New York residents are no strangers to the exceptionally high cost of health care in the state. But it’s not just health care – New York’s overall cost of living is among the highest in the nation, and that trickles down to the prices charged by providers and health care systems.
Behind the scenes, several factors continue to drive costs upward, including an aging population and the prevalence of chronic conditions. Compounding the issue is a lengthy list of state-mandated benefits, which add to premiums without a clear evaluation of their return on investment. Finally, limited carrier competition in New York reduces the pressure on insurers to control prices, leaving employers and employees with few affordable options.
What can you do to combat these circumstances?
A trusted insurance broker is critical to navigating the current health care landscape in New York by offering:
· Advocacy. A strong broker is well-connected and able to negotiate on an employers’ behalf.
· Innovation. Modern brokers are defying the status quo to look for alternative solutions like self-funding or group captives, Professional Employer Organizations (PEOs), Individual Coverage Health Reimbursement Arrangements (ICHRAs), Participating Funding Arrangements (PFAs), point solutions that drive down costs and more.· Partnership. Local employers need to focus on their business and mission, leaving benefits strategy, compliance, implementation and administr
· Activism. Many brokers actively participate in industry associations, local chambers of commerce and similar groups – often giving them a seat at the table to advocate for policies that serve the best interests of both New York employers and employees.
· Holistic approach. Health care costs might be top of mind for New York employers, but a comprehensive approach to risk management should extend beyond medical insurance to include retirement plan options and property & casualty liabilities such as workers’ compensation, general liability, commercial auto, state Disability Benefits Law (DBL), Paid Family Leave (PFL) and more. An experienced broker should bring to the table a full view of a client’s risk profile to highlight gaps and opportunities beyond health care.
Daniel Wright is a managing consultant at Alera Group.