The new year is an opportune time to
Ensuring
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Taking an active role in plan management
Oftentimes, employers are used to working with their long-term health insurance partners and maintaining the same health benefits year-over-year, overlooking opportunities to improve. Instead of looking at health insurance as a commodity, employers should view health plans as an opportunity to work in tandem with quality partners and strategize benefits for all parties involved.
More and more organizations are looking into self-funded options to control costs and ensure high-quality health plans for their employees. Self-funded plans give employers universal access to data that pinpoints high-cost areas, and to partners who can turn this data into intelligence that supports decision-making. Employers can compare prices and quality based on data sharing.
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Many employers have also chosen to work directly with healthcare providers and third-party administrators to develop customizable direct-to-employer (DTE) health plans. Community-based DTE plans allow businesses and their employees to save an average of 10% compared to traditional insurance plans by aligning the interests of local employers and healthcare providers for cost savings across all parties involved.
Another area of focus is managing pharmaceutical benefits by having open conversations with your broker about the acquisition and third-party costs on medications. Currently, 91% of large employers are concerned about pharmacy cost trends. Concentrating on developing an effective pharmacy spend strategy can have a significant impact. Working with the right pharmacy benefit management company and encouraging the use of generic alternatives and rebates helps to maintain lower costs when pharmaceutical expenses rise.
Empowering employees to make smart decisions
Supporting your employees in building healthier, more effective habits leads to a stronger workforce with lower long-term health benefits costs. With many people committing to new lifestyle resolutions in the new year, Q1 is an advantageous time to communicate with employees about making the right decisions to support their overall health, such as scheduling preventative care doctor appointments.
In a recent Kaiser Family Foundation study, 33% of American adults reported they or a family member skipped a recommended medical test or treatment due to cost in the past year. Delaying or foregoing care can lead to health complications that are more costly without early diagnosis. Providing education and access to employees on preventative care allows employers to create savings on reactionary utilization such as emergency room visits, chronic illness management and long-term medication costs.
Steerage is another option for employers looking to improve the health and well-being of their employees, without breaking the bank. Steerage is a method frequently used to guide employees to the right care at the right time. Providing employees with access to out-patient rather than in-patient facilities for routine testing or to high-quality physicians with transparent service costs can not only improve health outcomes, but in turn reduce costs for the employer and patient. Developing successful partnerships with providers and educating employees to make effective decisions requires research and strategizing by the employer or brokers, but can act as a key driver for cost reduction efforts.
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Focusing on healthcare benefit literacy
Companies often concentrate on health benefits education during a specific time of year, typically aligning with open enrollment. A more effective long-term strategy is to meet employees where they are by offering expertise throughout the year in bite-size pieces. Working with your consultant or broker can help in developing messaging that ensures the workforce understands their coverage, ways to save and how to improve their own health outcomes by accessing the right care.
Considering the needs of your workforce while developing a renewed health benefits strategy is crucial. With proper support, access and education, employers can lead their employees on a path to reduced spend and improved long-term health. All of these elements work together to create a stronger team and more competitive workplace for future prospects. When employers take the initiative in prioritizing the well-being of their workforce instead of looking at quality and cost as competing needs, they are able to accomplish their goals while supporting their team.
