Direct primary care yields corporate profitability
Do you have to spend money to make money? Or, do you have to spend money to save money?
In reality, both statements are truthful and relevant to corporate profitability.
CEOs & CFOs alike have always known these proclamations to be true in order to successfully run their company. Since healthcare expenditures are typically the second line item on a company’s profit and loss report, these truths applicable to any employer’s medical program.
In the world of employer sponsored medical programs, spending corporate dollars on direct primary care can actually lower your medical insurance rates long term.
According to the SHRM article, “Employers Healthcare Cost Growth Plateau,” without benefit design changes, large employers again will see a 6% increase in health plan costs in 2019, the same rate of increase as in 2018, a new study is forecasting. This is consistent with the previous five years, which have seen employers' health-benefit costs increase between 5.5 percent and 7 percent.
Unfortunately for Florida employers, the average health plan increase in 2019 is projected to be between 8-10%.
“In prior years, many employers have already raised the employees’ deductibles to the maximum allowed by the federal law and will be forced to absorb the annual rate increases, said Richard Scarborough, consultant with Renaissance Benefit Advisors."
“Even more unsettling, though, is they have left their employees ‘insurance poor’ which makes the employees less likely to seek care, thus more ill in the process.”
Employers now have to reexamine their budgets year after year and ponder:
“With the Affordable Care Act safe harbor contribution requirements, where do I come up with an additional 8-10%?”
Ultimately, a tough decision regarding budget shifts have to be made … but, does it?
It is possible to enhance a company’s medical plan portfolio by directing their employees access to quality healthcare providers with the CareHere direct primary care model.
The concept is simple: Unaddressed or minor medical conditions can turn into chronic conditions which can lead to a costly ER visit, then potentially an even more expensive inpatient hospitalization then, finally, costly brand name specialty medications = massive health insurance renewal increase.
CareHere’s solution is to address the major cost drivers (diabetes, high blood pressure, cholesterol, etc..) via direct primary care to your employees.
Ben Baker, CEO with CareHere, explained during city of Charleston’s finance committee meeting recently that the Charleston clinic has seen positive results that usually aren’t apparent for several years. “The city of Charleston saved more than $1 million in healthcare costs since switching to a new clinic provider two years ago,” he said.
According to Tod Mazzocco, executive vice presidents with McCoy Federal Credit Union in Orlando, “Our experience with CareHere has been phenomenal. Since we have put our clinic in operation, our team members have loved the benefit which is zero cost to the employee. It's enabled us to lower the cost of healthcare, lower our insurance rates and provide a much better benefit for our team members.”
Learn more about how your business can partner with CareHere.
Renaissance Primary Care, LLC. offers private primary care, lab and prescriptions services to employers in order to maximize savings and enhance the employees’ benefits and overall experience with minimal cost.
Bryn Scarborough has served as vice president of Renaissance Benefit Advisors since 2013. Her scope of consultative services focuses on employer cost containment programs as well as facilitating direct contracts with physicians, imaging centers and hospitals for their clients.