How Cost of Health Insurance Is Affecting Business

This is part 2 of my 3 part post. 

 

If you are a small business owner you know how hard it is to keep good employees.  One way business’s have done this is by offering employee benefits.  The cost of these benefits have gone up every year, the biggest driver of these is healthcare insurance.  The following shows what has happen to these cost.

This information is from the Kaiser Report (EMPLOYER HEALTH BENEFITS 2010 REPORT) 

 You can get the full report HERE.

The key findings from the 2010 survey, conducted from January through May 2010, include increases in the average single and family premium, as well as in the amount workers pay for coverage. About a quarter (27%) of covered workers have a deductible of at least $1,000 for single coverage and a greater proportion of workers are enrolled in high-deductible health plans with a savings option (HDHP/SO) than in 2009. Firms responded that they increased cost-sharing, or reduced the scope of coverage, or increased the amount workers pay for insurance as a result of the economic downturn. The 2010 survey continues to track the percentage of firms offering wellness benefits or health risk assessments and also included questions on health plan quality indicators and benefit changes made as a result of the Mental Health Parity and Addiction Equity Act.

The average annual premiums for employer-sponsored health insurance in 2010 are $5,049 for single coverage and $13,770 for family coverage. Compared to 2009, premiums for single coverage are 5% higher ($4,824) and premiums for family coverage are 3% higher ($13,375). Since 2000, average premiums for family coverage have increased 114%. Average premiums for family coverage are lower for workers in small firms (3–199 workers) than for workers in large firms (200 or more workers), ($13,250 vs. $14,038). Average premiums for high-deductible health plans with a savings option (HDHP/SOs) are lower than the overall average for all plan types for both single and family coverage. For PPO's, the most common plan type, the average family premium topped $14,000 annually in 2010.

As a result of factors such as benefit differences and geographical cost differences, there is significant variation around the average annual premium. Twenty percent of covered workers are in plans with an annual total premium for family coverage of at least $16,524 (120% of the average premium), while 19% of covered workers are in plans where the family premium is less than $11,016 (80% of the average premium).

In 2010, covered workers contributed a greater share of the total premium, a notable change from the steady share workers have paid on average over the last decade. Covered workers on average contribute 19% of the total premium for single coverage (up from 17% in 2009) and 30% for family coverage (up from 27% in 2009). As with total premiums, the premium shares contributed by workers vary considerably around these averages. For single coverage, 28% of workers pay more than 25% of the total premium while 16% make no contribution.

Fifty-one percent of workers with family coverage pay more than 25% of the total premium; only 5% make no contribution.  Looking at dollar amounts, the average annual worker contributions are $899 for single coverage and $3,997 for family coverage, up from $779 and $3,515 respectively in 2009. Workers in small firms (3–199 workers) contribute about the same amount for single coverage as workers in large firms (200 or more workers), ($865 vs. $917), but they contribute significantly more for family coverage, ($4,665 vs. $3,652).

NOTE: There was another 10% increase in cost in January 2011. There is no sign that these increased costs are going to slow down anytime soon. Individual plans have followed suit in cost increases.

The following is an example of what happens to your insurance dollars.

ABC co. inc. insures 100 employees. The national Average for a single person is $5000 per year. Cost to the company is $500,000.00 for the 100 employees. On average 90 employees will get about $450.00 annual benefit, 3 employees will get about $5000.00 annual benefits and 7 employees will need be hospitalized.

Average cost for a hospital stay is $30,000.00 of which the insurance co. will pay an average of $10,000.00 after they take there provider network discount. So company wide average benefit paid out is $125,000.00 annually. This means only $.25 of each dollar paid out in premiums goes to your actual healthcare.

As small business owners Jo Anne and I had to find an answer to this problem.  This is what leaded us to starting JE Health Care Solutions.  There are answers out there that puts us in control of our healthcare and cost, but if you don’t know what they are it is hard to deal with.   We went several years with out healthcare coverage because we could not afford it, and were lucky that we did not need it. 

The purpose of this series of posts is to try to give you the information that everyone needs to know.  The 3^rd post will give you some answers to the problem that I hope will give you some options to consider.

Remember you can download my e-book for free at the following link.

Is the High Cost of Health Care Insurance Killing your Budget Part 5 "A Solution"

Today I want to offer a Solution to the problem of our Health Care Delivery System that we have today.  The short answer is to get out of the system.  So how do we do this?

In the first part of this series I gave you an example of what happens when you go to your doctor for a basic office visit.  His cash price is $100 for an office visit, but with health insurance he only gets the PPO Allowable of $50.  You pay part of the PPO Allowable with your co-pay and the insurance pays the other part. 

Now let’s look at the numbers:

Yearly cost with Health Care Insurance:

The National average cost for a family of 4 for health care insurance is now $800 to $1100 per month.  For the purpose of this example we will use the low end of $800 per month or $7200 per year.  The average family will go to their doctor 6 to 8 times per year.  If you pay a co-pay of $25 per visit and your family goes to the doctor 8 times a year that is another $200 per year.  So now you are at $7400 for the year.  Another words your are paying $7200 a year for the privilege of paying a $25 co-pay 6 to 8 times a year.  If this makes sense to you then I cannot help you, but if you are like me this does not make sense than continue reading because I am going to show you a solution.

A Solution:

Direct Concepts Healthcare offers a solution to the problem.  By putting you directly into the PPO network we remove the insurance company from the equation.  This way you and your doctor control your health care, not a third party that is more concerned with making a profit and controlling their cost than your health care, and not some Government panel that could care less about you or your family.

So how does this program work?  Direct Concepts uses two of the major PPO Networks, PHCS and Galaxy.   Let’s look at how this works with the numbers.

Yearly Cost With Direct Concepts Healthcare:

Direct Concepts Healthcare cost $88 dollars a month per family.  There are no limitations and pre-existing conditions do not matter.  That means you pay $1056 a year instead of $7200.  The program includes prescriptions, Dental, Vision, and much more.   When you go to the doctor with our program you would pay the PPO Allowable which in this case is $50.  That means once again it your family goes to the doctor 8 times a year you would pay $400 for the year.  That means our total would be $1456 for the year as compared to $7400 with traditional health insurance.   Direct Concepts work's the same way with Hospitals, with our patient advocates working on your behalf with the hospital to re-price your bill.  To give you an example one of our clients had to have knee surgery, His hospital bill was $10,588.26 the re-price under our plan was $1,750, a saving of 84%.   I can show several other examples but you can expect a 60 to 80% savings and some time more on hospital cost.  The point is you can have control and cost savings with our program.

If you want to learn more CLICK HERE and let us show you how you can have total control of your and your family’s health care at great savings.

I hope with this 5 part series I have helped you understand how the health care delivery system works and the problems it is causing for you and your family’s health care.

Is the High Cost of Health Care Insurance Killing your Budget Part 4

Today lets talk about the other 2 groups that have the finger in your health insurance dollar pie.  When you go to the doctor he has a sheet that has a long list of number codes on it this is the CPT4 codes.  Let me explain what these are.

With a complex network of providers, there has to be a way to ensure standardization.  This is done with the CPT4 codes.  CPT4 codes organize all of the services available for proper pricing and documentation.  When a doctor files a claim, he or she must provide a CPT4 code for payment.  For each procedure there is a code naming that procedure.  The price that is attached to that code is known as the PPO Allowable.  Why is it called PPO Allowable?  Since the amount charged is all the PPO will allow a provider to collect, it is called a PPO Allowable.

Guess who owns the copyright to the CPT4 codes?  The AMA so every time the code is used for a claim the AMA makes money for the use of this code.  Just think how many millions of times a day these codes are used in a claim to the insurance company?  To the AMA it is the goose that laid the golden egg. 

Who controls the medical schools?  You guessed it the AMA, so this is where future doctors are taught the way to set up a practice is to sign up with as many insurance programs as they can, and file as many claims as they can a day.  Are you now understanding why it is a health care delivery system and not health care. 

Your doctor is at a huge disadvantage in this system because he/she cannot give their patients the time that they would like to.

They have to see as many patients as possible just to be able to keep their doors open.  That is why so many doctors are going to a cash practice.  This is where Direct Concepts Healthcare comes in, we allow the doctor and patient control over the patients health care.  Because they get the full PPO Allowable at the time of the visit, and don’t have to pay people in their office to deal with all the insurance companies paperwork and delays.  This lets the doctor spend more time with his/her patient the way it should be.

Now lets talk about everybody’s favor topic, the Government and the Politicians.  Yes thy have their hand in the pie too.  First we had Medicare and Medicaid form Lyndon Johnson, this was the first big step to government control of our health care.  Now we have Obamacare,  the complete take over of our health care.  If you noticed the insurance companies, Drug companies, AMA did not say much during the hearings in congress on Obamacare.  That is because they helped write part of it.  The insurance companies love it because it will put everybody into the health care delivery system.  Plus it will let them get rid of the agent’s because of the states health care exchange’s that have to be set up.  On top of that we are going to have 15 bureaucrats making medical care decisions for you instead of you and your doctor.  I know you are thinking but won’t this bring down the cost of health care insurance.  It may a little but don’t count on it.  So far all it has done is increased the cost.  The biggest problem is the control part of Obamacare.  There is a way out and I will tell you about it soon.

How many of millions dollars the insurance companies give to the re-election of the politicians every election?  Where do you think the money comes from?  Yep it is part of the 75 cents that you never see of your insurance dollar.  Yet they don’t have to have the same health care or lack thereof, they have their on.  Well you can have your own too, by opting out of the health care delivery system. 

Here at JE Health Care Solutions we are ready to show you how.  The Direct ConceptsHealthcare program does just that.  Click on the contact button on the right hand side of the blog and enter you information and we will get back to you as soon as possible.  Or go to our web site at 

JE Health CareSolutions.  Each person is different and has different needs so we work with each client to meet their needs.  Or you can call: 865-357-3379 and Jo Anne or I will be glad to answer your questions.

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Is the High Cost of Health Care Insurance Killing your Budget Part 2

Yesterday I told you what happens when you go to the doctor’s office and use traditional health care insurance.   Today we are going to talk about why the system works this way.  First of all you need to understand who controls the health care industry. 

1.     Insurance companies

2.     Drug Companies

3.     AMA

4.     Government

For over 50 years the insurance companies have been working to control your health care by convincing us that you have to have health care insurance.  They have done this by working with unions, Governments (Local, State and Federal) and thru commercials on radio and TV.  By convincing us that a “third party payer system” well offer the people the best health care possible at the lowest cost.   Well we know now that this is not true.  What has happen is we now have a health care delivery system controlled by the insurance companies and others and no control by the patient or the doctor.  I am sure you have noticed how people from other countries come to the US for medical treatment at least those that can afford it, because they can get the best treatment in the world here.  The difference is they pay cash for their treatment.  So when some political figure says our health care is not good here in America they are lying to you, because we have the best medical care available in the world.   What is not working is the health care delivery system we have.   Our health care should never be controlled by anyone but ourselves and our doctor’s. 

So how do we change this?

 

Start by taking responsibility for your health care.  When you go to the doctor pay cash for your visit.  I will explain how soon.  Quite going to the doctor every time you have a cold are such minor ailments, and justify it by saying all I have to pay is a $25 co-pay.  You are forgetting you are also paying $700 a month for the privilege of having that $25 co-pay.    

Remember by making this change you are now buying direct which is how we buy everything else.  You don’t buy car insurance to cover gas, oil changes, tires or minor repairs so why should you do anything different with Health Insurance.   If you want to know how to buy your Health care directly CLICK HERE.  By having Direct Concepts Healthcare you are now out of the health care delivery system and can now afford to pay cash when you do go to the Doctor.  Plus have control of your health care instead of the insurance companies.

Be watching for part 3 tomorrow that will continue your education on Health Care in America.  In the mean time remember:

 Take Control Of Your Health Care starting TODAY!

For more information you can click the contact button on the right enter your information and we will get back to you as soon as possible.

Is the High Cost of Health Care Insurance Killing your Budget

According to the Kaiser Foundation 2010 report, the cost of employer sponsored health care insurance has gone up 46% since 1999 to 2010 .  This means the national average of health insurance is now costing about $13,770 for family coverage per employee per year, as compared to $6438 in 1999.  At the same time the average deductible has gone from $500 to $2500 during the same time.  This means you are paying more and getting less.  Where most insurance companies use to have an 80/20 split after the deductible was met, they are now starting to go to a 70/30 split and in some cases a 60/40 split.  Individual plans have risen at about the same rate.

So what is the answer? 

The first thing you need to do is get out of the health care delivery system.  Health care delivery is what we have now, not health care.  You need to take control of your health care as an individual or as an employee and quite expecting someone else to do it for you.  To do this we must find a way to control the cost as well as control our own health care.  If you are a business owner, and it does not matter what size form the sole proprietor to a corporation you have to take control of cost and health care, and help your employee’s do the same.

The first step to doing this is to become educated about our health care delivery system  and why it has risen in cost at such a high rate.  One place to get a quick education is at Care Liberty.  Dennis Rowley has worked as an insider in the health care insurance industry and has a lot of the answers.   Click here for the video:   Problem with third party payer system

Here is a quick example of how it works.  You go to the doctor whose cash price for a visit is $100, you pay a co-pay (if you have a health care policy),  the doctor files the paper work with your insurance company.  The insurance company then pays the doctor not the cash rate but the PPO Allowable which in this case is $50.  You have already paid $25 so the insurance company pays the other $25.  Lets say your policy cost you $700 a month.  That means you paid $725 for that office visit that month.  The average family goes to the doctor 6 to 8 times a year.  So you are paying $8400 a year for your policy and $200 a year for doctor visits for a total of $8600 for the year.  On average for every dollar you spend on health insurance you get a 25 cent back.  Is that a smart investment?

I don’t think it is.  If you got that kind of return on any investment you would be broke very quickly, because you are losing 75 cents on every dollar you are investing.    

Now what happens at the doctor’s office?  He has to turn your file over to someone in is office who does the paper work to file your claim with the insurance company.  The insurance company has 30 days to respond and usually what happens is they sent a letter back to the doctor office and want to know why you had come to see him.  The insurance company has another 30 days to respond and if the doctor is lucky he may get is $25 from them.  Usually it takes 60 to 120 days before he sees that $25.  He has to pay for is office overhead and expenses so he may see $10 of that $50 as profit before taxes.  Does this tell you why if your lucky you may see him for 5 mins.?  He has to see as many patients in a day as possible to make a living.

I hope you now understand why I say we have a Health Care Delivery System and not Health Care today.  In my next post I will explain how we got to this point.  So please Subscribe via email to my blog so you will get all of my post as I explain more.

New Article by: Dennis Rowley

The Health Care Delivery System Admits To The Poisoning Of Millions Of Americans

If anyone reading this still believes that the health care delivery system is a good thing, consider the fact that the drug companies – a charter member of the health care delivery system – makes money from illness, not from getting you well. There is no money – AND I MEAN ZERO CASH – to be made in the current health care delivery system from curing Americans. Cures are nonexistent. In fact, a medical professional who uses the word “cure” in referring to a patient's disease or disorder can be fined, lose their license, or even be imprisoned for doing so.

Why? The reason is simple. There is far too much money to be made from “treatment.”
The AMA – the self-ordained health care watchdog - makes money every time you go to the doctor or pharmacy.

The health insurance companies do the same.

And the drug companies make buckets of money by keeping Americans sick. If it were not true, then there would be no need to hide behind the FDA and to penalize supplement companies for using nutritional therapies. Nutritional therapies, as a rule, carry no side effects. On the other hand, the average prescription has at least 70 published side effects. That is a verifiable fact! The health care delivery system has agreed to publish the poisonous facts and hand it out with every bottle of pills they push on you. Yet no one seems to notice! Or care!

The health care delivery system is corrupt. The financial incentives to get and keep people healthy don't exist. The health insurance companies, the drug companies, the tort attorneys, the AMA and the government all bill and collect hundreds of billions – trillions – from illness.

If there was a true financial incentive to keep people healthy that would be big business.
But cure is not big business not - treatments are - $2.3 trillion big!

Trusting the health care delivery system with your health is a lot like trusting Michael Vick to sit your dog.

If you agree and want a better way that will save you money and keep you healthier, go to www.CareLiberty.com and sign up get all of your health care and ObamaCare questions answered. 

Reposted by: JE Health Care Solutions A solution that gives you control of your Health Care.