It’s no secret that healthcare costs in the United States continue to grow (and in many cases, it’s employers and individuals that are bearing the burden of those increased costs). Part of that cost growth is related to forecasted economic factors … the stuff you expect like growth in wages and technology and facilities. But that doesn’t really account for the main driver of growing healthcare costs that impact you individually – or especially your business if you offer an employer-sponsored healthcare plan.
The main driver of cost growth is the administration of the plan. That’s right. Those “activities” that sit between the care providers and the patients. Like insurance claim processing. And verifying billing codes. And confirming covered benefits, maximums, minimums, etc. And often times – in fact in over 2/3 of employer-sponsored plans – those “administrators” are the same companies that provide insurance to protect against significant unplanned expenses. Large companies that are “for profit” businesses, and whose shares are publicly traded to drive returns for the company and for shareholders. Trading markets and shareholders expect year-over-year growth in profits and overall performance. Remember this.
In fact – upwards of 30% of ALL healthcare costs are attributed to the “administration”. And guess what – cost growth in healthcare plan administration has been remarkably higher as compared to the cost growth from care providers and facilities. And, concurrent with this alarming trend, healthcare companies are continuing to expand and absorb independent practices, hospital systems, and much more. Why? Because those areas represent opportunities to … you can guess … to drive growth and achieve more profits.
Now – healthcare administration is absolutely necessary. But make no mistake – there are other – and highly viable options – for administration, especially when these very large companies continue to focus on profits and increasing shareholder value.
And there is where you have an opportunity – if not a fiduciary responsibility – to explore other, better options. You can be innovative and make decisions that help your business – and your shareholders – to continue taking care of your employees while also driving growth in your business.
That’s we do. We help our clients get Healthcare that Works by challenging the status quo.
Contact us today for a quick no-obligation call to get started.
