Health insurance companies like Blue Cross and Blue Shield of Louisiana have a long history of trying to slow down the rapidly rising cost of healthcare. Over the years, a variety of strategies have emerged. Frankly, we’ve tried lots of stuff. When a company comes to us because their employee healthcare costs are going up too quickly, we try things like cutting out high-cost medical providers, steering people to less-expensive (but equally effective) drugs, raising out-of-pocket costs to discourage non-essential healthcare, and changing the mix between the employer contribution and the employee contribution.
By Michael Bertaut, Healthcare Economist
Anyone who has put together a home budget can tell you that the simplest (in theory) way to save money is to spend less. That applies to healthcare as well. At Blue Cross, we spend 84% of your premiums on actual healthcare, so we can make the biggest impact in controlling premium costs by actually keeping healthcare spending lower.