Jon Warner is no stranger to health care and health insurance.  His 25 years experience in consulting employers and individuals on insurance options is punctuated by his personal hospital patient experiences and those of his immediate family.  Jon owns and operates JP Warner Associates, Inc. and Human Resource Administrators, Inc.  He is also a partner in Warner Benefits, Inc.  The combined businesses provide employee benefits, consulting, insurance brokerage, claims administration, retirement planning and investment services.  Jon became an early member of C12 Philly in October, 2008.

C12:  Are you surprised about what’s going on in the health care coverage arena today?

Warner:  What surprises me is that in the midst of a recession as our country’s historical deficits continue to grow, certain political leaders believe this is the correct time to increase government payments for health care benefits.

C12:  What do you see as real needs in terms of health care reform?

Warner:  I believe the following reforms will achieve everyone’s goal to maintain quality coverage that is affordable:

·          Individual responsibility:  Every patient should be responsible for routine health care expenses equating to 3% - 5% of annual income. This encourages the individual to take an active role in considering treatment options.

·          Pre-existing conditions:  Individuals with pre-existing conditions should be able to purchase insurance coverage assuming they are committed to paying premiums for a minimum period (i.e.  36 months.)

·          Medicare that works:  Medicare Advantage plans should be promoted, in that the insurance companies are now offering better and more cost efficient plan options than traditional Medicare Parts A & B. Government funding of Medicare Advantage does not bloat insurance company profits as represented by our current administration time after time.  Health care costs for senior citizens will increase by eliminating subsidies, since the Medicare Part A deductible is $1,068 and Medicare Part B requires seniors to pay 20% of the cost of physician services with no cap.

·         Tax benefits:  Health insurance premiums should be tax deductible for all Americans up to $5,000 single per year and $17,000 for families.

·         Pay for medical expenses with pre-tax dollars:  The risk and plan design limitations in Flexible Spending Accounts and Health Savings Accounts should be eliminated so all Americans can save money on a pre-tax basis to pay for routine medical expenses.

C12:  Are there ways to achieve some of the goals you mentioned that exist in options already available to us?

Warner:   Government regulation of insurance companies to share in the risk of insuring individuals with pre-existing conditions and malpractice reform are the first steps, followed by allowing insurers to compete in more regions of the country.  The Blue Cross Association geography rules for selling insurance policies should be eliminated to increase regional competition. Finally, fees that providers charge need to re-structured. The elimination of the “Charges Master” should be followed by consistent  pricing by providers to insurers regardless of market share.

C12:  I like the idea of tax-deductible health insurance premiums.  Is that a possibility?

Warner:  It exists today and is fundamentally valid. Similar to the tax deduction for charitable giving, maintaining tax deductibility for workers and expanding it to individuals and seniors promotes a caring type of governmental policy showing respect for the premise that a healthy America maximizes productivity.

C12:  From your experience, what are some of the key considerations for business owners?

Warner:  The need to benchmark your health insurance plans versus the competition is over. Concentrate more on plans that will eliminate redundant and excessive utilization so that premiums will stabilize, thereby allowing higher wages for your workforce.

C12:  Is it realistic to have a plan that benefits both the business owner and the employee?

Warner:  This is happening now for employers embracing upfront deductible plans with HRAs, FSAs and HSAs. Savings equal to 10% - 15% of premiums occur with these plans due to a voluntary reduction in redundant utilization.  These plans include 100% preventative care and wellness benefits, allowing businesses with a healthy workforce to be most productive. 

C12:  Does it make sense to make changes today with reform potentially right around the corner?

Warner:  Why wait when you know that 2 - 4 years will pass before the obligation to comply with healthcare legislative reform commences? The most recent example of this is the Wellstone Mental Health Parity Act that was included in the $787 Billion stimulus bill.

C12:  You’ve been part of the C12 Group almost since it was first available here in the Philadelphia area.  How would you describe it to a CEO/owner who has never heard of it?

Warner:   The group acts as a type of board of advisors for me. I am able to communicate with peers who are running companies and faced with many of the same decisions I face regarding hiring, expansion, contraction, business marketing, sales and overhead. We believe we are all stewards of our businesses that God has called us to lead; our leadership reflects Him.  Jesus Christ is our role model as servant leader. Our meetings each month help to monitor our performance and hold each other accountable to a higher standard.

C12:  C12 meetings in which you meet with like-minded peers run for a full day each month.  Isn’t it tough to take a day each month away from the business?

Warner:  Yes it is, but after a year, the work is still getting done and the time spent at C12 meetings plus the 1-on-1 session with you each month has increased my efficiency in accomplishing my goals.

C12:  Have others noticed anything different since becoming a C12 member?

Warner:  The most important change that has been brought up to me is that I am less stressed than before.  I give credit to C12 for helping me get to the next level of accepting that as long as I try to do the best that I can, seeking God’s will, everything will work out as it should.

C12:  Thank-you for your time and sharing your experience with us.  As we let you go, what can individuals do to become more knowledgeable about their health insurance options?

Warner:  There have been significant legislative changes since 2002 that only 20% of the business marketplace has embraced properly. Every employer should move away from co-pay plans and embrace Health Reimbursement Arrangements and Flexible Spending Accounts. Some should embrace Health Savings Accounts. I discuss these and many other strategies to employ in my book Making $ense of 21^st Century Health Insurance Plans, just published this year.

C12:  How/where could readers learn more about and/or get a copy of your book, Jon?

Warner:  The easiest way is to visit our web site: www.healthinsurancebook.net.