Budgie Health reposted this
❓ Are you an employer that offers a health plan option that no employee should choose? 🗽 Most employers in the US offer their employees a choice of two or more health plans. The concept seems great. Americans love choice. Don’t force someone to pay for a rich PPO plan when they want a narrow network and an HSA..and vice versa! 🤼♂️ However, one of the more interesting phenomena we see at Budgie Health is what are called ‘dominated’ health plan options. These are plans that are objectively worse financially for employees. That’s probably not the kind of ‘choice’ you’re looking to offer. 📊 See the chart at the bottom. This is a de-identified analysis of an employer that offered two health plan options. We ran their employee claims history and plan designs through our analytics engine to identify how much each employee would have spent in total on healthcare last year on each plan (factoring in premiums, out-of-pocket costs, network utilization, and any employer HSA/FSA contributions). What we found was striking. If you were an employee getting coverage just for yourself, you would ALWAYS be financially better off on Medical Plan A, regardless of how much care you utilized. It wasn’t even close. Now, what percent of employees do you think were on the ‘dominated’ plan? (I.e. the one that could never be in their interest) Drum-roll……50%❗ We estimate US employees lose about $60 billion per year on these choices….and it’s heavily indexed towards older workers, low earners, and women. Those feel like groups we should care about. Do you offer a dominated health plan option to your employees? Are your employees getting the most benefit from your plans? If you’re not sure, reach out and we can help you find out. #benefitoptimization #employeebenefits #healthcareinteroperability