1 minute read
Have you ever been in a store that is consistently having a sale? 40% off…. 50% off…
Does that ever make you think… maybe the price they need you to pay to meet their revenue goal is actually 50%?
Or, maybe they are still profitable at 60% off…. or even 70% off??
Don’t you feel kind of burned when you figure out that you overpaid?
….I might… ah.. have some experience with this kind of shopping!
Reframe that to your healthcare budget:
Let’s say I am your plan administrator… and I tell you that we are going to charge you $800,000 to manage your healthcare plan (common if you have about 125 enrolled in the plan in Texas).
If you are knowledgeable about the medical loss ratio, you would believe that 20% of that $800,000 premium, or $160,000, would be the cost to administer the plan (administration, stop loss – and profit).
The remaining 80% would be spent on claims: $640,000.
What happens if your claims are actually 50% of the total? $400,000 in claims costs.
Do you keep the difference? – $240,000
Or 40% of the total? $320,000 in claims costs.
Do you keep that difference? – $320,000
What if your claims are 150% or $960,000? There is stop loss insurance for that!
So now let me ask… don’t you want to KNOW what has been happing in your health plan? Maybe find a way not to overpay… but still have protection if there is a serious problem?
Surprise! There is a way!
Listen here for how to change your response and get a different (better!) outcome: