Why is trend important?
You have probably noticed that some of the items in the list above are out of employers’ control. For that reason it is critical to do two things. First, we must examine and understand the historical and future trends in the industry, as well as those trends and other changes specific to our clients. Again, while price inflation or deflation affects all employers without bias, employee aging and demographics will vary by group. Second, we must develop and implement strategies that are customized to counteract the impact of healthcare cost trends. While cost-shifting through plan design or monthly contributions can be an effective short-term solution for reducing costs, it will not counteract long-term trends, so our clients need strategies that keep the bigger picture in mind. The purposes of a healthcare strategy are to:
Why is trend important? You have probably noticed that some of the items in the list above are out of employers’ control. For that reason it is critical to do two things. First, we must examine and understand the historical and future trends in the industry, as well as those trends and other changes specific to our clients. Again, while price inflation or deflation affects all employers without bias, employee aging and demographics will vary by group. Second, we must develop and implement strategies that are customized to counteract the impact of healthcare cost trends. While cost-shifting through plan design or monthly contributions can be an effective short-term solution for reducing costs, it will not counteract long-term trends, so our clients need strategies that keep the bigger picture in mind. The purposes of a healthcare strategy are to:
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