SHARING vs. IMPACTING
Sharing the cost of a health plan with employees by increasing employee premium contribution and/or deductible is not an effective nor sustainable way for an employer to manage health plan spend. The only way to control health plan spend is by impacting the cost drivers. If fully insured, the employer should ensure the lowest margin of profit for the insurer is negotiated. The self-funded employer has multiple ways to impact their plan spend because all costs are revealed. Knowledge is power.