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Addressing Rising Healthcare Costs with Alternative Health Plans


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Healthcare costs continue to rise, placing significant financial strain on both employers and employees. The 2023 KFF Annual Health Care Affordability Report highlights this ongoing issue, showing that the average family premium has increased by 22% over the last five years​ (KFF)​​​. As traditional health plans become more expensive, employers are seeking cost-effective alternatives to provide their employees with necessary health coverage without breaking the bank. The Fundamental Care® Limited Day Health Plan offers a viable solution to this problem.


The Challenge of Rising Healthcare Costs


Several factors contribute to the rising costs of healthcare, impacting both employers and employees:


  • Increasing Premiums and Deductibles: According to the KFF report, the average annual premiums for family coverage have surged, and high deductibles are becoming more common​ (KFF)​.

  • Prescription Drug Costs: The rising costs of prescription medications are a significant driver of overall healthcare expenses. Employees often face higher out-of-pocket costs for their medications, making healthcare less affordable​​.

  • Chronic Disease Management: The management of chronic diseases, which requires ongoing care and medication, also adds to the financial burden. The KFF report notes that chronic conditions are a major contributor to increased healthcare spending​​.


How the Fundamental Care® Limited Day Health Plan Mitigates Costs


The Fundamental Care® Limited Day Health Plan is designed to provide near comprehensive health coverage at a lower cost, addressing the key challenges of rising healthcare expenses:


  1. Lower Premiums: The plan offers significantly lower premiums compared to traditional high-deductible health plans (HDHPs) and BUCA plans (Blue Cross/Blue Shield, UnitedHealthcare, Cigna, Aetna). This makes it more affordable for both employers and employees.

  2. No Deductibles: Unlike many HDHPs, the Limited Day Health Plan features No Deductibles, which helps to reduce out-of-pocket expenses for employees. This makes healthcare more accessible and less financially burdensome.

  3. Valuable Coverage: Despite its affordability, the plan includes a wide range of essential health benefits such as preventive care, mental health services, and primary care visits. This ensures that employees receive necessary care without the high costs associated with traditional plans.

  4. Prescription Drug Card: The plan includes plan options for prescription medications, helping to mitigate the high costs of drugs and making it easier for employees to manage their health conditions without incurring excessive expenses.


Additional Resources for Cost Management


In addition to the Fundamental Care® Limited Day Health Plan, brokers can utilize various resources to help employers manage healthcare costs effectively:


  • Price Waterhouse Cooper (PwC): PwC’s Health Research Institute offers insights and reports on healthcare trends and cost management strategies that can be valuable for brokers and employers​ (KFF)​.

  • Willis Towers Watson: This firm provides comprehensive reports and tools for managing healthcare costs and benefits, helping employers optimize their health plans .

  • Mercer: Mercer’s reports on healthcare cost trends and strategies offer actionable insights for employers looking to control expenses while providing valuable health benefits .


How Brokers Can Assist Employers


Brokers play a crucial role in helping employers navigate the complexities of healthcare costs and find affordable solutions. Here’s how brokers can leverage the Fundamental Care® Limited Day Health Plan:


  • Educate Employers: Provide clients with information on the benefits of the Limited Day Health Plan and how it can address rising healthcare costs. Use data from the KFF report to highlight the financial advantages​ (KFF)​​ (KFF)​.

  • Customize Solutions: Work with employers to tailor the plan to their specific needs and budget. Emphasize the flexibility and coverage of the plan.

  • Offer Comparative Analysis: Compare the costs and benefits of the Limited Day Health Plan with traditional HDHPs and BUCA plans, showing how it offers a more cost-effective alternative.


Conclusion


Rising healthcare costs are a significant challenge for employers and employees alike. The Fundamental Care® Limited Day Health Plan offers a cost-effective solution that provides near comprehensive coverage without the high premiums and deductibles associated with traditional plans. As a broker, you can help your clients navigate these challenges by offering tailored solutions that address their financial constraints while ensuring that employees receive the health benefits they need.


To learn more about how the Fundamental Care® Limited Day Health Plan can help manage healthcare costs, visit Fundamental Care® Limited Day Health Plan.


About Fundamental Care®


Fundamental Care® offers Affordability-Based Medical Plans designed to meet the unique needs of various niche markets, including small businesses and their employees, part-time and hourly workers at enterprise-level companies, independent contractors, gig-economy workers, and association members. Our mission is to provide access to unique and affordable health insurance benefits on a guaranteed issue basis. Learn more about Fundamental Care® and how we can help your clients navigate the challenging healthcare landscape.


About Coterie Advisory Group, Inc.


Fundamental Care® is managed by Coterie Advisory Group, Inc., an insurance program manager and national marketing agency. Our founders are a team of insurance and benefits professionals with extensive experience in the benefits marketplace. They have held leadership and executive roles at multiple insurance carriers, agencies, and platform administrators. Our drive has helped thousands of service-industry employers and millions of individuals obtain quality, affordable care. Coterie focuses on Affordability-Based Medical Plans and holds life and health insurance licenses in all 50 states.

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