A large taxpayer supported employer now knows they are overpaying for health care……
All facility claims during the past 18 months have been paid through a PPO managed care contract and bench marked against Medicare allowable rates. The later exercise was preformed to gauge the value of network discounts. The result? – PPO allowable in the aggregate proved 380% of Medicare.
This group now knows they are overpaying for health care but thus far has failed to act. In the meantime, taxpayers and plan participants continue to over pay for health care. The only problem is plan members don’t know the truth. If they did they would be furious.
This is a classic example of the power of the status quo. Vested interests rule, third party intermediaries continue to suck financial teats dry.
When will this plan sponsor wake up and pay attention? Not anytime soon it seems.
Maybe when I retire and move to Tahiti I will write about this in detail. And I won’t need to own a car which my gardener is required to start each morning before I’m off to the races!
Editor’s Note: Mulebriar can be contacted at www.mollymulebriar.org