Cost effective Insurance???
In an effort to curtail rising healthcare costs insurance companies both federal and private are instituting new regulations for reimbursement. Politicians are getting on their proverbial soap boxes and announcing their grand schemes to reform healthcare. Now companies are changing their insurance plans for their employees to offer a more cost effective way of providing benefits. They are dropping their group coverage and letting their employees get their own individual policies.
USA Today provides details of one such employer Nick Trikolas who plans to drop his group health benefits, and in return he is going to pay his employees extra money to obtain their own insurance.
“This may be the future of health insurance,” says Trikolas, CEO of Ilios Partners in Chicago, which plans to switch its 100 employees from group to individual coverage this year.
Ending group insurance for employees is looked at as a low cost alternative for employers. Companies like Ilios will end up diverting money anywhere from $50 to $200 a month into tax-free health spending accounts that their employees can tap into for healthcare needs.
Some critics are comparing this new move to a Wild West approach that would benefit young healthy employees, but those that are older and not as healthy could find themselves without adequate medical coverage. Individuals can be turned down for insurance coverage for a number of reasons where group plans have to take everyone who works for the company, regardless of health (in some states).
Once in the individual insurance market there are many variables that can pose to be challenges to obtaining medical coverage. Premiums tend to be based on age, health history, and other factors for individuals. Proponents liked Paul Zane Pilzer, whose Zane Benefits firm provides services that help people make the switch from group to individual coverage states that for most it works out well.
Healthcare costs are a serious issue for all. Companies are making choices about what they can do and can’t do. If it means going out of business to provide group health insurance as some say what do you think the choice will be? Lots of repercussions for people, this should make you take a moment for pause. Like the commercial says, “What’s in your wallet?
About the Author
Mike Pringle is the creator of Mike’s ViewPoint, where he provides his perspective on various Healthcare issues. He currently works at Falmouth Hospital and has over 20 years of Nursing experience. Mike has a Bachelor’s Degree in Nursing, a Masters Degree in Public Administration with a healthcare emphasis and specializes in both Emergency and Critical Care Nursing. Mike’s experience includes being the Executive Officer (2nd in Command) Combat Military Medical Facility as well as being a Nursing Supervisor at his current position.
