Summary of Chapter 10 Case * Frontline PR is a public relations firm with 150 full time employees, consists mainly of their staff plus some administrative and operations people. Frontline is currently struggling with the cost of health care insurance * Currently offers their employees fee-for-standard, 300 deductibles, 20 percent co insurance, FSA Flexible spending account * After attending and speaking with several experts at the national conference on compensation on Health Savings Account, she thinks an HSA will be a viable option for Frontline. * She believes that making such change from standard fee-for-service plan to HSA with high- deductible insurance plan could result in significant cost savings for the company.
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Another helpful step is by putting their health plans out to bid. According to a study from an article from shrm.org “ A great deal of focus has been placed on waste in today’s health care system; however, increased financial responsibility can be exercised along the entire health care supply chain to halt rising health insurance costs. One of the most rapid and efficient ways to achieve this is to take key health insurance policies out for competitive bid” They further agreed that by doing so, companies are able to save 16-18 percent of health care insurance plans.
First as Shrm.org suggests How does a high-deductible insurance plan work?
As its name implies, it's a health insurance plan that has a high deductible (the amount of medical expenses you must pay annually before coverage kicks in). The premiums (the regular fee you pay to obtain coverage) for a high-deductible insurance plan are typically lower than premiums for traditional insurance plans.
However, a high-deductible plan doesn't start paying until after you've spent a thousand dollars or more of your own money on health care expenses. (This unpaid portion of expenses is known as a deductible.) You can use your HSA to pay deductible expenses, copays,