Where your employees get their healthcare care impacts your income.
Let’s talk about something that deserves proactive attention: your practice’s health insurance renewal. It’s an area where your leadership could make a difference.
Your health insurance premiums increase annually. The following example shows how compounding works against you. At the end of five years, an employer with fifty employees who keeps their renewals at 6.5% rather than 14.5% saves $395,055 over five years. Compounding works for you in the stock market but against you in the health insurance market.
Here is my basic premise: where your employees get their healthcare care impacts YOUR income. Where you get your healthcare impacts THEIR income. This truth is neither understood nor appreciated by many, so let's go there.
Some of the worst times during my career were when I knew the insurance renewal increase was going to be greater than the annual raises I was giving my folks. My employees' income would go down despite the raise. It was before I really grasped that I had the power to bend the curve by spending my healthcare dollars more wisely and by educating and encouraging my co-workers to do the same. I know better now.
You, as a leader, can bend this cost curve.Be open with your staff.Help them understand these dynamics – the practice’s fiscal health and their fiscal health are intertwined.Share your personal efforts to choose your healthcare wisely.Finally, repeat this message several times during the year. The last point is critical, as ongoing vigilance is needed to create good healthcare spending habits.
Lucien W. Roberts, III, MHA, FACMPE is a semi-retired practice administrator and long-time writer for Physicians Practice and Medical Economics. In his semi-retired kind of life, he is fortunate to be part of an infusion center with a simple measure of success: one happy patient at a time.