Alternative health plans (AHP) are the next wave in health plans, addressing consumer concerns about the complicated nature of some healthcare plans and affordability issues. These innovative plans are consumer-driven, offering employees more healthcare transparency and simplicity in their decisions. AHPs can also result in savings for employers and employees.
When healthcare is complicated, expensive, or hard to navigate, people may delay care and make decisions without clear data. This can result in both negative health conditions and higher costs. According to a recent study by Mercer, when coverage is easier to understand, there are two important benefits:
- Employees who are confident they can afford healthcare are more than twice as likely to be thriving in their current role.
- These employees are also more likely to believe their employer cares about their health and well-being.
Businesses are enthusiastic about AHPs, which are sometimes referred to as intelligent plan designs. Leaning on trusted partners like Anthem and the Anthem Alternative Plan portfolio can help businesses join the transformation to AHPs. The new plan designs are an extension of an ongoing commitment to price transparency, clarity, and simplicity in healthcare plans.
What Makes An AHP Different?
Several key elements differentiate AHPs from traditional health plans:
- No deductible or coinsurance: simplified payment structures that eliminate traditional deductibles and coinsurance through copay-centric plan designs
- Lower cost: a focus on affordability through innovations in plan designs such as $0 cost for many basic services, mental health visits and virtual visits, and guidance to high-performing providers and optimized sites of care
- User engagement and empowerment: encouraging members to be active participants in their healthcare decisions and promoting informed choices
How Does An AHP Work?
AHPs are built on the idea that an informed consumer is an empowered consumer. These plan types increase healthcare transparency through:
- Options: empowering informed decision-making and driving cost-of-care savings for both your employees and your business
- Clarity: simplifying healthcare with straightforward plan designs, predictable pricing, and streamlined digital solutions for seamless access to care and cost information
- Choice: featuring broad network access with unique provider designations and virtual care options and providing employees with better information to help guide their care choices
- Cost savings: driving significant savings through cost-effective plans that reduce out-of-pocket expenses and reward employees for using high-quality, cost-effective providers
These features give people the confidence to make their selections without worrying about sacrificing quality and incentivize making smart choices.
How Does An AHP Benefit Your Business?
Most healthcare consumers prefer to stick with their current primary care provider, but up to 70% are open to changing if they have alternatives that provide better options. Some differentiators include price transparency, easier navigation of information, and additional care options, such as telemedicine. AHPs often provide those features.
Studies have found that health insurance is the job benefit people value most. Offering an innovative plan to your team can keep your business competitive by attracting and retaining top talent. Consumers have shown an increasing demand for healthcare plans that deliver clarity, simplicity, and savings. AHPs provide your employees with several advantages, including:
- Offering powerful, easy-to-use tools for members to make informed decisions
- Simplifying the member experience with predictable pricing
- Managing costs without sacrificing quality of care
- Empowering smarter, personalized choices of providers and better health outcomes
When employees have healthcare transparency, they can make choices that better suit their needs, which can be beneficial to everyone. In addition to giving employees additional control of their healthcare decisions, AHPs can lower claims and administrative spend for businesses.
With the emergence of AHPs, the next generation of healthcare innovation is here. Finding the right AHP for your business can make your workforce healthier and happier and save you significant cost in the process.