Why Trucking Companies Uniquely Benefit from Self-Insured Health Plans

While all companies could use more control, a few industries in particular benefit from rethinking their approach to health insurance. One of these is the trucking industry. With a background in the skilled trades and trucking industries, our business manager Mike Lutz understands deeply the healthcare struggles many trucking companies face. 

Most trucking companies pay more for health care.

Healthcare is typically one of a trucking company’s top five operational expenses, right behind payroll. Not only do these companies face slimmer margins, they also encounter a lot of prejudice from the healthcare industry. Lutz explained, “When some insurance carriers find out a client is in the transportation industry, they won’t even give us a quote. And even if the quote is accepted, we usually see premiums that are five to 15 percent higher than other SIC codes.”

Drivers consume more healthcare.

A 2015 CDC survey found that long-haul truck drivers had a higher probability of risk factors—like tobacco use and obesity—compared to US workers in other industries. They also found higher rates of heart disease, diabetes, high cholesterol and sleep apnea. In short, trucking employees typically consume more healthcare than employees of other industries. This sometimes makes it difficult for trucking companies to obtain affordable health care packages from a traditional carrier.

A self-insured plan design offers better care.

Trucking is competitive and has slim margins, which puts transportation business owners in a vulnerable position. They’re forced to cut employee benefits and accept plan renewals, unaware that other options exist. Lutz is working with trucking company owners to help them uncover alternative plan designs to make employee healthcare more affordable. Savings of up to 20% in the first year can make a substantial impact for a trucking company. The reduced expenses allows them to allocate extra resources toward fuel and higher wages.

Lutz worked with a trucking client, which had recently conceded to a generic prescription drug plan because of budget constraints. As their healthcare plan’s cost increased, they had to start cutting employee benefits. TCHP was able to redesign the plan to give their employees access to brand-name drugs for free when working with a medical manager to guide treatment plans.

“When trucking companies make smart decisions and visit high-quality doctors, they’re able to get free healthcare and perform competitively in a tight market,” Lutz said. “All in all, it brings me a lot of joy to support my blue-collar brethren.”

To learn how a Total Control Health Plan can help reduce costs and improve employee healthcare plans, reach out. We’re happy to help you get started on a path to better care for a better price.

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