It’s an indisputable fact that health care costs are a huge expense in this country. In fact, last year Americans spent over $3.5 trillion on health care. That’s more than the total GDPs of some countries!
As the cost of providing healthcare to employees continues to rise, many small businesses and large companies are exploring ways to lower their costs while continuing to provide quality care to their employees. Employers searching for ways to reduce health care spending without shifting the cost to their employees have several options. Here are a few alternatives to consider:
- Self-insure. As many as 50 million employees and their dependents receive benefits through health plans covered by their employers. Instead of adhering to the plans, costs, and requirements of traditional insurance carriers, self-insurance allows business owners to create and manage their own insurance plans.
- Invest in preventive care. Preventive care is more cost-effective than urgent care. Investing in wellness and screening programs such as flu shots, smoking-cessation kits, and gym membership reimbursement, could significantly lower health care costs.
- Empower employees to make better benefits decisions. Employees empowered by their employers to become more active and informed in their healthcare decisions have higher satisfaction and stronger job performance. For employers, that translates into savings in retention and recruiting costs.
A quality health insurance plan is an integral component of any successful employee benefits program. And while the cost of healthcare has exploded, so have cost-containment strategies. Many employers have already developed their own best practices. If your organization is still trying to determine the best health care and benefit strategy to allow your business to compete and succeed, Boris Benic and Associates can help you design and manage a vision for the future.