Jack Greene: Navigating the health insurance market

Business Today: The costs of health insurance have been increasing by 10 percent or more for the past several years. What are the prospects for that to continue, or will the increase be more moderate?

Jack Greene: As far as foreseeing the future, I just don't know. Current health insurance costs are being driven by consumer usage, which would be driven by the amount of hospital use, doctor visits and other health costs such as pharmaceuticals or testing. The factor is, as the cost of health insurance claims climb, health insurance costs increase because the cost is directly impacted by their cost and health insurance expenses. There are various ways to help keep those costs down. People are reaching older ages and confined to live forever. Science and technology allows more and more for those things to happen, but at what cost? Research and development in health industry and pharmaceutical industry are astronomical. Those costs go back into a persons cost of service and medication.

BT: Cape Girardeau County's employe health insurance plan included a $2,000 deductible, with the county providing a $1,000 health reimbursement account. As part of the plan, employees pay the full cost of their care up to the deductible amount and accept restrictions on where they can seek care to obtain maximum benefits? How popular are these kinds of plans?

JG: Well, the county plan has $2,000 deductible, in which the employee pays the first $2,000 of claims at network discount rates. The county contributes $1000 toward each employee's health reimbursement account (HRA) which is administered by health insurance companies. So in essence, the first $1,000 of claims is paid out of the HRA then the employee is responsible for the next $1,000

There are some limited networks, with some restrictions on where the employee can access medical treatment.

Then you have your health savings account (HSA), which is a plan similar to HRA except that both employer and employee can contribute to the account monthly. There is a bank account which is owned by the employee and is used to pay for any medical expenses.

These accounts are becoming more and more popular as consumers realize they can take responsibility for health care cost and for expenses. Costs can be controlled by asking questions about medical treatment and different options. Whether or not certain blood work is necessary or if certain tests really need to be administered, for example.

BT: What is the best way for small business owners to obtain affordable health care for themselves and their employees?

JG: They should sit down and determine what they're able to balance -- costs, benefits and expenses. It's a good idea to locate a reputable health insurance broker to help them find a plan that will fit their needs. For small business, there is a bigger benefit in going with a full service office. It cuts down on the time spent dealing with health insurance and allow more time to run the business.

BT: What role does competition play in providing medical services and rising health care cost?

JG: Competition is a factor in driving better services because the consumers are demanding more and more.

BT: What role should government play in making health care more affordable?

JG: Government does play a big role in health insurance. It provides care for those who can't afford heath care, which increases costs for those who can afford health care expenses. The reason being, services provided by doctors, they have to be recouped. Government shouldn't make a business of health care because of bureaucracy. I believe health insurance costs would increase because of bureaucratic costs. Health care shouldn't be a political football.