket because of what I mentioned above and plenty of other unanticipated expenses (Specialty Drugs will be one of them). In fact, I read an article today where the “care deferrals came back to bite insurers in Q4 2020.” The article states that the increased utilization is the big reason why. I don’t think they even know how to evaluate increased hospital prices in the article.
Most people associate all kinds of issues with change. I wrote an article a couple years ago “Resistance To Change: Selfish motivation to make/keep things easier.” This is the issue every day with health insurance – keep it easy and don’t change anything. However, every day I try to get people to consider change:
- change from the archaic ways that they have done things in the past
- change the way you approach health insurance and instead purchase it like you do everything else in your business
- change from traditional insurance company approaches that are the most costly options
- change from expensive PPO networks
- change from the traditional ways that they purchase prescription drugs
The risk and cost to stay where you are and continue to do the things the same way you’ve been doing them is greater than the risk and cost to change. When talking to many employers, they don’t even know where to begin to consider changes in their health plan. This is because they’re not getting any new ideas and alternatives that can lower their costs from 20 – 40% from their broker/consultant. They don’t even know that alternatives exist – because of the way they’ve always purchased health insurance. The reason they don’t know what exists is because either:
- the broker/consultant doesn’t have any ideas, or
- the broker/consultant doesn’t want to give them any ideas that can change the status quo – meaning: their commissions and revenue
I would enthusiastically suggest that employers take the necessary steps to avoid the status quo and the risk and cost associated with it. If you want to learn what some of those steps are, you can reach me at email@example.com or call me at 970.349.7707.