Don’t Let the Fear of Medical Debt Drive Your Benefits Program

Don’t Let the Fear of Medical Debt Drive Your Benefits Program. Medical debt is a growing concern for many employees across the country, and not only because of rising costs. Financial strain caused by medical debt affects 20 million people in the U.S., according to the Peterson-KFF, Health System Tracker, putting a significant burden on families and affecting workplace productivity.

Recently, NBC released a video segment about a family living in Illinois who had given birth to twin boys. The twins were born prematurely and needed NICU care. The aftermath resulted in staggering medical debt and to make matters worse, the twins were born in December and weren’t discharged from the hospital until January, the family's out-of-pocket cap of $28,500 per year was reset. Leaving the family to meet that cap twice.

Adding to the stress and strain, the family then had to navigate medical bills while caring for newborn twins with two additional children at home. Negotiating costs can be challenging and time-consuming, often with charges coming from multiple departments within the hospital. Negotiations like this can take months, even years.

Choosing what is best for your people.

Cases like this can cause employees to feel worried about their benefits programs and employers may respond by choosing high-premium, low-deductible benefits programs. However, trying to avoid large out-of-pocket expenses in this way isn’t the only option. While a lower deductible can decrease the cost of medical services before insurance kicks in, it won’t necessarily lower overall healthcare costs. High premiums are paid every month, whether the healthcare system is used or not.

The most important thing employers can do is strategize a benefits program that works for their unique workforce. What works for one company, won’t work for another—including high premium, low deductible plans. By working with a trusted consultant, employers can design an affordable benefits plan that their people can get excited about.

Help employees understand their benefits.

Educating employees about their plans and communicating frequently throughout the year is essential. Some points to consider are: 

• Understanding hospital bills. Hospital bills often have codes and descriptions that are confusing or difficult to understand. Having a trusted consultant, who is available to talk—and not an automated service—can help those employees who have questions about complicated medical bills.
• Can employees negotiate with medical suppliers? Medical bills often come from different areas of the hospital and can be negotiated, however, this can be difficult to accomplish on their own. Knowing who to call, what to say and having the time to do it can be challenging for full-time employees.
• Knowing where to receive healthcare. Providing information about in-network doctors, telemedicine options, and urgent care facilities can help employees navigate the healthcare system more efficiently, ensuring they receive appropriate care when they need it.
• Having discussions with doctors. Some employees may not be aware that they can ask their physician for referrals for treatment outside of the doctor’s recommendation.

Many employees may not be aware of the full range of services available to them or where to go for non-emergency care. Having a reliable source to go to for advice and concerns can make a significant difference in both the cost of medical care and the experience they have.

Don’t let your people navigate the healthcare system alone, partner with someone who can help.

The fear of medical debt is a valid concern for many across the country, and there isn’t a one-size-fits-all solution. The best approach is to discover and strategize a solution that aligns with the needs of your people and your company's goals. Talk to a consultant today to discuss the future of your benefits program.