UNIONS CHEAT MEMBERS OUT OF HEALTH AND WEALTH

Let’s start by saying that we are pro-member, pro-health and pro-wealth!  Now that we’ve gone on record stating that we are not bias towards Unions, let’s talk about the health of America.  It’s not good.  It’s getting worse and union members aren’t any healthier than the general population, yet they have some of the best health benefits in the nation!  So, what’s wrong with this picture?  Just look at the recent CDC stats on obesity…it’s appalling. 

America spends more on healthcare and is one of the sickest nations in the world.  You can draw your own conclusion on that fact but it’s now obvious that the amount of money in terms of benefits that are available to an individual or union member makes no difference in their health status.  It’s the member that makes the difference in their personal health.  If we accept these facts as correct then union members are paying huge amounts of cash to doctors, hospitals and administrators.  Why not pay union members to be healthy?  Yes, that’s right.  It’s the concept inherent in a Consumer Directed Health Plan with an HSA.  But Unions have been loath to listen to the facts.  We say it’s time for the Unions to stop cheating their members out of health and wealth.  Here’s how:

The facts speak for themselves that CDHP changes an individual’s healthcare behavior.  McKinsey’s research and recent findings continue to show that 25% or more of members in a CDHP change their actual health behavior for the better.  They stop smoking and lose weight.  First year medical trend reduction is in the range of 14-17%.  Health spend continues to decline as members maintain their better health status year after year.  This demonstrates how improved health behaviors and lifestyle changes can impact healthcare affordability.  Where does the saved money go?  In a CDHP model it goes to the member’s HSA account.  Cash, tax free… accumulating tax free for the use of members and their families for future medical care and retirement.  Who can argue with a plan that makes members healthier and wealthier?  The transfer of wealth to union members might possibly be the largest transfer in history and will eclipse any rate of pay increase that most Americans may see in the next 20 years.

Union leaders continue to perceive CDHP as a “take away” rather then a benefit and continue to ignore the hard facts that members on a CDHP are not only getting healthier but wealthier.

Unions have special leverage with their management and are in a position to seek this wealth transfer to their members.  This is not a wealth transfer from management but from the medical establishment as a reward for just being healthy.  We think it’s a no-brainer for Unions to go to management and seek a CDHP/HSA plan that pay first dollar for preventive care, then ask management to fund the first two year deductibles essentially giving members a “ZERO” deductible plan.  Stay healthy and get wealthy!  It’s a win/win/win situation for members, union leaders and management.

Here are the facts: 80% of members in any health plan never spend on average more than $800 a year on healthcare and that includes families.  Most members will have their deductible accumulated within a year or two.  For every dollar “shifted” from a member’s paycheck to their own HSA account they will save about 42 cents in taxes while management saves about 8 cents in taxes.  For example, a contribution from management of $2,000 a year saves enough taxes ($840) to pay for 80% of all workers’ healthcare in any one year.  Re-routing tax dollars for the benefit of union members seems to be a good idea too.

New point-of-service adjudication and payment technology now makes the implemention of a CDHP with HSA a hassle free experience for members, since members no longer get reams of bills at home nor have to deal with a debit card.  Just walk in, get treated and walk out.  It’s Simple.  Imagine a system that enriches the union member with tax savings, tax free dollars, a “zero” deductible plan, paid preventive healthcare, additional money for retirement, no more bills at home and that actually can make the member more healthy while at the same time saving management money that makes the Union leaders look like heroes.  The time has come for Unions to take a real close look into the world of CDHP.

About Simplicity Health Plans

Cleveland, Ohio - Simplicity Health Plans is the best implementation of a CDHP/HSA.  It aligns the interests of the Employer, Employee and the Provider to provide a turn-key, fully integrated Consumer Directed Health Plan. It also delivers a low cost, scalable solution to control claim costs. The Plan fuses unparalleled technology, point of service adjudication, real-time data, and first of its kind anti-fraud controls. Services include an ERISA compliant health plan, HSA administration and banking, medical claims administration, TPA functions, pharmacy, dental & vision, COBRA, stop loss reinsurance, real-time Utilization Review and Case Management, Health Coaching, Comparison Shopper, Health & Wellness programs, and a host of on-line tools for Providers, Employers and Members.

About the Authors

Lisa M. Holland, RN, MBA has been in the healthcare care industry for over 18 years and held senior level positions within major healthcare organization in the US. Lisa is an accomplished business development professional. Lisa’s professional objective is to promote appropriate utilization of healthcare services/solutions that empower healthcare consumerism.

Gregory J. Hummer, M.D., has spent the last 18 years developing and perfecting Simplicity Health Plans to solve the vexing complexities, out-of-control costs, burdens and inefficiencies that are associated with healthcare coverage in America today. Dr. Hummer is chairman and CEO of Simplicity Health Plans.

To learn more about Simplicity Health Plans, contact Lisa Holland at  401.487.1450