Out Of Control Premiums
Health care is one aspect of business where employers feel particularly powerless. You can see that health care premiums and drug prices keep going up and up and up, but you feel like it's completely out of your hands. The struggle to keep your health care costs down while still providing your employees with an acceptable level of care is a problem that every business faces. And, it's unfortunate, but many business owners have been conditioned to just kind of accept this as the norm. However, that’s not actually the case. Containing the cost of your employee health plan and managing how the plan performs each year doesn’t have to be completely outside of your control. There are ways to reign in health care costs in a safe and sustainable manner. You just have to get creative.
Failure To Deliver
No business is an island. You must work with a number of partners outside of your own business to get things done and ultimately you're responsible to consumers or your clients. Likewise, there are countless consultants out there who claim that they can help you keep your costs down. Separating the wheat from the chaff in this field can be difficult.
Ending up with a partner who overpromises and underdelivers can be worse than doing nothing at all. On the other hand, businesses who try to go it alone often face significant challenges as well. Cost containment is a specialized skill that doesn't necessarily come naturally no matter how lean and effective you think your business currently is. There are experienced consultants who are also qualified cost containment strategists; and with the real deal- you can achieve real bottom line results.
It's Not Always A Matter Of Waste
One unfortunate truth is that high operational costs aren't always a matter of wasteful spending. Sometimes you can be perfectly prudent and still run into spending issues. It's all a matter of your industry, location, and the particulars of your operation. This turns things into an optimization problem. How do you get the best results for the lowest cost? This requires precise, deliberate cuts to areas where you can afford them the most. When in doubt, opt for surgical cost cutting rather than broad strokes. By this, we mean implementing only strategic and focused changes that can be proven to yield impactful results.
Knowledge Is Power
Knowing when and where to cut costs requires a deep understanding of the issues facing your business. Be wary of consultants who claim they can reduce your spend without really understanding where you're coming from. They should exhibit a deep understanding of their own field but also, be interested in understanding your field as well. When specifically looking for a health cost containment strategist, your consultant should know the ins and outs of healthcare billing and claim management. They should be able to speak to the root causes of your health plan cost influx and beyond generic phrases like “rate increases” and “trend”. They should not only be keeping up with each and every new rule and regulation handed down regarding health insurance but also be up to date and practiced with the most innovative strategies available for reducing your spend in this area. To put it frankly, if you are hearing the same old recommendations like “changing plans”, “increasing deductible”, and “switching carriers” then you’re using the wrong partner and will never achieve any real, long term reduction to your employee health plan spend.
While it would be nice if there were a single formula for keeping costs down that we could all make use of, the truth is more complicated. That's why cost containment specialists exist. At Summerlin-Roberts we leverage our expertise in cost containment to help businesses impactfully reduce their expense of maintaining a quality health insurance program for their workforce. This makes for happier employees and leaner budgets to boot. For more information about providing affordable health insurance that will satisfy your employees, please contact us today.