How does a medical plan’s administration affect customer value?
This component of the medical plan includes processing claims, answering customer questions, marketing costs and paying broker commissions. It’s important to know that the insurance company is effectively managing its administration services because this affects the cost of the health care plan and also can have an effect on quality of service to customers. Even if a health care plan offers the lowest premium, it will be ineffective without proper administration. As employers shop around for a plan for their business, they should make sure that the insurance plan is clearly defined and easy to understand. If employees aren’t able to effectively choose and use a health care plan, its benefits are sharply decreased. Why should employers take a close look at co-payments? With the rising cost of medical care, paying a percentage of medical bills can lead to sticker shock for most employees. With insurance co-pays, employees can know how much they should expect to pay for certain services,
