Health insurance premiums are developed by health insurers to spread their overall risk on their book of business and make a profit. In order to spread their risk and grow market share, health insurers load renewal premiums with other employers’ bad experience. An employer spends blindly, never seeing actual plan costs; never seeing actionable data on which to base decisions.
A self-funded health plan enables the employer to see the actual cost drivers: medical and drug claims data. Data is valuable knowledge. Knowledge is power. The power to effectively tailor plan design. The power to prevent unnecessary illness. The power to direct care to providers who have better outcomes and lower prices. The power to develop and measure wellness initiatives based on actual data.
Focus on what really drives cost. Focus on the data.