Next Generation of Health Plans

Back in 1992, the Clinton White House focused on the, then current, and now here, crisis in healthcare. Over the past 10+ years, the only real change that had occurred is that it costs at about 200% more for health insurance. Even through the huge growth of the US economy, healthcare costs are taking up a larger share of GDP compared to 1992. It is estimated that in 2002, healthcare costs represented nearly 14% of the GDP.

Over the last ten years we have seen the following shifts in healthcare: More legislated benefits, guarantee to issue group plans to 2 employees, State price controls for small groups, PPO's being the norm and Medical Savings account legislation. We believe that a June 2002 IRS ruling may finally bring significant power to small groups. HRA's. HRA's (healthcare reimbursement arrangements) are a partial self funding arrangement that allows employers to and employees alike to save premium and out of pocket costs in a tax favored arrangement. Those with HMO coverage will not find HRA's to be beneficial, but those with indemnity or PPO plans can.

The newest health plans for providers are controlling premium costs by making the insured more of a participant in controlling their own costs by increasing copayments or removing them all together, removing or or reducing non-PPO network benefit levels, and higher deductibles. Employers then can fund some of those expenses by setting up reimbursement plans that reward those who use their healthcare dollars more intelligently. Look for Fortis, Humana, Guardian and United Healthcare to be the leaders in this new generation of plans.

The current PPO system fails those who have an occasional claim and rewards the over-consumer. 75% of American's spend less than $500 per year on their healthcare, yet family premiums can be nearly $10,000 per year. The new "consumer health plans" reward the low spending family and protect against catastrophic loss while reducing premiums, sometime specifically.

Let us put together a cost competitive plan for you.