Proactive Risk Management Is Key To Managing Rising Health Care Costs

This illustration is on a 465 life case that has been on a Reference Based Pricing plan for over a decade. They have never had a rate increase.

The illustration breaks down the various cost components.

In this instance the plan is a Cash Pay Centric Plan with a Reference Based Pricing wrap.

Plan contributions are a sum of all costs distributed across participation tiers.

Plan contributions shown include a margin over expected claims. A plan sponsor may decided to fund less than the suggested funding rates especially if there are adequate booked reserves from the prior year.

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