Depending on which source is referenced, healthcare expenses have been increasing anywhere from 6-12% on average year over year. We see employers getting hit with an unexpected 20% plus renewal that sets that company back for the upcoming year. Surely, employers are unable to continue and absorb these costs. Instead, these costs have been passed onto employees through higher deductibles (think prevalence of HDHPs), increased coinsurance rates and increased contribution rates for the employee. The employers have limited the damage done to their bottom line… but at what cost?
Since 2012, employees’ real wages (wages adjusted for CPI) have only increased about 10%. Contrast that with the...
On average, there are two dependents for every subscriber on a medical plan. When self-funded employers allow employee’s dependents on their medical plans, they accept the risk that comes with the dependent’s claims. For fully insured groups, carriers will often investigate the legitimacy of a dependent when that dependent files a major claim – and if it happens that the dependent is ineligible for the plan, the carrier will refuse to provide coverage. For this reason, it is extremely important for every employer to verify that all dependents on the plans are able be covered under the plan according to the certificate.
Unbeknownst to the employer, most medical plans have 4-8% of dependents on a...
Telemedicine: A Growing Trend Helping Employers Cut Cost
By: Curt Beckman, Axion RMS
When it’s two in the morning and your child is sick, it’s natural to think of a trip to the emergency room as the only way to receive immediate care. But a $300 copay for the ER doesn’t have to be your only option – with the utilization of telemedicine, it can become your last resort.
One of Axion’s strategies to help employers mitigate healthcare costs is introducing telemedicine services to their benefits offerings. Several of our clients provide telemedicine to reduce cost and increase the overall wellness of their employees – and the results are in.
This solution is a cutting edge, innovative approach that is yielding positive results for employers and employees. Telemedicine...
The new necessity in employee benefits is workplace wellness. Eighty-three percent of our employer partners believe wellness programs are absolutely necessary to attract and retain employees. Amidst an economy with record highs of employment, every perk an employer can offer solidifies the relationship with top talent – queue corporate wellness programs. Companies in various industries are recognizing the importance and relevance of wellness and are rushing to implement these programs. Beyond employee satisfaction, what is the corporate benefit of wellness? Most importantly, how will it affect an employer’s bottom line?
Axion applies risk management techniques, such as wellness program implementation...
Direct Primary Care - A New Alternative to Primary Care Physicians
By: Devon Bellamy, Axion RMS
With the cost of healthcare rising about 8.5% each year, employers must embrace creative solutions – or face extinction. By introducing risk management solutions, it helps employers not only protect their bottom line, but also anticipate the consequences of cost shifting to employees. Direct Primary Care (DPC) is a new, innovative solution that helps empower employees at an affordable price for employers.
DPC doctors charge a monthly “subscription fee” and typically don’t accept insurance. These are highly trained primary care physicians and health coaches who often see patients without copays, coinsurance or even prescription drug costs (varies by policy contract). By...
Pharmaceutical related costs make up a third of all health care costs. Naturally, many employers are now looking for creative solutions to help curb these costs and gain transparency to identify savings.
Axion has developed partnerships with companies that can provide a solution for this: Pharmacy Carve Out Programs. A pharmacy carve out program is a risk management strategy where a health care sponsor selects a Pharmacy Benefit Manager to administer and manage its prescription benefit. By using PBMs as a separate claims administrator from the employer’s health insurer, it removes the health plan as an intermediary for pharmacy benefits. Also, stand-alone PBMs can provide a more customized plan design strategy than...
Surgery Costs Continue Driving Employer Healthcare Spend
By: Chad Burdo, Axion RMS
Surgery costs represent the single largest component of United States health care spending at approximately $700 billion, or 31% of the total annual health care spend. Much of this cost is passed on to self-funded employers who continue to see their health care spend, especially spend related to surgery, skyrocket.
Beginning in 2018, Axion is able to introduce a solution that has been proven to reduce surgery costs 30-50% on average, while guaranteeing employees are able to be admitted to a Center of Excellence (top 25 percentile provider) in the United States.
This solution is an innovative approach that yields positive results for employers, employees and providers....
Employee Communication: An often overlooked aspect for improving your multi-year benefits strategy.
By: Brandon Collins, Axion RMS
Has your strategy for communicating benefits to your employees evolved in the past several years? If the answer is no, you are missing an important aspect of your overall benefits strategy.
Axion is impacting mid-market employers by implementing a market-driven approach to communications. What is this approach?
In the past, benefits communications were insignificant. The goal of communication was to update benefit guides or highlight sheets, keep forms available for employees, and provide an annual newsletter to summarize updates and improvements to benefits.
Today, you should focus on motivating employees to...
What is your risk tolerance? Many would argue they are either risk-seeking or risk-averse – you’re either all in or you’re not, 0 or 100% tolerant. When it comes to the traditional models of employer healthcare insurance, funding arrangements are the same: you’re either fully insured or self-funded. When you’re self-funded, you take on more of the risk, but by adding a captive program, you give yourself the opportunity to earn a dividend when your claims experience is favorable.
A Captive Employee Benefits Program is an insurance plan that pools companies for the purpose of sharing employee benefits insurance risk. Employers join a captive with other companies who are like-minded with the goal of...
Lower Your Healthcare Costs with Medicare Cost Plus
By: Devon Bellamy, Axion RMS
Medicare Cost Plus plans result in annual claims savings of around $150,000 - $200,000 per 100 employees for employers.”
Self-insured medical plan groups are becoming very prevalent – however, they are still experiencing increases in per capita medical costs that greatly exceed Consumer Price Index. A Medicare Cost Plus (MCP) plan may be a solution that fits your company’s needs in order to combat the rising costs of healthcare.
An MCP is a progressive healthcare plan that uses a Medicare pricing model for claims reimbursement. On average, these plans will pay 120% of the cost of Medicare pricing for certain doctor visits and procedures as opposed...