• About
  • Contact
  • Testimonials
  • Newsletter
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Monday, October 2, 2023
No Result
View All Result
California Business Journal
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
California Business Journal
crop

Trimming Healthcare Benefit Expenses: Transition From a Retail Plan to an Alternatively-Funded Custom Plan

PCS Advisers is an expert in helping businesses navigate through the complex maze that is our healthcare system.

by Chris Casacchia, Senior Writer, California Business Journal
A A
Share on FacebookShare on Twitter

Earlier in his career, Paul Seegert held roles that contributed to “the problem.”

Now he’s providing solutions to mitigate them.

Seegert spent more than a decade in management positions at national insurance providers, where he witnessed how “cyclical policies rack up unnecessary high costs for businesses in one of the nation’s priciest marketplaces.”

U.S. health care spending in 2018 eclipsed $3.6 trillion, or roughly $11,200 per person, according to the Centers for Medicare and Medicaid Services. The sector that year accounted for nearly 18% of the country’s gross domestic product.

ADVERTISEMENT

The insurance industry, an archaic giant, has operated in much the same way for decades, according to Seegert, the managing partner of PCS Advisers in Northern California. Brokers are still compensated on a percentage of premiums. As a result, they earn more when clients spend more, not less.

That contrast, according to Seegert, is “exacerbated in the supply chain” by pricing policies levied by hospitals and other medical service providers, insurance companies, drug manufacturers and pharmacy benefit managers. “The players on the other side all make money so as long as costs go up,” he says. “Employers on the other side have really no defense against this.”

Consolidation in the last decade, fueled by the Great Recession, has driven up healthcare costs in the Golden State, where premiums significantly outpace the nation. The average monthly U.S. premium for single coverage in 2018 was $574, according to the Kaiser Family Foundation. Oakland-based nonprofit, California Health Care Foundation, reported the average California premium for single coverage that same year was $726, or roughly 26% higher.

In real dollars, Californians pay about $2,000 more annually for healthcare services. “California is 10 to 20 years behind the rest of the country in innovating in healthcare and controlling healthcare costs as far as health insurance,” Seegert says. “We should have the best pricing in the country.”

Health benefit costs, according to the Society for Human Resource Management, were rising three times faster than the inflation rate and twice as fast as wage increases—before the novel coronavirus upended the global economy. Transparency, or lack thereof, is a catalyst.

Seegert recently concluded a renewal for a California car dealership with a few hundred workers. Its health insurer refused to disclose the amount spent on individual employee coverage last year, a reverberation of successful industry lobbying efforts in Sacramento over the years. “The employer is in no position to negotiate anything,” he says.

PCS generates revenue through plan development and consulting fees, retainers, brokerage services and/or bills clients based on a percentage of cost savings.

Demand for alternative healthcare plans are rising as the cost of healthcare benefits escalate amid a global epidemic. Benefit costs are projected to increase 5% this year to nearly $15,400 per employee, according to the National Business Group on Health. “Yet our typical client is well below $10,000,” Seegert says.

The Washington D.C.-based trade group, which represents large employers, released its forecast in August, months before the COVID-19 outbreak surfaced in late December in Wuhan, China. The virus is already affecting sentiment among finance chiefs across the country.

According to a March 30 Gartner survey, which queried 317 chief financial officers and other finance executives, 62% indicated their companies planned to cut selling, general and administrative budgets this year as a direct result of the coronavirus.

Healthcare benefits are typically one of the highest costs for businesses. “The interest level in what we’re doing has gone up,” Seegert says. “Whatever the world looks like post COVID-19, our message will be more interesting.”

Copyright © 2020 California Business Journal. All Rights Reserved.

PCS Advisers (calbizjournal.com)
PCS Advisers (calbizjournal.com)
PCS Advisers (calbizjournal.com)
PCS Advisers (calbizjournal.com)

 

Tags: 2018Alternatively-Funded Custom Healthcare PlanCaliforniachinaConsultingCoronaviruscost savingsCovid-19developmenteconomyfinanceGrouphealthhealth insurancehealthcareinsuranceinsurance companiesmedicalNorthernOaklandPaul SeegertPCS AdvisersSacramentosavingstradetransparency
ADVERTISEMENT
Chris Casacchia, Senior Writer, California Business Journal

Chris Casacchia, Senior Writer, California Business Journal

Chris Casacchia covers U.S. and global equity markets, finance, startups, venture capital, private equity, aerospace and SEC disclosures. A graduate of Arizona State University, Chris was Technology Editor for the Orange County Business Journal before joining California Business Journal as Senior Writer. He is also a Media Consultant.

Related Posts

Medicare Overview: What is Covered by Parts A, B, C & D?
Medicare Overview: What is Covered by Parts A, B, C & D?
How Healthcare Providers Utilize Twitter Effectively
How Healthcare Providers Utilize Twitter Effectively
Why you need health insurance
How Healthcare Companies Can Meet Regulatory Compliance
How To Choose The Right Medical Care For Your Family
How To Choose The Right Medical Care For Your Family
4 in store experience
Improving the In-Store Experience: 4 Interesting Ways it Can Be Done

CBJ Newsletter

Contact Rick@CalBizJournal.com

CBJ Rates and Demographics

1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram Youtube
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • California Hotel Listings
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Lawyers
  • Marketing
  • Medical
  • News
  • Newsletter
  • Opinion
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • More Truth About Temu: Is Temu A Chinese Company?

    The Truth About Temu: Where Is It From?

    0 shares
    Share 0 Tweet 0
  • How to Get Free Stuff on Temu (The EASIEST Methods Explained)

    0 shares
    Share 0 Tweet 0
  • Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • Investigation: Can TriumphFX Take Your Money?

    1 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    3 shares
    Share 0 Tweet 0
  • 30 Best Temu Alternative Apps To Buy from Online

    2 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • Temu’s New Shipping Policy Is A Smashing Hit For Shoppers All Over the Country

    0 shares
    Share 0 Tweet 0
  • Top 5 Flavors On Elf Bar BC5000 Review

    0 shares
    Share 0 Tweet 0

Latest Articles

Google Tests New Platform “Playables”

Maximizing Potential: How Assessment Training Drives Business Excellence

How Small and Large Businesses Develop Employees: 5 Key Differences

From Vision to Reality: Overcoming Challenges as a CEO in Today’s Business Environment

USA’s Betting Frontier: Kentucky Launch News and Status Updates

Stop Researching Products That Don’t Exist Yet

5 Fun Things to Do Outdoors by A Fire Pit

Which Gaming Platforms are the Most Popular?

Bitcoin’s Latest Performance and Future Prospects

6 Ways in Which Students Can Get Help With Their Math Assignments

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR