Group Health Insurance

What causes Group Health Insurance premiums to spiral out of control?

 

There's no doubt... Employee benefits, especially group health insurance, are the underlying currency of today's business world. They wield power that controls the entire employee force and can be one of the most effective revenue generating tools any business owner can have -- because benefits have the power to influence employees, create loyalty, alter beliefs, and even shape the destiny of your business. However, they can also be a bottomless pit of wasted business dollars. If your group health insurance program is not properly structured, planned and implemented, premiums can sky rocket out of control.

What causes these premiums to spiral out of control?…As experts agree; our health care system is riddled with inefficiencies, excessive administrative expenses, inflated prices, poor management, and inappropriate care, waste and fraud. These problems significantly increase the cost of medical care and group health insurance for employers. Health insurance expenses now threaten the US economy more than all other economic threats combined, including paying for the war in Iraq, repairing the damage of terrorist activities, and the retirement needs of aging baby boomers. *

How does it impact your business?

• The cost of employer-sponsored health benefits are increasing at 15% or more per year, few companies expect their profits to increase at even half this rate over the long term.
• According to a 2007 Hewitt Associates report: Preliminary HMO premium rates analysis shows an 18.2 percent increase in 2008 for the Southeast and the Midwest — the highest rate increase in four years.
• The annual premium for an employer health plan covering a family of four averaged nearly $11,500. The annual premium for single coverage averaged over $4,200.
• According to the Kaiser Family Foundation and the Health Research and Educational Trust, premiums for employer-sponsored health insurance in the United States have been rising four times faster on average than workers' earnings since 2000.
• The average employee contribution to company-provided health insurance has increased more than 143 percent since 2000.
• Average out-of-pocket costs for deductibles, co-payments for medications, and co-insurance for physician and hospital visits rose 115 percent during the same period.

What are the main culprits? A significant part of the money employees and employers pay for group health care insurance goes toward prepaid medical care that most consumers never use; therefore most U.S. consumers waste thousands of dollars each year on their health insurance. The first $2,500 of a family annual medical expenses are typically spent in $50 to $15 increments in 20 to 30 different transactions – which costs the insurance company the $2,500 plus an additional $500 to $1,500 in transaction processing fees. *

So, how do you fix it? Most health insurance carriers would lower your annual premium by roughly 120% of the increase in your annual deductible. Approximately $3,000 savings in annual premium for a $2,500 increase in your deductible – putting you ahead by at least $500 a year, even if you become very ill. All this means is that the main benefit of increasing your annual deductible on your group health care policy is NOT the money you can save – the main benefit is that it puts you in control of where you spend your first health care dollars* and allows you to select the medical providers of your choice, vs. giving full control to the insurance carriers of where to send you, what doctor to see and IF they will even pay for your medical need.

Is getting a High Deductible plan a real solution? Absolutely – but all by itself it won’t do the job. In order to control the healthcare costs of your business, you must first control the healthcare of your employees. Additionally, you cannot expect loyalty from your employees simply by raising the deductible and pushing more out of pocket on them…if anything; this will have the opposite effect and your employees will actually resent you for doing it.

What is your organization to do? The solution when you chose this high deductible route, it to pair it with a well implemented Wellness Program that can help your employees get healthy again and therefore reduce your corporate costs! …but, it is naïve to think that just by asking your employees to become healthy, they will. As a matter of fact most H.S.A. programs and/or High Deductible plans, implemented without a sound Wellness companion, fail.

What comes next? As the president of Group Benefit Agency, I have a simple philosophy when it comes to group health care insurance…you either control the health care of your organization, or it will control you. As you have seen, if it controls you, it pops its ugly head in double digit premium increments and your business is the one that loses. Increasing group health insurance cost is the most dangerous trend facing all businesses today and the price of inaction will severely affect your bottom line. Your business cannot afford to look the other way and “hope” things will get better…they just won’t. Either you take control of it now, or it will eventually control you!

Is there any proof? There is overwhelming proof that exposure to wellness programs significantly do change an employee’s health and there is some compelling evidence that a sizable portion of the billions of dollars currently spent by employers on health-related costs is preventable by means of wellness promotion programming:**

• Health Care and Insurance Costs: A number of studies provide evidence of lower medical and insurance costs for participants in wellness promotion programs, particularly programs involving exercise.
• Decreased Absenteeism: Absenteeism has been shown to be impacted by employer wellness promotion programs. The evidence indicates a significant reduction in absenteeism and resultant dollars saved as a result of employee fitness programs
• Enhanced Performance, Productivity and Morale: A number of employers with health promotion programs report documented improvement in job attitude, work performance, energy level, and/or overall morale among program participants--all critical factors in enhancing productivity
• The Bottom Line: There are numerous examples of worksite wellness programs results that have been reported by individual employers, most importantly studies show that companies can save $3 for every $1 put into an employee wellness program.

Why hasn’t your agent come up with these alternatives? The general problem lies in the fact that agents and brokers are paid “commissions” based on the percentage of the sale. Therefore, your agent or broker may discourage you from restructuring your current plan because a lower premium means he will be getting less income on your group.


They aren't benefits strategists, they're insurance generalists, life captive agents or Property & Casualty agents; therefore they are not up to date with the dynamic and rapid changes taking place in the healthcare insurance industry and because of the overwhelming amount of information, laws, plans, options and continuous changes, they have a tendency to allocate all groups in a one-size-fits-all company-sponsored group health insurance plan.

That's why I promise (and guarantee) every client the most cost effective, employer performance increase group health care program possible, and I deliver on that promise each and every time. My job — my survival — is based on designing the most compelling, money-saving, effective benefits plan for my clients and to provide the most outstanding service…my livelihood…and that of my business, depends on it. So, as you can imagine, I take the analysis, planning, design and implementation of your group health care program very seriously. As our company slogan says, “Healthy Employees = Healthy Bu$ine$$” and you get that from each wellness program and health care plan design you get from us... guaranteed!

How can I guarantee your success? Group Benefit Agency uses the four basic elements of a well planned group health care program:

• A thorough and comprehensive fact finding of your individual group with our Fast & Easy Questionnaire in order to understand your corporate goals, your specific situation and what fits your organization best.
• A sound analysis and cost reduction approach to structuring your group health care.  The ultimate goal is to increase your organization’s bottom line while offering employees what they want...a quality affordable medical plan.
• A financial protection group health care insurance against the expenses of an accident or illness for your employees.
• A solid and proactive wellness program that consists of two parts
• “Office Gym in a Box” program: Let your employees get the vital body they've always wanted, while increasing your company's bottom line by reducing your health premiums and increasing employee performance. The "Office Gym-in-a-Box" model makes Acceleration Training™ exercise accessible for use in your office setting. Not only do three 15-minute workouts a week fit into your office lifestyle, the sleek design and user friendly settings, help "Office Gym-in-a-Box" fit harmoniously within your private office. The "Office Gym-in-a-Box" is supported by decades of clinical application and research. Give your employees an in-office exercise program designed to accomplish specific weight loss goals; whole body massage and relaxation; health rehabilitation and therapy; and ways to train their body and get the competitive edge...and all it takes is a 4' x 4' space.
• A “Wellness Coach” program designed to proactively control the healthcare of your employees: Our Wellness Program provides a basic yet comprehensive wellness initiative that assists employees in making behavior changes in areas that cost employees and employers significant sums of money in health care costs. It serves as a useful preventive health program that relies on personal initiative and regular employer communications where every participant can benefit from working one-on-one with their health coach. Some of the behavior modification health coaching include: Nutrition and weight management; smoking cessation; fitness and exercise; menopause; stress management; management of chronic conditions (such as high cholesterol, high blood pressure, diabetes, asthma, cardiovascular disease, back pain, pre-and postnatal care) and complementary care (chiropractic, yoga, acupuncture and massage).

The way these elements are organized is referred to as “Healthy Employees = Healthy Bu$ine$$”. These principles are the backbone of a successful cost reduction, performance improvement approach to controlling the double digit group health care cost premium increase!

Unfortunately... just LOOKING good on paper is not good enough! In fact, it's the IMPLEMENTATION of the wellness program you choose that will determine your company’s level of success. Why? Because employees will not take the time to go to the gym, or eat healthy or change their habits just by you telling them to do so, you have to bring the wellness into your business environment for them to proactively get involved and eventually control your healthcare costs! Properly crafted, high-impact wellness will change their attitude and persuade them to take action. It's powerful stuff, and if skillfully executed, works every time!

Let me tell you a little about what I've done and seen in my 14 years of employee benefits and group health care insurance and my 20 years of entrepreneurial life. Then you'll have a better understanding of why I'm so confident I can boost your employee’s performance and reduce your corporate costs to levels you've never imagined possible.

1983: Singapore - Maximum fun, maximum profits!
Fresh out of the University of California at Berkeley, I was hired by a Singaporean firm in Southeast Asia as a junior designer. I was lucky enough to have worked for a superb businessman and a great mentor. Every day, he took the time to show me the ropes on what I should and shouldn’t do in business. It was at that point in my life that I decided that business was definitively for me.

1985: Bolivia - A stressful learning curve!
After I fulfilled my contract with the Singaporean firm, I went to work for a Bolivian firm in South America. At every step of the way, I honed my entrepreneurial skills and immersed myself in the business world. Over the years, I learned exactly what creates loyalty in people and motivates them to take action.

1991 United States - MetLife
After I moved to the United States, it was clear to me that I wanted to own my own business and I wanted to be somehow involved with the employee field. That is when the benefits industry came into my radar. I joined Metlife and although my training there was superb as a life insurance agent, it really didn’t show me much on how to help businesses and their employees. In fact, I was told to sell all of these plans, without any training whatsoever! All my training was related to the life insurance industry, nothing, zilch, zip, nothing, nada when it came to employee benefits.

Even though I was learning about life insurance and not about benefits, I still managed to get the Leaders Conference Award for Outstanding Achievement, The Record Breaker Agency Vice-President Award; the Pacetters Award, Keep the Promise Award and the Eagle Award for the Miami Region. After two years there, it was clear that I was not going to further my knowledge and quest to get involved with the business world nor the benefits field.

1993: My own business - The best decision ever!
In 1993, I established my own insurance agency and for the next 14 years provided a wide range of employee benefits solutions for numerous corporations. I worked with for-profit and non-profit organizations, small and large and everything in between. During this time we earned numerous awards:

• United Healthcare top 100 agencies nationally
• Neighborhood Health Partnership top 5 agencies (1996, 1997, 1998 & 1999)
• Humana Presidents Council 1998 & 1999

While I had incredible success in the benefits business and superb client retention, -- uncommon in the benefits industry -- (I am grateful that my clients valued my benefit's knowledge and skills), I often felt like there was something missing. It was heart breaking to see my clients struggle to meet their ever increasing premiums and watch the insurance companies deny claims. It upset me that there was not much I could do; I could feel the frustration in their voice. So in 2006 I decided it was finally time to take a stand and Group Benefit Agency and “Healthy Employees = Healthy Bu$ine$$” was born!

Fourteen years and numerous industry awards later, I'm proud to say that the group health care industry has been very good to me, and better yet to the overwhelming majority of my clients.  Helping businesses control and sustain their group health care plan expectations has been extremely gratifying and a heck of a lot of FUN! I love this business and my passion to make a difference in this industry increases as years go by.

Are YOU ready for some good times?
If your Group Health Care costs has got you pulling your hair out, if you've watched helplessly as your Premiums go up and your company’s earnings continue to melt away, perhaps it's time you explore a bold new approach for your next Group Health Care benefits program...

You WILL be 100% delighted... that's 100% Guaranteed!
Just imagine... no more nagging doubts about the success of your next Group Health Care & Wellness Program... no more bickering with your office manager to "get it right"... and most importantly, no more group health care dollars squandered on a lifeless, ineffective a one-size-fits-all company-sponsored group health insurance plan.

Now, you can look forward to pumped employees... and have lots and lots of cash-savings in operating costs.

Enjoy complete Group Health Care renewal cost peace of mind with just a click of the mouse. Start your Group Health Care Analysis Design right now! It's fast, effortless and comes with a 100% Satisfaction Guarantee. Act now, before your premiums keep escalating out of control!

I solemnly promise killer value for every dollar you invest in your Group Health Care Program, and I guarantee you will be amazed at what a truly effective health care plan, paired with a proactive wellness program, can do for your business bottom line!

Sincerely,

Jacqueline Burgoa, President
Group Benefit Agency, Inc.