5 Ways to Reduce Health Benefits Costs in 2021
The costs of health benefits have been increasing by more than 50% since the last decade - and the upward trend will continue in 2021 as the economic instability over COVID-19 will not slow things down. The numerous business closures and an exhausted workforce has already tightened the budget for most employers making it critical to think about reducing health costs during this time.
Here are 5 strategies that can help you determine the most cost-effective benefits:
1. Dissect Your Health Costs
You don’t overpay for the materials, products or services you use for your business; you try to get the best deal. And healthcare should be no different. Look into the plan details, including premium costs and individual employee expenditures or claims. By knowing exactly what you’re paying for, you can ensure you’re getting the best bang for your buck with minimal wastage.
2. Embrace Technology
We live in a tech savvy era which businesses have adapted to, including the healthcare industry. With the introduction of telemedicine, virtual visits with doctors or therapists, and countless health apps, your team can take charge of their health care minus the hassle and added cost of in-person consultations.
3. Consider Alternative Plan Options
Your company is unique so you will need a unique health plan that meets the needs of your employees without running you out of business. With plans that leave most of the decision-making power in the hands of the employees, you can consider offering mechanisms like HSAs, FSAs and HRAs to share the costs without compromising on health care.
4. Require Active Enrollment
Mandating enrollment in and reviewing of health benefit plans and options every year will help increase health literacy among your team. It will help them evaluate what benefits they’re paying for but perhaps not using, motivating them to take their health more seriously. It’ll also show your team you’re honest and care about more than just results.
5. Change the Funding Structure
This one’s a drastic measure, but restructuring your insurance model is one way to cut your costs. Many employers choose self-funding, level-funding, or reference-based pricing models instead of the standard full insured model where you pay a set premium to an insurance provider. Granted, the former takes more effort and resources, but having the option to pay what you can afford does exist should the need arise.
Whatever you decide to do, we’re here to help - even if none of the above works for your business. Just let us know how we can help you by visiting NY Small Health today.