Network Discounts 12345

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Why Network Discounts Matter:

Why Network Discounts Matter TPA/Rental Network vs. Carrier vs. Other Carriers

Why Network Discounts Matter:

Net Claims Paid account for the bulk of the overall Medical Spend. Network Discounts – or lack thereof – can have a huge impact on the total claim costs. When electing a network, the negotiated network discounts should be an important factor. There is a difference between TPA’s that utilize Rental Networks and the Carriers that utilize their own networks. There is also a difference between carriers, for example, Medical Mutual of Ohio versus Anthem versus United Healthcare. Significant savings can add up Why Network Discounts Matter

Total Plan Cost:

Assuming the same network discounts, utilizing a TPA will often result in lower plan costs. This chart is an example of TPA plan costs versus carrier plan costs, assuming that BOTH entities have negotiated a 32% Network Discount. As you can see, the TPA has lower fixed costs than a carrier and in this scenario, while network discounts remain equal. Total Plan Cost TPA versus Carrier

Network Discount Comparison:

This chart will show the Total Plan costs looking at different network discounts. Using a spread of 2.5%, you can see the significant cost ramifications of utilizing a carrier that has established solid network discounts. Even a small percentage can make a large difference. Network Discount Comparison The real value of good discounts

Please contact Seth Allen or Brian Lenzo with any questions:

Please contact Seth Allen or Brian Lenzo with any questions seth@pbsai.com brian@pbsai.com 1-800-558-5658

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