Some Texas political subdivisions have reduced costs and improved benefits. Others have experienced the opposite.
By Bill Rusteberg
Sensible alternatives to rising health care costs are gaining strong traction in the market, particularly in Texas. Yet many political subdivisions are not aware of these trends but should be.
In these times of continued double digit cost increases it makes economic sense to include these market trends as alternatives in Request for Proposals for health insurance.
These trends include health care reimbursement models based on transparency and bench marked off well established data points such as Medicare reimbursement levels, Cost-to-Charge data as reported to CMS, pre-claim payment audits, direct contracting with local health care givers and Cash Pay Plan Options.
There are many flavors and options a political subdivision can consider. One option is to adopt all of these at once, jumping off the cliff into turbulent waters. Or, a more cautious approach can be taken, one step at a time. Most have taken the “Jump off the cliff” approach, while others have taken a more cautioned approach, phasing in components over a pre-determined timeline.
Texas political subdivisions would be wise to consider these proven market alternatives.
Texas is a mature market for these strategies. Since 2007 there are growing number of plan sponsors who have achieved success in managing benefits and costs through new and innovative strategies. All have reduced costs and improved benefits at the same time while the rest of the market has reduced benefits and have raised costs to plan participants.
Beating medical trend while improving benefits is a reality enjoyed by plan sponsors tired of doing the same thing over and over again and expecting different results. The evidence is in. It is powerful and compelling.
For a copy of Beating Medical Trend write to RiskManager@RiskManagers.us
RiskMangers.us is a specialty company in the benefits market that, while not an insurance company, works directly with health entities, medical providers, and businesses to identify and develop cost effective benefits packages, emphasizing transparency and fairness in direct reimbursement compensation methods
