​For many, the end of the year is a time to slow down, relax and reflect on the year behind us while setting resolutions for the year ahead. At Allied National, our employees are busy paying claims, providing agent support, closing new business and booking renewals. But we still have time to look back at what we accomplished in 2021 and share with our readers what’s ahead for Allied National in 2022. And be sure to take our quick survey at the end for a chance to win an Amazon gift card! 

Reference-based pricing (RBP) is touted as the economical alternative to Preferred Provider Organization (PPO) pricing and statistics bolster that claim.

RBP is a reimbursement methodology primarily used by self-funded employers. Instead of carriers negotiating a fee directly with a provider (usually through a PPO network), employers reimburse providers and facilities according to a reference point – such as a percentage above of Medicare rates. For instance, Allied National’s self-insured Funding Advantage Freedom Plans reimburse physicians at 125% of Medicare and facilities at 150%.

The question many people have is whether RBP really can save employers and employees a significant amount of money on group health plan premiums and member out-of-pocket costs.

The answer?

Article reposted with permission from BenefitsPro. Written by Kelly Smith, Senior Vice President at MVP Health Care.

​Brokers are experiencing an increase in demand for level-funded plans, which are an exciting offering providing predictability, funding diversity and innovation to their portfolio.

Although Preferred Provider Organizations (PPOs) have been a popular group health benefit plan feature since their introduction in the 1980s, their shine is starting to fade.
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PPOs are supposed to be a great way to lower health care costs. Providers agree to a discounted rate in exchange for insurers steering members to their services. The problem is that retail prices charged by hospitals and physicians continue to rise steeply. 

Ned Schaut, President at Agency Leverage, and host of Benefits Influencer - a podcast highlighting thought leaders in the Employee Benefits industry – recently interviewed Allied National Executive Vice President Gary Ashley. 

Mental health is an incredibly broad subject. When you hear someone talking about mental health, what do you think? It is not just about people who have multiple personalities or severe alcohol or drug additions.

The United States’ high-priced health care system, which includes health care and insurance, affects everyone, sick or well. It has reduced individual spending power for several decades. Salaries for American workers have risen, but net pay has stayed the same because of increasing charges for health insurance.
 
So, what exactly makes the health care system in the U.S. so expensive? It depends on who you are asking.

The Affordable Care Act (ACA) has had a profound impact on small group health insurance. Rates have increased significantly as a result of the ACA. These rate increases have been particularly difficult for small groups.

This is where a level-funded health plan could be a good fit for your small business.

It’s that time of year again for many employers. Health insurance renewals may feel like a pain; however, they may be one of the most important decisions you make each year.
 
Your renewal is the time to start a conversation with your agent or broker about whether your current plan is working well for you and what type of renewal options may be available for your small business.

The answer to this question is a resounding “Yes!”
 
Let me start by saying the Affordable Care Act (ACA) was set up as an option to help more people afford, and have access to, health insurance. Though it did increase the number of insured people in the early days of the ACA, small business owners found it increasingly difficult to find anything affordable about the plan. ACA rate increases have made coverage unaffordable for many small employers. Insurance companies responded to this by creating options for small business owners outside of the ACA that still are qualified health plans.
 
A “new” plan that arrived on the scene soon after the advent of the ACA is really not new at all. It’s been around for some time now. The new option available to small business owners is called “level funding” and can save small businesses significant money while still providing an excellent health plan for employees.