Health Savings Accounts
The money you are currently spending on health care can be redirected to make your employees healthier and wealthier. Health insurance represents a significant portion of your compensation package, but virtually none of the it goes to your employees. Instead, it is directed to medical providers and the insurers. Would it not be a better arrangement if, for the same money, you could allow your employees to keep a significant portion of your existing premium dollars? After all, your goal is to compensate your employees competitively – not the pharmaceutical companies.
Consumer direct plans like Health Savings Accounts are designed to do just this; make your employees wealthier. Studies have shown that it does not harm your employees, but makes them better stewards of their own health. Engaged employees are happier, better employees, and if logic follows, more productive employees. You get a better return on the money you spend on benefits.
The money your company spends on health insurance for employees should be working as an asset, not managed as a liability. However, many employers look at their health plan as a necessary evil. What other form of compensation that you give your employees could potentially gain you so much utility for your organization? A properly designed health plan can have far greater influence over your employees. It can become a compensation method that reaches beyond the employee, to their family members. Proper design could improve health and well-being for all.
The didactic nature of the traditional health insurance plan working with our existing health care system allows little room for the patient to be the good steward of their own health. Your current insurer tells you and the physician to “do this” or “do that”. Our health care system aggressively directs us to take more drugs, more medicine, pursue more medical intervention, and trains us to follow its protocol of administration.
For the same money, wouldn’t wealthier and healthier employees be a better arrangement than the existing one? And, it would give your employees more ability to direct their own health care decisions. You probably haven’t thought about your health insurance plan making your employees wealthier, but you’re likely to have considered the prospects of them being healthier. As a society we have not become healthier or wealthier. Your existing insurance plan gives the medical providers in your community and on a large scale hospitals and pharmaceuticals direct access to your company’s financial status. Think of it, every physician has almost unrestricted access to your company’s financials through your employees and each family member’s medical ID card.
Your traditional prepaid medical plan has well evolved past the concept of insurance. Once a financial instrument of protect, now health insurance represents merely the advance purchases of an untold amount of health care. Take charge again, and reconsider how you are financing your health plan.