Prescription Drug Coverage
Wednesday, April 25, 2012 |
posted by Lori Power |
Posted in: benefit coverage, coverage, drug coverage, drug benefits |
A chronic problem in the group insurance arena is how to combat the increasing cost of prescriptions, while ensuring employees continue to receive the coverage they need. Before a strategy to combat these increasing costs can be implemented, it is imperative to understand the reasons behind the increasing costs.
According to Express Scripts Inc. (ESI) Canada, annual drug spending per employee in the year 2000 was $329 compared to $736 per employee in 2011. But getting to the ‘why’ is more beneficial when building strategy.
Fifty-two per cent of all drug costs are spent on chronic diseases such as high blood pressure, type 2 diabetes and high cholesterol. In fact, 85 per cent of Canadians will have a chronic condition by the time they are 45 years old.
Every year, new drugs and new drug therapies are introduced, and biologic drugs are becoming more main-stream and cost substantially more than traditional drug therapies. As some drugs lose their patent exclusivity, leading to the introduction of low price generic equivalents, these costs are offset, but the fact of the matter is we have an aging demographic and the ‘need’ for these treatments continues to monopolize the funds allocated to benefits, resulting in double digit plan cost increases.
The good news is that 85 per cent of people who use pharmaceuticals claim fewer than $1,000 per year. So the first step is to stop over insuring a product that may or may not be used. Having an ‘unlimited’ drug plan means that, as a company, you are paying for the ‘risk’ that someone may use the plan to unlimited limits.
Implement wellness plans such as employee assistance programs that cost a mere fraction of what a drug benefit plan costs and start getting your workforce healthy. The cost of prevention is a long-term investment strategy that pays dividends by saving you money later on, while your workforce is healthier.
Overcome the Distraction
Wednesday, December 14, 2011 |
posted by Lori Power |
Posted in: life insurance, insurance, insurance coverage, insurance plan, health spending accounts, benefit coverage |
The discussion around the new Distracted Driving laws in Alberta makes me think about all the things we get ‘distracted’ by.
As I drive down any Metro road, at any given time, there are so many distractions - other drivers, mosquitoes that have snuck in, my kids. But road signs ... they have reached a whole new level of distraction. Never mind the old fashioned wooden advertising, we’re now in the electronic age and these new signs – jumbo billboard types that use to be a rarity to see at a concert in a stadium – are now the norm on the side of the road, not just to advertise, but entertain as you drive by or sit in traffic. Never mind trying to figure out your next turn or even what street you’re on, these new signs deliver what to eat, what to wear and where to go to do these things and how long it will take to get there. Who needs GPS?
Of course the idea of the new law is to have your eyes on the road ... but the message ... so glittery and available, taking us off course, encouraging us to stray from the intended purpose - getting where we are going safely.
Isn’t this a metaphor for most things in life and business?
With the intention of getting things done, we are often put off course by the distractions, the glitter, the want. It is the want that often makes us forego the need even with our health coverage. So, instead of having the right benefit plan, which covers the needs and takes care of the things we want, we get distracted by the glitz, the show, the sale.
In our business of employee benefits, we are jaded. We KNOW people need coverage for life and disability insurance, health and dental coverage, but people get distracted (scared away) by the cost of implementation and swayed by glittery mix messaging. In the end, often people forego what they and their employees “need” and they wind up with substandard coverage that creates havoc and frustration when the time comes for them to make a claim.
The point, stay focused. Keep your eyes on the road and the job at hand of providing benefits to cover the necessities. Engage qualified, competent consultants who will ensure you understand exactly what you are buying and why you are buying it. If you don’t have a need for it, don’t buy it ... it really is that simple. Then when the time comes, you have the benefit of necessary coverage, at an acceptable price without any barriers to successful outcomes.
Celebration
Wednesday, November 16, 2011 |
posted by Lori Power |
Posted in: quikcard, quickcard, insurance, group insurance, group benefits, benefits, benefit coverage, benefit products, insurance coverage, life insurance |
Anniversaries, birthdays, family events and other special occasions are wonderful time markers. They symbolize growth and maturity, both personally and professionally.
It is truly unfortunate that sometimes the only professional time markers you hear of are the BIG ones: 10-25-50-100 years. What about all the hard work that goes into a business all those other years? As we start to poke our heads out of the current recession and reflect on all those businesses that didn’t make it through, join us in giving thanks that we’re still here, striving each day to do what we do best.
As with many companies, we too have passed some mile stones, although none of the BIG markers, but worth celebrating in any event.
- It has been 47 years since the ADSC (Alberta Dental Service Corporation) founded the original company. Dentists working for Dentist providing innovative dental benefit plans for companies in Alberta.
- It has been 22-years since the birth of Quikcard Solutions Inc. providing self-directed, self-funded health and dental plans with more flexibility, and certainly more cost effectiveness than traditional benefit plans.
- 12-years is the marker since Quikcard moved from being an Alberta based company, to a national company, offering their unique suite of services to all business in Canada (except Quebec) by opening a second office in Nova Scotia.
- The last three years marked another evolution in our growth, moving us to provide both insured and self-insured benefit plans through Quikcard Benefits Consulting Inc.
Many of our clients have grown and continued with us through every stage of progress and development since the very beginning and for that we thank them for their continued support.
For all of our clients that have joined with us, or are considering joining us now, many thanks for your business and trust in our services.
As we grow, age (don’t tell anyone) and mature (hopefully) both personally and professionally, we promise to continue to strive to offer the very best solutions in employee group benefits.
And for all of you celebrating a birthday, anniversary or a special milestone, take stock and enjoy your day. You have earned it!
Stop the Insanity
Wednesday, August 10, 2011 |
posted by Lori Power |
Posted in: employee benefits, life insurance, group benefits, benefit coverage, insurance, insurance coverage, group coverage, benefits, benefit products, insurance products, quickcard insurance, benefit plan, coverage, health spending accounts, health spending account, group insurance, employee coverage, employee group benefits |
Everyone in business knows the old adage of insanity … continually doing the same thing and expecting different results. The same applies to Employee Group Benefits.
Time after time, employers get fed up with their current benefit plan- the benefits being provided and, especially, the pricing. However, instead of looking for something different, something to stop the cycle, they typically just change the carrier and/or broker.
So, what has been accomplished in this scenario? Either the existing broker or a new broker suggestspricing can be established with a new insurance carrier where the company can get better pricing with no loss of coverage. It’s a good deal and typically employers go for it, saving around 10-12% over the existing rates. Inevitability, time marches on, once again the pricing has gone up and the cycle repeats because there has been no real change to the benefit plan.
In essence nothing changes as the business owner has enacted the same old strategy, but expected different results.
It can be different with the introduction of Strategy, Analysis, and Planning.
A good plan analysis will review the existing plan design and measure it against the overall business objectives of the company. This means reviewing the history of the benefit costs and claims, measuring results, accounting for the money being spent on coverage and comparing it the money being spent to provide the coverage. A benefit plan should mirror the business plan, being just as fluid and changeable as the business over time. And, just like a good business plan, the owner should know all the ins and outs of how everything should be working compared to how it is actually working.
To stop the insanity, look at what is important to the plan members, understand the pricing, and ensure catastrophic events are covered. Then plan and implement strategic solutions which ensure superior coverage and price stability over time so the cycle of insanity is stopped.
A Glimpse of Real Life
Wednesday, April 13, 2011 |
posted by Lori Power |
Posted in: life insurance, insurance coverage, travel insurance, travel coverage, travel benefits, benefit coverage, group benefits, group coverage, insurance, insurance plan, insurance products, quikcard, quickcard insurance, employee benefits, benefit plan, employee coverage, coverage |
It is an all too common scenario for those of us in the benefits world to hear of employees who chose not to participate in the benefit plan only to need it later.
While an employee may have health and dental coverage through their spouse's plan, that spousal plan does not cover the employee for life or disability coverage. If the employee refuses all benefits, they and their family have no coverage for the employee in the event of an accident or illness that disables them or takes their life.
Maybe it’s a year or two, or maybe it’s as soon as three months later and this employee suffers a stroke, is in a car accident or is hurt while working on a truck. Now they have no benefits to help them through this difficult time.
Once treatment is received, the first phone call typically goes to the employer to check what benefit plan they are on and if they have disability coverage. For those without coverage, that call frequently goes like this:
“I know I turned it down before, but now I need the coverage and I’m willing to pay the premiums. It’s pretty tight just now with no income and all of my existing insurance is tied to my house, car and other loans … I thought I had coverage, but I’ve just gone through everything and I don’t. When I was offered the plan, I didn't realize I wasn't covered for this and now I have a family that needs to eat, be clothed and bills to be paid and I have no income.”
Don't be the one to make this phone call. Insurance carriers cannot make exceptions in this type of situation. Just like with car insurance, you cannot get coverage once you are sitting in the middle of the intersection involved in a car accident. There is NO coverage available after an incident has occurred.
Was your coverage clearly explained to you? Do you know what coverage you and/or your spouse have? Have you ever experienced a situation like this?
Benefits So I can Understand Them
Wednesday, March 23, 2011 |
posted by Lori Power |
Posted in: life insurance, insurance, group benefits, benefits, benefit coverage, insurance coverage, insurance plan, group coverage, experience benefits, insurance products, benefit products |
Having been in the insurance arena for a number of years, I know insurance one of the harder topics to understand. The language of insurance is polluted with jargon making it difficult for people to relate and understand how it applies to them. By the time clients are at my door, it takes hip waders to get though all of the misconceptions they have been burdened with over the years.
In an era of abundant communication through such venues as twitter, blogs, facebook and the internet, in general, it should be easier to understand services like insurance and benefits, but it’s not. Sometimes those misconceptions are created through the legalities necessary in the business. Legalities aside, I will try and explain benefits in an easily understood way.
Life Insurance, it’s the lottery that ALWAYS pays out … you pay your premiums each month, like purchasing your ticket each week, and eventually someone wins because death is a sure and certain event.
When it comes to group benefits, Life Insurance, Accidental Death and Dismemberment (AD&D), Dependent Life Insurance and Long Term Disability are four of the most common insurance products. Pricing for these is not significantly different from one insurance carrier to another as it is based on national pooled information. If we consider these four as the “insurance” side of our benefits, then pricing for these would be much like going to the pumps for gas … there really is little difference. What makes the difference is the quality (in each consumer’s opinion) and the size of the tank. The size of the tank meaning how much insurance is purchased.
The other side of a benefit plan is a where consumers live day-to-day. That’s where they purchase services such as prescription drugs, health, vision and dental care. We’ll refer to these benefits as experience benefits because they are based on consumer usage. Think of these like going to the grocery store. At any one of the big grocery chains, the price difference between the same cut of beef can be significant depending on how much is required, the supply the store has on hand, their supplier and even the time of the year it is purchased.
Shopping for these benefits takes strategy and know how. The plan design, or list of benefits (groceries), necessary for your company makes a big difference in price.
Providing coverage just to have a plan in place is one thing. Providing coverage or benefits that actually meet people’s expectations and needs is what makes the difference. For the person who requires prescriptions, a least costly alternative makes all the difference. Having a good benefit plan doesn’t mean busting the pocket book, it means knowing what you are purchasing and purchasing the right products for your business.
Do you know what benefit coverage your company needs? What means are you using to learn that? How does your company adjust for the changing needs?
