Employers - Lower healthcare expenditures and lessen lost employee work time.

  • The typical employer who offers health insurance pays $600-$700 monthly per employee. This premium is increasing 8-20% yearly depending on the size of your company (1)
  • Many employers are unable to offer health insurance due to these prices. This is the main reason that 15% of Americans have no health insurance.
  • Employers could pay $100-$200 for a HDHP and $230/month to fill their employee's HSA. That would leave $200-$300/month that you could use to cut your costs or give back to the employees and encourage them to find a direct practice physician.
  • At these prices, more employers could offer heatlh insurance.
  • With a direct practice physician your employees will spend less time away from work. Their waiting room times at doctor appointments will be less, appointments can be made after work hours, and some discussions can be handled by phone instead of needing an office visit. Also, physicians in direct practices are able to practice preventive medicine more effectively, resulting in healthier employees that lose less time on the job.
  • Finally, when insurance rates rise, your out of pocket cost will be less because the lower base insurance cost will rise more slowly.

High Deductible Health Plans (HDHP) - Health insurance that typically has a deductible of $2,000 - $3,000. After the deductible is paid, the insurance covers 80-100% of additional costs. There is a maximum yearly out-of-pocket cost you incur.

Health Savings Accounts (HSA) - An interest earning account obtained through a bank that can only be used for healthcare expenses. Deposits are made pre-tax just like an IRA. Most major banks offer them now and funds can be accessed by writing checks or swiping a debit card. The account must be tied to a HDHP.

Why don't we hear more about HDHP/HSA?

Insurance brokers are paid a commission based on your monthly premium. The typical HDHP will cost 1/4 to 1/3 as much as a traditional managed care insurance plan. Consequently, the broker's commission is much less.

Also, some employees perceive HDHP as a net loss in benefit. The truth is that for most, a HDHP/HSA is a net gain in benefit!

Resource:

(1) Kaiser Family Foundation, http://www.kff.org/insurance/upload/7692.pdf, September 2007.