BASE^® Blog

In the past year, health care spending exceeded $2.6 trillion and put a strain on many families and business owners.  Some factors that contribute to this rise in health care costs are the price of providing medical care, wasteful consumer medical spending, and personal health behaviors.  Avoiding the rise in health care costs is impossible, but learning about what you can do to manage these costs can help your family or your business.

According to a Monmouth University poll, one in four Americans report that the cost of health care is the biggest concern they face.  A poll asked consumers how difficult it was to pay for the following items: rent, groceries, health insurance premiums, health care deductibles and out-of-pocket costs, and taxes with health insurance and deductibles and out-of-pocket expenses were ranked second and third.  20% of the poll’s respondents said there has been a time in the past two years that they had to choose between paying for health care and paying for things like rent or mortgages and some forgoing much needed health care because they felt like they couldn’t afford it.  

“The growth of health care costs remains a burden,” said Patrick Murray, director of the Monmouth University Polling Institute.  “…a large number of Americans report that these concerns pervade nearly every aspect of their lives.”

It is now more important than ever for health care consumers to have access to the tools to help manage their employer-provided health care plans and out-of-pocket medical expenses.  As health care consumers, we all have the power to help reduce health care costs.

Where do we start?  It starts with EDUCATION.

We all play many rolls in our life, at work and at home.  As a trusted advisor, educate your clients on the current tax-advantaged benefit plan that could help their business save thousands of dollars a year in tax savings.  As an employer, educate your employees on how to properly use, and get the most out of, the benefit plans in place in the business.  As a health care consumer, educate yourself and your family on making better health care choices.  Check out a few of the ideas listed below to get started:

1.  In the workforce, educate on Health Reimbursement Arrangements (HRAs) and Flexible Spending Account (FSA) in the business.

Consumer-directed health plans (CDHPs) are the lowest overall cost option for your employees.  When paired together, Health Reimbursement Arrangements and Flexible Spending Accounts help those employees pay for all qualified expenses related to health care, which includes medical expenses such as deductibles, copays, and prescription costs.  Together, these plans offer cost-savings for the employer and benefit the employee.  Everyone has a unique health journey so with a variety of benefit options, employees can personalize their benefits selection.

2.  In your daily life, educate the better health care choices.

We, as health care consumers, can take any number of steps to improve our own health and save on medical expenses.  Anything from quitting smoking, losing weight, learning more about the benefits package implemented in our workplace and using it properly, to making other good choices about purchasing medical care, health care costs can be lowered and your overall health care spending could be reduced.

More than rent, taxes, or groceries; people worry about the cost of health care.  When health care consumers are properly educated, they are able to make smarter health care decisions, which can help save them money.  If you know anyone who could benefit from a tax-advantaged savings plan, BASE® is here to help.  BASE® can help educate and customize a benefit plan to meet your business’ needs.  Call 888.386.9680 or visit our website.   

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Businesses of all sizes continue to feel the pressure of the rise in health care costs.  For many, a traditional group health insurance plan may become too expensive to offer their employees.  Health Reimbursement Arrangements are one of the best options in offsetting the rising cost of health care and providing employees with a tax-advantaged benefits plan they deserve.  The employer has complete control over the health benefits budget, and employees are free to make the purchases that fit their health care needs.  More and more businesses are turning to Health Reimbursement Arrangements to keep costs down and in hiring and keeping talented employees.

Integrated with a company’s group health plan, the BASE® Integrated HRA can help combat the rising cost of providing health care.  It is offered alongside an employer-sponsored group health plan (usually a high-deductible plan) as it is a supplement to help employees with their deductible costs, and is a great option for employers who are looking to lower the cost of health insurance premiums and save money while keeping the employee’s coverage the same.  Employers can help their employees by reimbursing their out-of-pocket medical expenses not paid for by the group health plan.  Because of employee utilization of the HRA, the employer can save 10-50%, depending on the plan design.

Randy M. is an insurance agent, and a great example of a Business Partner who has had success using BASE® with many clients.  While not all clients are ready to believe that a third party administrator is able to reduce their health insurance expenses, Randy has introduced them to BASE® to discuss utilization history and higher deductible plan options.  He has found great success in recommending a higher deductible plan in conjunction with a BASE® Integrated HRA, which has saved clients substantial premium dollars.  “BASE® has allowed them to keep an attractive benefit plan while keeping their overall expenses reasonably the same,” said Randy.

Not only do Integrated HRAs contain health care costs for both the employer and employee, it helps keep employees healthier and better educated.  According to a study by Employer Benefit Research Institute (EBRI), participants in both Consumer Driven Health Plans (CDHP) and traditional health insurance plans consistently report participants to have a better health status and on average have a lesser likelihood for smoking habits, obesity, and lack of exercise.  Participants had consistently reported better health status, exhibited better health behavior, and understood the true cost of health care and how to spend their money wisely, than traditional plan enrollees without the CDHP in place.

The Integrated HRA helps to contain premium increases, which has only increased their popularity over the years.  It helps employers and employees save money, stay educated on their health care decisions, and, on average, help to lead healthier lives.  For more information, call BASE® at 1-888-386-9680 or check out our website. 

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