1. Employers should offer health plan options, so employees aren’t stuck with just one unaffordable model
Picking an employer-sponsored health plan shouldn’t feel like being handed only one pricey “luxury car” at the dealership, with no option to choose a model that matches your needs and budget.
Just as car buyers want options—from practical to high-end—employees deserve to compare health plans and select coverage that fits their lives, instead of being stuck paying for features they don’t use. Flexibility and choice are the keys to driving away with a plan that truly works for you.
2. The challenges with the expensive, luxury model of health plans—PPOs
Think of Preferred Provider Organizations (PPOs) like the flashy, feature-packed car that looks good on the lot but comes with a hefty price tag and a complicated owner’s manual. While PPOs are popular, they often come with high costs, confusing coverage details, and unexpected “fees under the hood.”
Just as luxury car buyers might be frustrated by hidden costs or unclear maintenance requirements, employees can feel dissatisfied with PPOs due to high claims costs and year-over-year increases. In the end, choosing a PPO can leave you paying more for features you may not need or understand, instead of getting a plan that truly fits your needs and budget.
3. The more affordable and practical model of RBP
Think of reference-based pricing (RBP) as choosing a reliable, practical vehicle. RBP uses straightforward, transparent rates, so employees pay only for what they need, much like selecting a practical vehicle for everyday life. With RBP, healthcare costs are clear and manageable, just like a car that offers value and utility.
RBP sets medical costs using clear, transparent rates—including Medicare—so you know what you’re paying for. Companies using RBP save around 20% on healthcare costs, and those savings get passed on to employees and their families.
4. Offering options in the employer-sponsored health plan dealership
Many employers are transforming the health plan “dealership” by offering both PPO and RBP plans as a dual-option. This way, employees aren’t limited to just one type of coverage; they can shop around and select the plan that truly fits their health needs and budget, just like picking out the perfect car for their lifestyle.
Employers have a unique opportunity to reshape the healthcare marketplace, just as car dealers do by offering a range of vehicles to match every driver’s needs. By providing multiple options, they ensure that every employee can drive off with coverage that’s reliable, affordable, and tailored to their personal journey.
This is a shortened version of an in-depth article written by Jeff Bak, President & CEO, for BenefitsPRO.
