Pub. 6 2017-2018 Issue 4

Spring/Summer 2018 25 Q: How much on average have health care costs risen in the last few years? A: 6.20% in 2016 6.00% in 2017 6.50% in 2018 Q: What are some factors that drive the cost of Health care? A: Skyrocketing prescription costs, rising hospital and physician costs, advances in technology, increase in chronic conditions, increased usage, aging population and lowhealth literacy are some factors that can increase the cost of health care. Q: What are some options for our dealership and our employees to combat, control and lower costs? A: Employers should become more proactive and work closely with their broker/consultant in instituting strategies and programs to reduce overall health care costs including some of the following: • Using health care data to drive health care strategy. • Greater emphasis on consumer driven health plans (CDHP’s). • Evaluatingstrategicvendor/carrier andbroker/consultantmanagement. • Looking at long-termsolutions and plans, rather than short-termfixes. • Promoting employee health education and wellness. Q: Consumerism & CDHP’s. What does our deal- ership need to know? A: Health care consumerism has always been about empowering health care consumers to select more cost-effective, appropriate care. Health care consumerism aims to achieve the following goals: • Use vendors and consultants that will help educate employees to become active participants in their health care decision-making. • Encourage employees to spend their health care dollars wisely and save money. Educate them on plan differences and benefits (higher cost traditional plans vs. a lower cost CDHP) urgent vs. ER, generic vs. brand, etc. • Help employees take charge of their health by helping them under- stand their conditions and treatment options and change behaviors to reduce unnecessary health risks. Q: Consumerism & CDHP’s. What are the basics? A: Most employers offer CDHP’s in conjunctionwith a health care account. Although HSA’s are themore common formcurrently, these accounts take two forms. 1) Health Savings Account (HSA). Opened by the employee and can be funded by both the employer and the employee. 2) Health Reimbursement Arrangement (HRA) - owned and funded only by the employer. When either is implemented it is imperative to use resources (broker, vendor, benefit administration) to educate and encourage employees to understand their plan and manage their costs through effective use of health care services. Q: How popular are CDHP’s? A: Companies offering CDHP’s have increased from 17% in 2011 to 28% in 2018 (source Kaiser Family Foundation). If your dealership would like to see the savings of implementing a CDHP and reviewhow to best educate your staff and employees of their benefits, EPIC is pleased to provide a full review and consultation to SCNCDA members. EPIC ranks among the top 15 retail insurance brokers in the United States and is the largest insurer of auto dealers in the state. HEALTH CARE COSTS, CONSUMERISM AND YOUR EMPLOYEE BENEFITS PLAN. HOW DOES YOUR DEALERSHIP MANAGE OR DECREASE THE COST OF YOUR HEALTH INSURANCE PREMIUMS? Alison McCallum has been in the employee benefits industry for over 20 years. She is a Principal with EPIC insurance Brokers and Consultants, the only CNCDA- licensed broker. With this partnership EPIC offers unique services available to SDNCDA dealer members at no cost. If you have questions or would like further informa- tion please feel free to contact her at (949)417-9136 or alison.mccallum@epicbrokers.com .