SKYROCKETING HEALTHCARE COSTS
Consortiums are Easing the Pain of Skyrocketing Healthcare Costs
In the past, agencies, businesses, organizations, local governments, and uninsured consumers offered their employees a vast array of health insurance options through multiple carriers. However, the continued spike in annual health insurance costs to employers over the years has caused many organizations and businesses to tweak their offerings.
Rising health insurance costs have been forcing employers to decrease the number of choices they offer to their employees in an effort to make the changes easier to bear. However, new programs such as consortiums can help members by easing the pain of skyrocketing healthcare costs. A healthcare consortium-group purchasing for health insurance allows member companies with a defined minimum number or more employees being eligible to join. A particular state’s regulations may play a role in determining the required minimum number of employees.
Member companies participate and pool resources. Consortiums are often overseen by a board that manages the health insurance exchange. Members may also hire a third party to be the administrator of the program.
Benefits of a Health Insurance Consortium
Some of the benefits of group health consortiums include:
- The ability to control cost and stabilize rates
- Members have access to valuable claims data. With access to specific claims data, programs can be customized to that will have a favorable effect on the health and well-being of each employee. Achieving overall company health can potentially produce a financial gain for both member firms and their employees
- Regular reporting helps the group stay informed on utilization
- There may be direct access to the management team and the underwriter from the carrier
- Members can access an extensive local and national network of healthcare providers with differing specialties in medical, dental, and vision care
- Typically, a low annual average increase without any plan changes
- A dedicated support team for client engagement
- Transparency and full disclosure of all costs that make up the health care dollar. Members can see how premiums are developed and disbursed
- Allows for individual plan design with each member. A consortium may even use the member’s same healthcare provider, and simply alter the funding mechanism from a fully insured plan. HSA and HRA options are also feasible
- Ensures safety, security, and protection. If claims are lower than anticipated claims in a given year, a fund builds up that can be used to offset future rate increases. This provides security and protection against upward swings in rates and costs and minimizes the risk of substantial cost increases
A Consortium Could Be a Substantial Advantage
A consortium helps employers cut their health insurance costs. Many employers feel it’s a win-win situation, as they pay less, their employees pay less, and there is more choice. With today’s healthcare market is changing rapidly, a group purchasing consortium may offer an alternative solution.
You may find that joining a consortium is a substantial advantage. Understandably, you may have questions about whether it is the right fit for your business or organization. To find out more about the eligibility requirements for a healthcare consortium, contact a consortium planner today. It just might be the solution you have been seeking. Some of the beneficial aspects of:
23 locations close to where you live or work
Full-time providers with more appointment times that better fit your busy schedules
Members choose their own primary care provider
Stable network of qualified providers using electronic medical records eliminates fragmented care