Maximizing Profits by Lowering Health Care Costs in an Obamacare Society

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A Free-Reprint Article Written by: Thayne Carper

Article Title:

Maximizing Profits by Lowering Health Care Costs in an Obamacare Society

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Article Description:

Health care costs are a growing concern amongst small and

large business owners throughout America. The cost of

medicine in the United States is out of control. Because of

the rising health care costs, employers are forced to reduce

bonuses, reduce spending, and sometimes layoff employees,

which increases stress.

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Distribution Date and Time: 2010-07-27 11:30:00

Written By: Thayne Carper

Copyright: 2010

Contact Email: mailto:thayne.carper@...

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Maximizing Profits by Lowering Health Care Costs in an Obamacare Society

Copyright © 2010 Thayne Carper

Thayne Carper

http://www.thaynecarper.com/

Health care costs are a growing concern amongst small and large

business owners throughout America. The cost of medicine in the

United States is out of control, with the average CT Scan or MRI

costing thousands of dollars. Simple and complex treatments,

office visits, and procedures are costing employers millions of

dollars while decreasing the profitability of their

organizations. Because of the rising health care costs, employers

are forced to reduce bonuses, reduce spending, and sometimes

layoff employees, which increases stress.

Employers can manage health care costs in a society that is

preparing for major health care renovation by monitoring the

eligibility of spouses and dependents, investigating and

reporting all claims, switching to different policies,

encouraging spousal health insurance, reducing workers

compensation payouts, and developing a legal team to handle

litigation and settlement issues.

Utilizing competitive business strategies that monitor expenses

closely can control health insurance costs. In 2007 the average

employer paid $12,106 in health care costs, with the employee

picking up $3,281 of the bill. Health care costs continue to

rise, causing employers financial distress.

Conduct Family Eligibility Audits

An employee's family is one of the largest health care expenses

businesses deal with, as children and spouses become ill over the

course of their policy. It is commonplace for businesses to spend

millions on an employee's dependent or spouse. Companies can

reduce the amount of money spent on spouses and dependents by

actively investigating all non-employee claims.

In most policies a dependent is defined as someone under 18 or

who is a full time student below a certain age. The new Obamacare

insurance reform requires employers to pay for dependents under

26; however, many current policies set the age at 23 or 24.

Employers can minimize health care costs by ensuring any person

over 18 is a full time non-exempt student. Employers can

encourage employees to set their dependents up with

school-sponsored insurance, which reduces the employers overall

cost. Additionally, employers can alter the policies to remove

unrestrictive verbiage from the documents, such as policies that

do not require older dependents to be in school. Verification of

a dependent's status can be obtained from leading national

clearinghouses and verification services at a fraction of the

price of their health plan.

There are other health insurance loopholes employers can

leverage, such as retiree benefits for dependents as well as

dental and vision services. Limit the scope of retiree health

plans by removing dependent coverage, only providing medical

services to the employee's spouse. Additionally, consider

modifying vision and dental coverage for dependents by limiting

it to essential and preventative services.

Deductibles and Out of Pocket Expenses

Employers can significantly reduce the amount of money they spend

on an employee's health insurance plan by utilizing plans with

high deductibles, which ensure that their workers are protected

in case of major illness or injury. Additionally, deductibles

place most of the annual expenses on the employee, with the

employer serving as backup in case of life threatening illness,

expensive operations, and other expensive procedures, such as CT

Scans or MRIs.

High deductible plans are ideal for small and large businesses

that want to minimize health care costs and risks associated with

high premium traditional plans. Employees are made aware of their

high deductibles and take a proactive approach to their health,

avoiding expensive hospitalizations for otherwise preventable

diseases, such as diabetes.

When employees are aware of the true cost of health care, their

overall demeanor towards a healthy lifestyle improves. They also

are more appreciative of the services and benefits their current

employer offers.

Minimize Health Care Costs by Splitting or Switching Plans

Encourage employees to utilize their spouse's employer paid

health insurance package if it is available. The strategy can be

marketed as providing them with the maximum coverage, pointing

out how their spouses program is a viable alternative. Educate

employees on the open enrollment procedure, fostering

communication within their family regarding the topic.

Employees can save up to $5,000 by switching to their spouse's

insurance, especially if said employee was on a high deductible

policy. Another option is to encourage employees to split their

dependent's coverage amongst both of the health plans,

minimizing financial risk to your business.

It is illegal to demand that employees switch to their spouse's

plan or remove dependents from their policy. Incentive programs

are unethical but may drive lower health care costs in your

organization. Use this method as a last resort, as some employees

may take action against the company. Insurance commissioners

frown upon the incentive or spousal switching program, thus it is

best to encourage the splitting of spouse and employee coverage.

Start a Healthy Living Program

The fastest and most efficient way to decrease health care costs

is by encouraging your employees and management staff to live a

healthy and preventative lifestyle. Preventative care costs far

less than other medical procedures, which reduces the out of

pocket expenses for both the business and employee. Offer awards

or incentive programs for employees who quit smoking, lose

weight, stop drinking, or take a proactive approach to their

health.

Be careful when publicly honoring the employee in front of their

coworkers, as some may be nervous or reserved, these are

sensitive topics after all. Healthy living programs foster a

wholesome lifestyle, in which the employee receives routine

checkups and works to reduce preventable conditions, such as

obesity and high cholesterol. Healthy lifestyle programs can

target diet, weight loss, smoking, alcoholism, aging, and stress.

Additionally, healthy employees can participate by continuing to

exercise on a routine basis and reducing their stress levels. 

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Thayne Carper spent 4 years of college competing in student

business plan competitions. He's never won a business plan

competition and was dropped from his college's entrepreneurial

program for lacking potential. Today, he is one of the youngest

published experts on the topic of business turnarounds and cost

reduction. Visit his website lower supply costs up to 30% for a

copy of his report " The Definitive Guide to Doubling Your Profits

in less than 6 Months " (http://www.ThayneCarper.com/FreeReport)

and learn how you can easily lower supply and service costs

up to 30% without hiring a consultant. Learn more:

http://www.ThayneCarper.com/