Why didn’t the government use the eRFX process to reduce new exchange based health insurance premiums?

October 1st, 2013

If you want to lower your health insurance premiums read on.

Today’s post is by Ryan Melowic; Assistant Vice President of COE at SafeSourcing.

The significance of this post on this day, October 1st, 2103 is that medically uninsured Americans can now register and pick from private health insurance plans currently controlled by our government.  The actual coverage will be effective January 1st 2014.  These health exchanges will benefit a large number of people, but it will also put a burden on those who choose to remain uninsured. The creators of this plan had to have put great thought into this plan. 

Did our Government utilize strategic online eProcurement tools for final price negotiations with health insurance vendors? If not, I believe that uninsured Americans could have been paying as much as 8 to 15 percent less than they should.  There would be no change in the quality of the health plan and the government would only have to pay the event fee.

Online eProcurement events are setup around specific terms and conditions and specifications.  With that said, during the Government’s creation of this plan, terms and items were hopefully well thought out.  If so, these Items can be taken to market and bid on by the key vendors in the heath market industry.  Plan details would be referenced in the terms and conditions of the event.  Once the bidding plan was developed and the vendors have an opportunity to work through pricing in the agreed upon structure the actual eRFQ itself could conclude in a matter of a few hours.  If it lasts longer, it is just additional money that the American people can use for other than health care commitments.

This same process can and has been used by companies in order to lower their health plan rates.  Just think what 8 to 15 percent reduction in your health care expenses could add to your bottom line.

SafeSourcing wants your company to complete eProcurement events with us!  We have the category knowledge, vendors, tools and commitment to insure that your company’s eProcurement events are a success.  For more information as to how we can help you with your company’s health insurance category procurement needs, please contact a SafeSourcing Customer Service Representative

We always look forward to your comments.

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