CheckPoint Comparing Cost Control Strategies

CheckPoint Comparing Cost Control Strategies - In...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Comparing Cost Control Strategies There are a few cost control strategies that employer-sponsored plans can implement. To begin, the employers can offer just a certain number of products or services to their employees. Employees can buy options, called riders, to augment their health plan coverage. This is used for things like dental and vision care, or complementary healthcare such as acupuncture, massage, and dietetic counseling. Usually enrollment for employer-sponsored plans takes place annually. The enrollment is called “open enrollment.” It may also take place after a waiting period that the employer has specified; this is usually the case for new employees who join the company at any time other than open enrollment. During enrollment, employees select the set or plan of benefits for the next year. This type of plan has no third-party administrators. Different levels of premiums and deductibles are available from which to choose. Adequate coverage is available in both plans, but the self-funded plans generally have higher risks.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: In self-funded health plans, cost control strategies are created to save money. Employees do not have the ability to purchase riders under self-funded plans. Open enrollment does not take place, though a waiting period for enrollment does exist. Often, third party administrators will handle parts of the insurances management, like collecting premiums from people covered. Both types of plans are not portable from one job to the next. If an individual changes employers, insurance is lost after a certain number of days. However, other coverage options are available in cases such as these. In both plans, there are provider networks of HMO, PPO, and POS. Employer-sponsored plans sometimes allow the employee to choose his or her provider network, but this freedom can affect the plans cost. In self-funded plans, the cost depends upon the decisions the employer has made in purchasing the health plan....
View Full Document

This note was uploaded on 01/22/2012 for the course HCR 230 taught by Professor Volk during the Spring '11 term at University of Phoenix.

Ask a homework question - tutors are online