In this video, we break down how insurance costs are linked to healthcare usage and details the impact of different insurance funding models:

• Healthcare Usage: Insurance costs are directly related to the extent of how an individual uses healthcare. This doesn’t mean that the individual is necessarily responsible for all the healthcare costs they incur, but how frequently or infrequently a person or group of people uses it determines overall cost for insurance.

• Fully-Insured Plans: Since many companies are pooled together, individual company health trends have minimal impact on insurance costs.

• Self-Insured Plans: Individual company health trends directly affect insurance costs, with lower usage leading to lower costs and vice versa.