Cost Plus Pioneer Reports Program’s Continued Success

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