Controlling health plan costs shouldn’t be a luxury reserved for the largest companies in America.
It’s been argued that neither self-insured nor fully-insured companies do a better job of controlling healthcare costs. That’s accurate when the self-insured company continues to purchase the same contracts, meager discounts and broken model sold by legacy providers.
Here’s why: Both companies are buying the same insurance. The only difference is the funding mechanism on the back end. Of course they aren’t seeing a difference.
Self-insured employers have to change how they purchase their company’s health plan in the first place. Only then will they realize the greater savings and cost control that’s seemingly been out of reach, reserved exclusively for the largest employers in America. That accessibility shouldn’t be limited to the top few. All companies should have access to this proven model.
Apostrophe’s Intelligent Health Benefits were informed by the direct purchase model optimized by major corporate players (think Lowe’s, Boeing and Walmart) and designed to be accessible by mid-size, self-insured employers. By working outside of the fundamentally broken system that props up traditional insurance carriers, we’re able to provide employers and their employees with better benefits for less money and never sacrifice quality of care or experience.
Each year, employers of every size are faced with average rate increases of 12%, increases that come despite cutting corners on providers and coverage. Self-insured employers aren’t immune to increases, but at an average 4-6% per year, it’s substantially less than the standard market rate.
“Until employers engage in a different way, we are stuck,” warned Ethan Merk, Vice President of Sales for Apostrophe (and a former broker himself). He says we’re out of road and out of options. “We’re at a tipping point. Businesses are at risk because they don’t treat health benefits as a major spend or a top-three line item even though that’s exactly what it is. Until they do, they’re in trouble.”
The market has been trained to keep buying a lack of transparency and unknown rates. It’s hard to see a better way when the status quo is all that’s presented during renewals. At Apostrophe, we’re telling benefits brokers and self-insured employers that it no longer has to be this way. They no longer have to accept these broken plans at face value. They have options.
Apostrophe’s Intelligent Health Benefits are driven by simplicity, transparency and love. Can you name one insurance company that can offer any one of those, much less all? We work cooperatively with providers and employers alike, not combatively. And the discounts we receive are passed directly to our members saving them thousands every year.
The contracted rate employers are forced to accept each year during plan renewals is not the best case scenario. In our world, it’s a low bar for doing no worse. As a self-insured employer, your rates can, and should, be a lot better than you’re paying now.
If you’re not saving any more than you were under a fully-funded health insurance company, it’s time to change everything.