30 Second Insurance Tips©

Tip 23- Small Changes Can Mean Big Savings

Faced with rising premiums, there is an array of health plan design options to consider.
We just delivered a 13% premium increase to a client with 54 employees.
“No can do, Rauser,” he said. “We only have the budget for a ten percent increase, and not a penny more!”
So here’s what we proposed:
‐ Raise the deductible by $500. That saved him 3.5%.
‐ Add $5 to the drug co‐pay. That saved him another 2.6%.
‐ Increase the Emergency Room co‐pay from $100 to $200. That saved him 1.2%.
Altogether he saved $22,030. Now he’s under budget.
And the premium savings to each employee erases a large chunk of their co‐pay increases.
Everyone wins.