Today we stand at what I see as a crossroads in Medical Benefit history.
We are just a few hundred years from when major medical insurance was introduced to now, when the benefit is seen more as a right versus the privilege that these benefits started out as.
In days of old, the company paid 100% of the medical benefit.
The coverage was catastrophic in design with most of the day to day doctor visits and medication being paid by the subscribers.
Over the years, there has been a shift of the expenses from the employer to the employee.
Most of this was so the employer could manage the rising costs over the years.
Now we move clients to higher and higher deductible plans in a hope to bring the rate increases lower.
Maybe we reduce the benefit in area A to make room for the increase in premium in area B.
It is a vicious cycle that forces the employer to reduce the benefit level to the employee just to stay above water.
The real issue is 3-5 years down the road when employers have moved to the highest deductible plans and there is no where to go.
What is going to happen then? The real possibility is the employers are now going to be held hostage and will have to take the beating of the double digit increase.
One solution may be wellness programs instituted now to hedge against the increases of tomorrow.
If the employer get help his employees become healthier, this will reduce the claims experience over time and should move the rate increases to single digit.
This may be a solution that all employers need to bring to the workplace.