How successful have you been at controlling medical costs?
Plan design and funding, must incorporate cost management initiatives as well as keeping a watchful eye on ever-changing ACA legislation and its potential impact on health care benefits.
RBA’s multiyear plan strategies include:
- Benefit designs
- Cost conscious provider utilization
- Targeted wellness programs to reduce claims utilization
- Demographic management (i.e. spousal carve-out, opt-out options, etc.)
- State and federal compliance
- Benefit administration
- Contribution strategies
We believe that balancing choice for employees while maximizing plan efficiency is key to creating a plan that increases employee engagement while controlling costs.
When employees are offered multiple plans, they make selections based on one simple factor: Cost. However, cost isn’t as simple as it sounds because there are:
- Costs out of paycheck
- Costs out of pocket at point of service
A low cost out of your paycheck might mean a HDHP with risk for large out of pocket expenses at point of service. Whereas, a higher cost out of your paycheck might mean lower cost out of your pocket at point of service.
Why is this important? Because the CLAIMS within each plan are what truly matter to sustain a plan long-term. When offering multiple plans, the employee’s total cost needs to be priced based on expected claims within that plan. Otherwise, you will create adverse selection – which is unsustainable long-term.
How you structure choice is what determines whether multiple offerings will encourage consumerism or cause adverse selection.