Traditional insurance has been the way for as long as anyone can remember and, in large part, has provided a valuable resource.
Insurance is a different type of service than most traditional business models. For example, when you go to a car dealership, you don’t just say give me a car, you have something customized to your needs. Those options are out there in healthcare, but as consumers, we haven’t been conditioned or given permission to ask for customization.
As a result, very few people say, “I’m happy with my insurance.” For most customers, their insurance is just “there.”
By searching out customization and using things outside of “traditional insurance solutions,” businesses can shortcut how their insurance is priced, so if you’re using less, you’re paying less, while still receiving the same quality of care from providers, and having more control over what that experience looks like.
Large companies have been customizing their insurance for years because they can hire dedicated staff; even big companies who do this innovative process still craft their insurance around the traditional model.
Three Ways To Get Think Differently About Your Businesses’ Insurance and come out ahead:
- Go directly to hospital systems because their margin is higher. By working directly with physicians, companies can negotiate direct primary care and help create a customized product.
- Consider hiring an expert to save time and money. It can be daunting to companies who aren’t staffed or don’t have the expertise or capacity to seek out creative insurance solutions, so often, it’s easier to play it safe and go traditional. Hiring a risk consultant, for example, can help streamline the process.
- Try a captive. A captive will spell out what you’re missing from insurance and build a customized plan around that, including network arrangements that can cut costs for the exact standard of care businesses are used to or better.
The truth is, the information isn’t out there to help small and midsize businesses win the insurance game. Still, you don’t have to be a profit center of 500K to create these relationships: with the hospital systems, with a risk management consultant, or with a captive. Businesses can still get the set it and forget it options that they’re used to, but have it customized to the specific needs of their existing staff.
From a cost perspective, all three can help you be more efficient with your spend. Ultimately, the goal is to pay for what you use while getting the best and most innovative programs at your fingertips.