Physician Office Billing Practice Test

Choosing to carve out benefits during negotiations to change coverage can effectively enable an employer to reduce costs associated with Group Health Plans (GHPs). By delineating specific benefits that may not be essential for all employees or that can be purchased separately, the employer can negotiate lower overall premiums. This strategy allows the plan to focus on essential coverage, potentially lowering the financial burden both for the employer and the employees.

For example, an employer might decide to remove certain benefits that are not widely utilized by their workforce, such as extensive mental health services or certain specialty medications. This helps in negotiating lower premiums with the insurance carrier since the risk pool becomes more manageable and tailored to the specific needs of the employees. By restructuring the plan offerings, employers can lead to significant savings on their health care expenditures while still providing adequate coverage for necessary services.

This approach contrasts with other options presented, which might not directly contribute to a reduction in prices or could even result in increased costs or disruptions in care.