Here’s the real reason why Sherpaa is important. It actually bends the healthcare cost curve. There’s something called the Rule of 72. It’s a rule for estimating an investment’s doubling time. To simplify, if an investment has a 10% interest rate, it will take 7.2 years to double the initial investment. If it has a 5% interest rate, it’ll take 14.4 years to double. And so on.
Healthcare premiums in NYC are, on average, about $15,000 per employee and increasing about 14% every year. They have been for the past 20 years. There is no real suggestion that these premium increases will slow, even with Obamacare.
That being said, every company we cover with Sherpaa has had premium increases less than 6.2%. So, over 10 years, because premiums with Sherpaa increase about half as much as premiums in companies without Sherpaa, we save companies $110,000 per employee. And, the total cost to companies over the course of that ten year period is about $7,000 per employee for our services.
Why does Sherpaa make health insurance less expensive for companies? Well, here’s an analogy. If you’re purchasing car insurance, and you have an impeccable driving record, your premiums are much lower than reckless drivers. Because healthcare is so confusing and people have difficulty understanding how best to use the right, most effective, and most cost-effective healthcare, we’re all like those reckless drivers. But with Sherpaa, our doctors solve 70% of health problems over the internet without you having to see a doctor nor pay a co-pay. And for the 30% of the time you do have to see a doctor in person, you’re always seeing the exact doctor you need to see. So, office visits, ER visits, and, therefore, claims decrease by 70%. Your company starts looking like really safe drivers. Everyone saves time and money and has a doctor at their fingertips.
It’s a win/win/win and a short and long-term strategy to control costs and deliver employees a lovely healthcare experience. I’m very, very proud of that.