Comparing Cost Control Strategies

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Comparing Cost Control Strategies

There are many different cost control strategies that employer-sponsored plans can implement. The first one is that employers can offer a number of products of services to their employees. One service that employer can do is buy options, called riders, so that they can augment their health plan coverage. These can be used for different coverage’s like dental and vision care. They can also be used for complementary healthcare such as acupuncture, massage, and some dietetic counseling. These enrollments are usually held annually. They call this enrollment “open enrollment.” Sometimes these enrollments occur after a waiting period that the employer specifies. This is just for new hires, so that they can have the insurance coverage when they have waited their probation period time. During the enrollment, employees decide on which plan or benefits they would like for the next year. There are different level of premiums and deductibles that are available. There is adequate coverage in both plans, but usually the self-funded plans have the higher risks that come with them. These types of plans have no third party administrators involved. In self-funded health plans, there are many cost control strategies put in place to help the company save money. With self-funded health plans, the employees do not have the ability to purchase riders. The do not have an open enrollment and they use third party administrators to handle parts of the insurance’s management. For example, third party administrators collect the premiums and they enroll through a waiting period. Both of these types of plans are not portable. They can not be transferred for one job to the next. When the employee changes employers they lose the insurance coverage for a number of days. There are other insurance coverage’s available for the individual when these changes occur. Both of the insurance plans have provider networks available to the individual. These provider...
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