One thing you learn if you work around insurance for a while is that instability and unpredictability drive everybody’s costs up. A lot. And it turns out it doesn’t matter if that’s car insurance, homeowners insurance, life insurance or health insurance.
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.
The Difference Among PPO, HMO and High-Value Networks