Consumer Driven Health Plans
Consumer Driven Health Plans (CDHPs) are an increasingly important alternative to the current way of providing medical health insurance. Under traditional health care programs, Employers are faced with double-digit annual cost increases with no relief expected in the foreseeable future. Employers cannot absorb the rising costs alone and in turn have begun reducing benefits and raising Employee contributions. WGC specializes in providing Employers with very successful alternatives to control the increasingly high costs of providing healthcare benefits to their Employees.
The effectiveness of consumer-driven plans is to controlling costs which rests on the ability and willingness of Employees to manage their medical care costs. The solution is contingent on raising the awareness of Employees to the actual cost of healthcare. Employers who attempt to cut costs by lengthening probationary periods, raising deductibles or co-pays, or severing benefits altogether are only offering short-term fixes.
The majority of Employees have no perception how much a doctors office visit actually costs. If the co-pay is only $20 the employee will use the service as frequently as he or she sees fit, with the end result of increased utilization and cost of the employer's plan.
By shifting the responsibility and part of the cost of health insurance onto the employee along with benefit plan design changes, such as higher deductibles, results in lower insurance premiums, because as employees become educated, utilization decreases and so does plan costs.
Consumer Driven Plan Options:
Stand Alone Prescription Drug Carve Out Plan
One popular means of reducing group health insurance premiums is to eliminate prescription drug plans, leaving Employees footing the bill for elevated drug costs and financially unable to do so. There are alternatives.
WGC offers several Prescription Drug Carve-Out options for Employers who need to reduce RX benefits. By replacing the current prescription drug plan with a Generic-Only Plan, Employers can save up to 20% on their health insurance premiums. Sometimes using a Stand-Alone Plan is all that is needed to cut costs.
Multiple Options & Custom Design:
- $15 Generic/$50 Preferred Brand Drug Cards
- Generic Only RX Card
- $15/$30/$60 Copay Discount RX Card
- Discount Generic/Brand RX Card
- Many Choices and Designs
Gap Plans / Supplemental Lines
Gap Plans help pay for employees out of pocket expenses for Hospital and Outpatient Services. They fill the "gap" caused by higher deductible or higher coinsurance plans. Gap Plans are an excellent tool for employers who have or are going to implement higher deductibles and coinsurance. The Gap Plan picks up the difference caused by the new plan design and can significantly save the employer money on health plans.
Worksite - Payroll Deducted Policies
Todays workforce is made of a diverse population with each employee having their own individual needs and circumstances. By offering Employee paid Voluntary benefits, Employers allow Employees to purchase coverage in addition to what the Employer may or may not offer based on that Employee's needs. At no cost to the Employer, these Voluntary Payroll deducted policies have a value added benefit for Employees.
Voluntary policies available are Disability, Term Life, Critical Illness, Cancer Protection, Dental Plans, and AD&D policies, Accident Plans, Hospital Indemnity and Gap Plans.
For Example, Employees may wish to purchase life insurance or disability insurance in addition to what the Employer offers to suit their individual needs. Or an Employer may not offer benefits to Employees, and by offering Employee paid voluntary plans Employers allow Employees to get policies not otherwise attainable.