The world of employee benefits is a world with lots of data and very little information. You probably get a whole bunch of reports every quarter or, if you’re lucky, even every month. Unfortunately, my experience (coupled with my 3-year old’s reaction in the picture above) tells me those reports are generally more painful than helpful.
How many of those reports make it even remotely clear what you should be doing next? How many of them tell you what you need to do? Or how much you could save? Or even better, how you could lower your cost and IMPROVE your employee benefits?
Do any of them make you and your benefits team look like rock-stars every time you get them? They should because your are doing all the heavy lifting and deserve the credit for each and every success (SIDE NOTE: I am also working on a HR Rock-Star showcase for LinkedIn so shoot me a note if you fall into this category).
Why don’t we just trash that last round of reports you got and do these 3 simple things so you can start saving right away by improving your benefits (WARNING: all 3 of these actionable ideas may dramatically lower your costs and make your employees love you!):
1) DIRECT CONTRACT FOR ADVANCED IMAGING: This the easiest thing you could do because things like MRIs and CTs happen a lot and you are overpaying most of the time. When you look at the actual data, the findings are more painful than even reading those old reports.
An analysis of over 500 CT scans of the abdomen and pelvis showed the average payment was $1,569 (after the discount). You should only be paying around $350. That is savings of 78% on average. Cost at the 90th percentile? How about $3,457 so you may be overpaying as much as $3,000 per scan.
An analysis of over 450 MRI scans of the brain showed the average payment was $1,963. You should only be paying around $650. Savings of 67% on average. Cost at the 90th percentile? A whopping $3,455.
One small school district actually overpaid $310,426 in just one year on just those 2 scans alone. I am sure it wouldn’t have hurt to have had an extra $300K laying around right about the time their state legislature was preparing the next round of cuts to the education budget…
The total cost of overpaying for advanced imaging in that same school district? $907,818. That is nearly $1M that could be saved by focusing on advanced imaging, getting the right contracts in place and making it FREE for your employees when they need an MRI or CT scan and go to one of your preferred vendors.