Healthcare Horizons: Approach



		When you choose to self-insure your healthcare expenses, you remove the direct financial incentive for the claims payer to control medical costs. This will lead to overpaid claims resulting in additional expense to your plan. With medical expenses on the rise again, employers cannot afford to continue funding overpaid claims. The best way to resolve this problem is to conduct periodic reviews of your claims data. This allows the employer and claims payer to work together to ensure that claims are paid as accurately as possible and that mistakes that are made are corrected. Recovery Potential A company with 1,000 employees typically has the opportunity to save more than $150,000 in medical claims costs. This potential can be realized through the identification of a 2% error rate. Typical error rates for Third Party Administrators range from 2% to 5%. A 2% error sounds small until it comes out of every dollar your company spends on your employees' healthcare.