Who is legitimately responsible for the health care costs in this country? We have been conditioned to point the finger at Government, inexpressive insurance Carriers, or healing Providers. We have heard the endless barrage of blame, the charge of accusation, and the fury of fault-finding in the middle of these parties for many months now. Each would have us believe that the others are solely responsible for the problems in our health care system. Without question, however, there is shared blame and joint accountability. In expanding to the government, the large insurance carriers, and healing providers I would propose three added parties with culpability:
1) health insurance brokers
2) employers and
3) you and I individually.
Kaiser Medical
There has been and will be plenty more said of the role that the first three parties have had in creating the current situation. My intent in this 3-part series is to expose the role of the latter three groups and propose how these groups can legitimately become part of the solution.
Health insurance Brokers
To comprise brokers in this conference may seem self-incriminating since that is my profession. However, I do so with a clear conscience because of the coming that my firm takes when representing our clients. Just last week I was discussing trends of High Deductible health Plans with one of our local insurance carrier reps. She told me that she had recently heard a broker tell her, "I will not sell that product to one of my clients." The broker who made this annotation was referring to a High Deductible health Plan paired with an Hsa and the annotation was made in context of his commission. The carrier rep. Was astounded that the broker would confess to not showing a clear plan to his clients because of the impact it would have on his commission.
Utilization of a High Deductible health Plan (Hdhp) strategy will generate a mountainous and immediate discount in premiums - typically in the middle of 30 and 50%. You guessed it. The discount in premiums means a corresponding discount in commission for the broker. How many brokers are honest and ethical adequate to propose a strategy to their client that will succeed in a mountainous pay cut for them? Unfortunately, that is the way the ideas is designed and it creates an potential friction of interest unless the brokerage firm is built on other model. A model that measures success based on savings achieved for their clients. Under this model, the broker will always look first to take benefit of the savings created by High Deductible health plans when construction a proposal rather than looking at them as a last resort or only if the client asks about these plans.
The government has legitimately provided some very good options for employer-sponsored health care plans. Flexible Spending Accounts (Fsa's), health Savings Accounts (Hsa's) and health refund Arrangements (Hra's) offer separate ways to achieve prime savings and tax savings. If properly designed, these tax-favored plans can succeed in equal or good coverage for the employees at a lower cost to the employer. A properly designed plan that accomplishes these win/win outcomes must be done by a broker that specializes in the organize and supervision of these plans, not a broker that merely suggests them as an afterthought or upon request by the client.
From the 2009 Kaiser/Hret survey of manager -Sponsored health Benefits report, we gain understanding into why employers have adopted Hdhp's and what the outcomes have been:
72% of firms gift a Hdhp said the former reckon they began gift this option was to save on health care costs 49% of firms gift a Hdhp reported that the most victorious outcome has been the operate of health care costs An added 27% reported that the most victorious outcome has been the encouragement to employees to be good health care consumers (which, by the way, ultimately leads to lower health care costs) 82% of the employees enrolled in a Hdhp reported being whether very satisfied or somewhat satisfied with the plan while only 3% reported being very dissatisfied
Here are the surprising statistics:
Only 5% of the firms not currently gift a Hdhp reported that they are "very likely" to offer a Hdhp with an Hra in the next year Only 6% of the firms not currently gift a Hdhp reported that they are "very likely" to offer a Hdhp with an Hsa in the next year
(The Kaiser family Foundation and Hret, 2009, p. 166-167)
Why are so few clubs planning to start gift Hdhp's when the results have been so suitable for both employers and employees? Brokers have not done a good adequate job of promoting these types of plans and educating their clients on the financial benefits of utilizing a Hdhp. whether due to lack of product knowledge or a desire to hold their commission, there is fault with the brokerage business for not being more aggressive with the clear health care reform that the government has already enacted. Brokers must be knowledgeable adequate and ethical adequate to recommend, organize and implement these plans to benefit their clients. Employers need to find a broker who is knowledgeable and ethical adequate to recommend, organize and implement these plans for their company.
Reference
The Kaiser family Foundation and health study & Educational Trust (2009). manager health Benefits 2009 yearly survey (Electronic Version). 166-167.
official statement Who is Responsible For Unsustainable health Care Costs - Part I
No comments:
Post a Comment