Benefits for Labor Unions
We have built a machine that can transfer large chunks of income from hospitals, doctors and other healthcare providers to employers and their employees—i.e., your members. This machine is designed to make these providers compete vigorously for the business of your membership through price competition and the quality of care that is delivered. Price competition means lower medical prices, which will decrease the cost of healthcare. If employers pay less for healthcare, then opportunities are created to bargain for better wages and benefits for members.Competition—especially international competition—may have made it more difficult for members to receive meaningful wage increases over the past several years. Now some of those losses can be recovered by forcing intense competition on those who deliver healthcare to them. Other savings come from major efficiency increases that are produced uniquely by the RE·MEDI system, and which are described in other articles at this Web site. The size of these total savings is substantial—our conservative analysis indicates a savings in annual healthcare costs of at least 30 percent. Considering that employer healthcare costs are approaching $10,000 per employee annually, the potential gains are substantial.
Our healthcare machine—the RE·MEDI system—will not only enrich your members, but it will empower them with healthcare information so that they can identify the best providers. The RE·MEDI system has been designed to make employees the world's smartest healthcare shoppers. Because they are given a powerful incentive to become smart shoppers, they will force doctors and hospitals to compete vigorously for their business.
[If this is your first stop after visiting our home page, click here to read a synopsis of the RE·MEDI system, or for more detail read the RE·MEDI Overview article. The many benefits to be gained by members are discussed in our article on Benefits to Consumers.]
Under RE·MEDI, there are two negotiatable benefits for members: the benefit level (defined below) and the end-of-year dividend. Let us say that an agreement is reached with a company's negotiating team that all savings produced by RE·MEDI are to be shared on a 50-50 basis with members. Some of these savings will be determined by the negotiated benefit level.
The benefit level is a unique RE·MEDI concept. It is expressed as a percentage and represents the percent of local providers who can administer a specific treatment either at no cost to the member or with a Ca$hback Coverage rebate. For example, if the negotiated benefit level is 70 percent, then a member can obtain any treatment from 70 percent of the local providers and either have no out-of-pocket cost or receive a cash rebate. For the other 30 percent of providers, the member would pay the difference between the benefit level and the provider's fee.
In any given year, the higher the benefit level, the greater will be the total payout to members in the form of Ca$hback Coverage rebates. Depending upon the negotiated benefit level, there could well be RE·MEDI savings left over at year's end, and these savings can be distributed as an end-of-year dividend to the members. In our example, the end-of-year dividends will be sufficiently large so that the total savings resulting from the RE·MEDI system will be shared equally by members and the company.
We have developed some formulas for allocating the savings between Ca$hback Coverage and the end-of-year dividend. Please contact us for details.