I have a question for you. What is the most basic principle of insurance? Overinsurance. Some pay more than what they use so others can pay less. But what happens when “more” becomes too much, too often? What happens when an employer gets tired of continually subsidizing an insurance pool it consistently outperforms? What is a chronically overinsured employer to do? Continue reading Captives: Cutting Chronic Costs Through Cohesion
Before I began my career in the insurance industry, I only ever heard of underwriting in terms of applying for a mortgage. It seemed to be that black hole, where weird things happened with rates and percentages and suddenly what you expected to pay, was much different. In the employer insurance group marketplace, it can appear to be the same. Although a lot goes into underwriting, these are few of the basic principles: Continue reading The Mechanics of Underwriting
The last time you watched TV, how many times did you see a commercial from a pharmaceutical company? Perhaps you’ve seen an advertisement for Humira, Harvoni , Tecfidera or one of the many other specialty medications. You know what I’m talking about – the commercials that seem to air so often that you are able to memorize the script, along with the laundry list of side effects, like your favorite song on the radio. What consumers rarely think about is the impact that these advertised specialty medications can have on a company’s budget and employee benefit plan offerings. And believe me – the effects are huge. Continue reading Could the “Patent Cliff” Result in a Company’s Inability to Overcome a Financial Mountain?
How is it that we make purchases on Amazon.com with a touch on a smartphone, yet many of us still buy group health insurance with paper and a pen? The discrepancy between the two different experiences is confounding. Yes, I would like to clarify that there are fundamental differences between buying Cards Against Humanity on Amazon.com and choosing the right health plan for you and your dependents. However, the marketplace tells us that those two different experiences will be converging. Employers are adopting technologies to more efficiently and accurately manage their benefits and human resource processes and employees are demanding that they do so. Continue reading Online Consumerism and Private Healthcare Exchanges