May 3, 2022
Harvard Business Review recently published insight featuring Keith Ericson, Associate Professor in Markets, Public Policy, and Law, discussing how employers can save money on insurance plans by following 3 simple steps.
As a first step, Keith recommends comparing full insurance plan costs instead of just premium and administrative fees. By determining the prices based on hospitals where your employees visit, you can get a more accurate picture of how much you will have to pay.
Keith also advises employers to pay attention to each plan’s network. Because most insurers offer different plans with negotiated procedure prices varying throughout, he stresses the importance of finding the one most pertinent to your company. Lastly, Keith recommended employers consider a fully insured plan since they can often be cheaper, and the insurers are the ones dealing with the risk. As he puts it, “Analyzing these hidden health procedure prices can take work but save employers money and provide a better deal for their employees.”