Health Care Costs For Your Shop...
How much is TOO much, and what would it take to answer that question??
A couple months ago, I received notice that my health care provider for my Shop (Health America) was going to bump my renewal rates by over 39%!
That's just so wrong I can't even put it into words. Obviously they either didn't want our business anymore, or the experience rating for our small group (6 members out of 8) had hit a rough patch with some pretty high payouts. Now, as an employer, I'm not allowed to neb into the personal aspects of my employees. But I can't remember any major medical problems with ANY of my employees or their spouse/family.
So I asked my broker at Duncan Financial to get some competitive quotes from the other big ones (Highmark and UPMC). Let's compare, apples to apples and see if this was just OUR provider, or an industry trend.
Well, after a couple nervous months of filling out paperwork and waiting, the results finally came back just a week before our renewal was to take place. And the numbers were SHOCKING to say the least.
Our current provider wanted to increase my rates by almost 40%, and the other two were showing apples to apples, same plan coverages of 12% and 35% - DECREASE!!
That means, not only would I be saving money by not seeing an increase this year, but we would be really saving money as in lower out of pocket expenses. And the amounts were significant. After meeting with all of my employees together to discuss the possible changes, we came to the conclusion to alter our plan a little by introducing a small deductible.
This change, along with the already mentioned 35% decrease would save each employee (if they were covered as an individual) about $600 per year of out of pocket costs. That doesn't even include my savings as a 50% plan contributor (double that). And the ones with family coverage would save even more! That's a total plan savings from our current one of over 40%, add the 40% increase and that's an 80% swing in the other direction.
All told, I will end up saving this next policy year about $9,000 in matching premiums that I pay - yes thats $9,000 less I will have to pay in expenses in the next policy year.
I guess a little competition lately has been good for us...
THATS HUGE!!!
So here's what I recommend:
- Get competitive bids NOW for your next renewal period - don't wait
- If you think you can't afford it, check it out now - looks like the rates are lower
- always be looking at your 'fixed' expenses every year to find new ways to save more money - especially in these times
Stay tuned for more great Sales, Profits, and Marketing training classes coming soon - even a few brand new ones too!!
Makes sure you're on the email list by going to:
www.Shopdoctor.com
Dave Striegel
RightWay Automotive Solutions
dave@ShopDoctor.com
(412) 543-8946
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