Socialized medicine ain't all it's cracked up to be.  These videos will tell you the truth.  Two are about Canada;  three are about the UK.

Brian Lee Crowley, president of the Atlantic Institute for Market Studies, is a leading voice for free-market reforms to Canada's health care system.

Among his many books and other publications, Crowley co-authored two projects on the Canadian health-care system both of which won the Sir Antony Fisher Award. In recognition of his health-care work, he was named to the most influential recent provincial health-care inquiry in Canada, the Alberta Premier's Advisory Council on Health (the Mazankowski Committee).

Crowley is a much sought-after media commentator on health-care policy and has spoken to scores of national and international conferences in recent years on health-care reform in Canada. In March, 2008 his health care policy work was further recognized when he was named Senior Fellow at the Galen Institute, a health policy think tank in Washington, DC.

Crowley is also President of Civitas, which promotes an understanding of the principles of free and ordered society; and is director of the Maine Public Policy Institute.

Health insurance companies divide their insureds into two categories ...

1.  Small Group (1 to 50 lives) ... These groups are community rated.
2.  Large Group (51 and up lives) ... These groups are experienced rated.

While community rated groups are not directly affected by claims, large groups are directly affected by claims.  The "bottom line" is that for all companies to better control their health insurance costs, they've got to find a way to help their employees improve their health.

It is estimated that three of every four healthcare dollars are spent on chronic health conditions, many of which are caused by obesity and smoking .. diabetes .. hypertension .. heart disease .. stroke .. mental disorders.  For the most part, these conditions are both treatable and manageable.  Many of these can be managed with medication adherence.
 

The above chart (we apologize for the small print) bears this out in that the Alternative Path depicts how these conditions respond to proper treatment.  To download the actual report (bigger print), click here.

Since 75% of the healthcare dollar is spent on manageable health conditions, how can employers help employees become healthier? 

Part 2 of 3
Wellness:  The Carrot and The Stick 

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Controlling health insurance costs is not rocket science.  If you want to lower your health insurance costs, just increase your deductible.  If you increase it enough, you could have a qualified High Deductible Health Insurance Plan (HDHP).  

"Qualified" means it meets the federal guidelines to offer Health Savings Accounts (HSAs) wherein employees may set aside money on a tax-free basis to pay for their medical expenses when and if they occur.

The money in the HSA continues to grow tax-free and could be used for post retirement medical expenses which tend to be quite high.  As long as the money is used to pay for qualified medical expenses, now or in the future, no taxes will ever have to be paid.

HSAs for Businesses

Health Savings Accounts (HSAs) have become the fastest-growing product in the health benefits industry for good reasons. High Deductible Health Plans dramatically lower health insurance costs for employers while employee-owned accounts provide control and freedom for routine health expenses.

Here's how to maximize participation and minimize confusion:

Here's a typical group dental insurance plan ...

 Premium = $42 per month = $500 per year
(rate shown is for an individual)
Maximum Annual Benefit = $1,000

Let's say you need an $800 root canal (restorative) ...

You've now paid $500 for the dental insurance, $50 for the deductible, and $150 for the root canal.  That means you've paid out a total of $700 to receive $600 from the dental insurance.  Does it really make sense?

What if you didn't need dental care other than maybe a couple of cleanings during the year?  And, how many people really have two cleanings each and every year?  If you did have those two cleanings (about $100 each), you'd still have $300 in your wallet instead of having paid out the entire $500 to the dental insurance company.

There's a lot more to this equation ...

The American Dental Association tells us that "almost 35% of people with dental plans do not receive dental care in a given year.  Of those who do receive dental care, most incur dental care of less than $300 annually."

We can now make a case for dental insurance, no dental insurance, partial self-funding by the employer, no partial self-funding and voluntary dental insurance.  Which one fits you?

One thing is clear ...

As dental care plans, dental care and dental insurance costs continue to increase along with health insurance, gas prices, food prices and everything else, we should begin looking at things differently.  Would taking another look at dental insurance be the place to start?

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Do you know any "two wage-earner" families?

Are they banking 100% of the money their spouse is making?

If the answer is "No," then they must be using it for living expenses. If their spouse becomes disabled, what will that do to their standard of living? Will they still be able to pay their bills and maintain a comfortable standard of living?

Do you know a Business Owner who has a Business Loan?

He or she has (hopefully) understood the need for and has purchased personal disability income insurance. The amount purchased was probably 40% to 60% (tax-free benefit) of his or her personal income and was intended to cover personal living expenses NOT business obligations.

What about the business loan(s) that may carry a personal guarantee? Were you aware there is a product available that is designed to cover this specific contingency? And the personal benefit limitation of 40% to 60% of personal income does NOT apply? In most cases, the full amount of the remaining loan balance can be insured (this is in addition to any personal disability insurance the owner may have).

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Next BLOG:  Dental Insurance - Does it really make sense?

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