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