Assume the role of a consultant advising a benefits manager for a local telecommunications organization. The company is self-funded and has 25,000 employees, dependents, and retirees eligible for health benefits. The employees are currently enrolled in a managed Preferred Provider Organization (PPO) plan administered by a commercial insurer. The employers health plan costs increased by 15 percent over the prior year. Therefore, leaders are considering more cost-effective options.

Identify at least three challenges that health care organizations will need to monitor in the future. Next, compare the three options and make a recommendation based on your comparisons.