By: Keith Lemer, President, Wellnet and CNBC-YPO Chief Executive Network member
How do you manage what’s typically the second- or third-most costly line item expense for smaller businesses today—if you can’t measure those items?
Smaller employers’ inability to obtain useful, readily available data has allowed premiums to go uncontested far too long. Premiums have risen 131 percent during the past 10 years. In contrast, wages have grown 38 percent, and inflation is up 28 percent, according to the Kaiser Family Foundation.
What’s surprising is that most health insurance brokers have not suggested self-funding to clients as a way to gain transparency. This simple solution can help smaller businesses better manage medical costs.
Benefits include identifying overcharging and less expensive treatments that can help lower total medical benefit costs. Bottom line: It places smaller businesses in the driver’s seat.