Comparing Cost Control Strategies

Comparing Cost Control Strategies

There are a small number of cost control strategies that an employer- sponsored plan can implement. The employers can only present a certain number of products or services to their employees. Employees can also purchase options, called riders, to supplement their health plan coverage. This is used for things like complementary healthcare such as acupuncture, massage, and counseling. Sometimes this can also include dental and vision care depending on the employer plans. Typically enrollment for employer- sponsored plans takes place annually. This enrollment is called "open enrollment." For the new employee that joins the company after open enrollment, and then there is a waiting period that the employer has specified for enrollment. During any enrollment, employees select the type of benefit plan for the next year. This type of plan has no third- party administrators. There are different levels of premiums and deductibles that are available to choose from.

In self-funded health plans, cost control strategies are produced to save money. Employees do not have the capability to buy riders under self-funded plans. Open enrollment is not an option under this plan, but there is a waiting period for enrollment. Time and again, third party administrators will handle parts of the insurance's management, like collecting people's premiums from them.

Adequate coverage is available in both plans, but the self –funded plans generally have higher risks. Both types of plans are not portable from one job to the next. If an individual changes employers, insurance is lost after a certain number of days. However, coverage options are available through cobra in most cases such as these. In both plans, there are provider networks of PPO, POS, and HMO. Employer –sponsored plans sometimes allow the employee to select his or her own provider network, but this liberty can have