Health Insurance Costs Keep Climbing, But Smart Employers Are Fighting Back
Colton Storla, CPBS, GBDS
Employee Benefits Expert | More HealthCARE, less insurance | Partner, North Risk Partners | Health & Wellness Guru
A 2020 study by the Kaiser Family Foundation revealed that families paid an average of $21,342 for employer-sponsored health insurance, a 4% increase from the previous year. This might not sound alarming until you look at the bigger picture.
The Numbers Don't Lie
Since 2010, average family premiums have jumped 55%, growing twice as fast as wages (27%) and inflation (19%). It's not just premiums - deductibles have skyrocketed too. The average single deductible hit $1,644 in 2020, up from $917 a decade ago, according to KFF's benchmark Employer Health Benefit Survey.
What's happened to carrier stocks during this same period? They've been on a steady climb upward.
The Real Problem
Most employers are stuck in a cycle:
Sign off on annual renewal increases
Raise deductibles
Limit provider networks
Take money from employees' paychecks
Absorb increases (eating into profits)
Usually, it's some combination of all these bad options. The most common "solution" is moving to high-deductible health plans (HDHPs).
The Pain This Creates
When deductibles go up, employees delay care and skip medications. They avoid going to the doctor until absolutely necessary, then rush to urgent care or the ER when problems get serious.
What started as a $50 doctor visit becomes a $5,000 emergency room visit.
Breaking the Cycle
The good news? There's a better way.
With Direct Primary Care (DPC), employees don't think twice about going to the doctor because it's free. But here's where most advisors get it wrong - they keep employers with their Blue Cross/United/Cigna/Aetna plans and just offer DPC as an additional benefit.
Our approach is different. We build health plans that complement DPC, not compete with it.
We ask DPC providers: "Who are your key partners for Orthopedics, ENT, Physical Therapy, and other specialties?" Then we put together their preferred referral patterns. When a health need goes beyond what the DPC can handle, we navigate patients to their preferred facility.
And the employee's cost? Still $0.
Community Connected Health
We achieve this through unbundled self-funded plans.
This approach:
Keeps healthcare dollars in your local community
Gives employees access to care when they need it
Eliminates the financial barriers that lead to delayed care
Reduces your overall healthcare spend
The typical employer is paying more each year for worse coverage. But smart employers are fighting back.
Are you ready to stop accepting defeat and throwing your hands in the air saying "it is what it is"? You can regain control over your health insurance spend by purchasing healthcare differently.
All while improving the financial health of your people, their families, and your community.
Want to learn more?
Join our next Executive Roundtable where we'll dive deeper into how local employers are taking back control of their healthcare costs. Limited to 10 seats - register now.
Breaking Barriers in Healthcare | DPC Advocate & Innovator Operations Manager
4moWhat you are doing is the future of healthcare in the corporate world! Thank you so much for all that you do and for keeping both employers and employees healthy—physically and financially!
Benefit specialist
4moIt's inspiring to see innovative solutions that prioritize both care and cost for employees! 💪