When you need to secure quality healthcare coverage options for your employees, you may be considering utilizing a Preferred Provider Network, or PPN but can they really save you money?
Providing employee benefits for your business can be costly, but there are some cost-effective options that are available and can be arranged through a trusted insurance broker or advisor.
When a PPN is used in conjunction with a fully insured plan, a Health Spending Account (HSA) or an administrative services only plan (ASO), the cost savings can benefit everyone involved.
What is a Preferred Provider Network (PPN)?
A Preferred Provider Network is a group of selected healthcare providers who give medical care to members of the network. A PPN is typically identified by one or more of these characteristics:
- A contractual relationship between the medical professional and the insurer, which may include pre-arranged costs for service provided.
- Treatment provided is pre-approved by the insurer and there may or may not be a cap on the cost of treatment.
- An individual’s participation in a preferred provider network results from an insurer’s referral.
How Can a PPN save me money?
Preferred Provider Networks are most useful for administrative services only and Health Spending Account plans, as they help to stretch the benefits dollars even further. With a PPN the costs for services are often reduced at the point of sale. This means the overall claim amount is less and leaves more money in either the HSA or the group’s claim reserve account.
When an employee uses a PPN in conjunction with an HSA or ASO, the potential for savings greatly increases. Utilizing a Preferred Provider Network means less dollars are needed from the employees’ HSA or ASO account for things like medication and doctor’s office visits.
Connect with a Trusted Insurance Professional
There are many different Preferred Provider Networks to choose from. To find out more about how PPN’s can save you money talk to your trusted insurance Advisor. He or she can answer any questions you may have about and help you make the best decision for your business.