Why High Deductible Health Plans with Employer and Employee HSA Funding Can Drive Change in Employee Behavior.
Why High Deductible Health plans with employer and employee HSA funding can drive change in employee behavior and why it is our (brokers/advisors) responsibility to education, position, recommend and implement these types of plans with our employer clients.
December 2003 was a great day for health plans in America. This was the date that High Deductible Health plans and the underlying Health Savings Accounts were enacted into law by the federal government.
With this law we were provided the ability to engage employees more directly in the cost of their care with the elimination of copays and RX cards under these plans.
What many brokers don’t realize is that the law allows anyone to fund the underlying Health Savings Accounts. This means that employers (can and should) be shown how to use the savings in premiums created by moving to these types of plans to “fund” employee’s Health Savings Accounts. This can result in a “win/win” for all.
When employers fund the employee’s HSA they provide the employee the ability to direct additional money into a Flex spending type of plan (HSA) that has much higher limits for funding, and allows the same expenses to be reimbursed along with long term care premiums, Cobra premiums and Medicare B expenses. These accounts don’t have the “use it lose it” risk that Flex medical reimbursement plans have always included.
Now what we need is transparency data from the hospitals and providers. It is my belief that if every American was required to have a High Deductible Health Plan paired with a Health Savings Account only, the demand for transparency data would be palpable and the pressure forced on providers and hospitals to comply would amplify.
Right now the transparency data is not available and this needs to change. If the only plan employers could offer were HDHP plans with HSA accounts and if employers provided funding to help their employees be able to afford the additional exposure shifted to them, the demand for transparency data would suddenly become top priority and the government would demand it of providers.
Yes they are more complicated to understand and yes the programs require more employee education and hand holding…..Nothing good happens when we sit on the sidelines…Let’s commit to become part of the solution!
We all know that health insurance is expensive because healthcare is expensive.
Direct Primary Care may be an answer our society should explore.
It is a version of concierge medicine but priced for the average American ($65 to $90 month) on average.
Providing a relationship with a Direct Primary Care physician can be a dramatic step any self funded employer can take to impact and bend the healthcare cost curve and improve the healthcare employees receive.
Doctors collect a monthly subscription fee from the patient (or employer) which can be tax deducted or paid from a tax preferred Health Savings Account (preventive care is allowed as an expense). Because the Dr’s are not billing insurance they can prescribe most drugs in their office at a fraction of the cost.
We Americans and Employee Benefit Advisors must come up with workable solutions to the increased cost and decrease in quality we find ourselves in with our American health care system. We cannot let the status quo remain. Our country needs a good healthcare system based on free market principles.
Direct Primary Care is a good start in the right direction because healthcare is expensive.
EB-Advisors announced a partnership with Maxwell Health, pairing their benefits expertise with modern technology. This means unprecedented benefits experiences for the companies they work with and the employees they serve.
EB-Advisors is a full-service employee benefits solutions company. They work closely with small to mid-size businesses to help them develop comprehensive programs, which help them attract quality employees and retain them. Their dedicated staff of experienced insurance professionals, work hard to simplify the complex and change the world of benefits. In the new reality of health care reform, they bring unique and creative solutions to their clients. No other company provides the depth of knowledge and combination of advantages that they offer.
Suzy Johnson, President and Owner at EB-Advisors, says, “Our purpose is to provide expert guidance to our clients to help them attract and retain good employees. Our partnership with Maxwell Health only furthers our value proposition for employers by adding technology to the mix. With our consultative background and Maxwell’s platform, we believe that this is a winning combination for employers in our market!”
Maxwell Health is an employee benefits technology platform and innovative marketplace solution that makes benefits and HR simple for employers and their employees.
With Maxwell, companies working with EB-Advisors get a customized benefits storefront where their employees can enroll in all their benefits, including medical, dental, vision, life, short- and long-term disability, and financial benefits such as HRA/HSA/FSA. Maxwell’s comprehensive HR and benefits administration system supports complex benefit strategies and integrates with leading payroll solutions for streamlined HR processes.
Maxwell’s beautiful shopping interface makes it easy for employees to choose benefits for themselves and their families. After enrollment, employees are able to access their benefits through a mobile app (available on iOS and Android) that includes virtual insurance ID cards, a turnkey wellness program to incentivize healthy actions, and convenient access to support for health and benefits-related questions. EB-Advisors also offers Maxwell’s integration to healthcare concierge service Health Advocate, and telemedicine provider, Teladoc.
“The team at EB-Advisors is a forward thinking group. Suzy and her team have realized their clients’ need for both benefits expertise and benefits administration technology, and have made our solution a core offering for their clients and prospects. We’re very excited about growing this relationship,” says Veer Gidwaney, CEO and Co-Founder of Maxwell Health.
About Maxwell Health
Maxwell Health makes benefits and HR simple for smalltomidsized employers. The platform includes a marketplace that makes buying benefits intuitive for employees, tools that streamline HR processes including benefits administration and payroll, and a mobile app that makes using benefits easy. Our purpose is to help American families achieve health and financial wellbeing by modernizing how employees experience insurance, financial, and wellness benefits. The platform is provided by benefits advisors as well as insurance and retirement companies that license our technology. To learn more about Maxwell Health, please visit www.maxwellhealth.com.
EB-Advisors was created in 2012 when Suzy Johnson bought the assets of a company she previously ran, Strategic Employee Benefit Services of the Carolinas from her partner Jim Worrell in Charlotte NC. We currently have 11 people on the team and growing. Our purpose is to provide expert guidance to our clients so they can attract and retain good employees. Our client verticals include professional groups (lawyers, CPA firms, Physician groups, and consulting), IT firms as well as distributors and contractors who all attach a high value to their benefit programs. Currently, we serve 280 employer groups in and around the Charlotte NC area. We have developed an excellent reputation in Charlotte among businesses and are known for our expertise as well as our partnership with our clients.
Suzy Johnson has been recognized and will be honored Saturday May 20, 2016 as one of the 50 Most Influential Women by the Mecklenburg Times for 2016.
The 50 Most Influential Women event was created to spotlight and recognize the important role women play in the greater Charlotte region, in the economy, and in society. The honorees represent the most influential women in business, government, law, education, and not-for-profit fields.
More information about this honor and event can be found at:
Tax preparer H&R Block took a look at taxpayer filing outcomes and said two-thirds of taxpayers who received a premium subsidy for health insurance had to give some back.