What Can I Save With RBP? What Benefits Will My Budget Support?

Significant savings are achieved using a cost plus approach to health care provider reimbursement on hospital charges. Little savings are evident on professional charges.

Assuming 45% of a total plan spend is hospital related, and average managed care discount is 62%, the following will give the reader a ball park figure of what to expect in overall plan savings utilizing these benchmarks:

MC = Medicare rate

120% MC = 27%

150% MC = 22.5%

170% MC = 19.5%

This is a base indication. Other factors such as geographic area differentials in billed charges can vary significantly will affect expected level of savings.

Our book of RBP business averages 42% overall plan savings compared to a typical managed care contract specific to certain areas of Texas.

As a side note, removing specialty drugs will reduce aggregate factors 18-22% with a net savings somewhat lower than that.

The takeaway here is sustainable health insurance rates can be tailored for any budget. If a plan sponsor has budgeted X number of dollars for health care, an underwriter can build a plan of benefits to stay within those budgetary constraints. Smart allocation of available health care dollars benefiting the most and risk transfer to the expense of the few is part of the equation.

There is no such thing as an uninsurable risk. There is a rate for any risk.

Underwriting risk is not rocket science.

RiskManagers.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.