An option is a right, not an obligation. A real option is a financial option adaptation. It supports real world decision making through the integration of new information into a framework useful for executive management and corporate finance.
BENEFIT PLAN OFFERINGS
Option to Expand, Modify or Contract Offerings
Types of offerings may include a defined contribution approach, value based insurance design, working spouse ineligibility provision, tobacco surcharges, consumer driven health plan or terminating coverage.
PHARMACY BENEFITS MANAGEMENT
Option to Carve-out and Contract Directly
Adjust copayment levels, make formulary adjustments, adopt a tiered network approach restricting number of pharmacies, carve-out the pharmacy benefit manager from the carrier as a stand alone arrangement.
OUTCOMES BASED WELLNESS
Option to Invest in Results Based Approach
Review participatory, activity based and outcomes based programs to determine which approach has the best opportunity to exceed the ROI hurdle rate when measuring financial results of healthcare outcomes.
Option to Structure Contributions and Surcharges
Targets an employer contribution percentage to the total cost, redistributes employer cost across the tiers of coverage by setting constraints within tiers, allows for optimal configuration of tier structures, etc.
Option to Defer, Stage or Outsource Functions
Review of technology and administrative services to gain operating efficiencies for enrollment, eligibility maintenance, billing, compliance, reporting and information access without creating vendor mobility lock.
ALTERNATIVE RISK TRANSFER
Option to Review Other Financing Methods
ART includes, but not limited to, ASO with/out stop loss (e.g., specific, aggregate, advance dividend, etc.) and extends to using wholly owned or protected cell captive insurance company arrangements.