Cost Plus medical reimbursement for self-funded employer sponsored health plans in Texas is a concept developed by Group & Pension Administrators (GPA) several years ago. Looking after their client’s financial interests, GPA developed a program based on the concept that health care cost needed to be addressed at the provider level on a transparent basis.
By removing third party intermediaries who historically have negotiated proprietary (and secret) reimbursement fee schedules in partnership with medical providers based on discounts off arbitrary and inflated fees, GPA has successfully reduced their client’s medical costs by 40% or more. With credible impirical data acquired through over 4 years of experience on their Cost Plus client base, the numbers are impressive.
We wrote Jeff McPeters, owner of GPA for an update and future prospects of Cost Plus. Below is his response:
Bill, we expect 2012 to be even bigger for the Cost Plus concept. The number of employers who have elected Cost Plus is growing steadily and as employers continue to struggle with health care cost increases, Cost Plus is taking off faster than we expected. Cost Plus is gaining more and more attention by brokers who are committed to provide their clients with a viable alternative to the status quo and inefficient traditional approaches with their related 8% to 20% annual rate increases. Cost Plus stands up very well to products that attempt to compete, with one powerful benefit being new Cost Plus clients realizing up to 50% savings on claims compared to their prior year.
With the traction already experienced, Cost Plus is growing at an exponential rate. Going into our 5th year we have continued to improve the Cost Plus concept to make it more efficient for the employers. We have also arranged for direct contracts with several hospitals to allow Cost Plus client’s employees access at very favorable rates. The consensus form clients under cost plus is that they will never go back to the traditional PPO model.
Editor’s Note: Jeff McPeters can be reached at email@example.com