See Healthcare Cost Infographic
We can’t ignore the fact that health care costs are rising and employers are looking for ways to save money. There are many ways to address this issue but which is best for your company? In this blog we discuss ways to save on healthcare costs. We are not advocating any approach, just listing the options, some of which have obvious drawbacks.
Option 1: Stop offering a health benefit to some employees. Employers are increasingly cutting health benefits for part-time employees. There are drawbacks to this approach such as a drop in employee morale. And remember, healthcare costs will still rise for the employees who are insured.
Option 2: Cost shift by requiring employees to pay more of their own costs or charge more for dependent coverage. While this may save money in the short-term, this option will also damage employee morale. A better way to cost shift would be to charge lower premiums to the employees who participate in the wellness program.
Option 3: Self-insure. This is a popular option with large organizations that have more money to create and maintain a fund intended to cover future medical costs instead of purchasing an insurance policy. In fact, 94% of companies with 5,000+ employees use this option to some degree. The evidence indicates savings of 4-7% per year.
Option 4: Consumer-directed (High deductable) health plans. These plans are becoming more popular because they encourage employees to be careful their healthcare spending. Related to this, onsite clinics and disease management have been popular options but the evidence shows that neither reduces healthcare costs.
Option 5: A well-designed worksite wellness program. Such programs have been documented to reduce healthcare cost trend, improve employee health, prevent expensive chronic diseases, reduce absenteeism, and improve employee morale.
WellSteps CEO Dr. Steven Aldana spoke about all of this in more depth in our latest webinar. You can watch the playback of the webinar HERE.
Normal.dotm 0 0 1 294 1678 WellSteps 13 3 2060 12.00 false 18 pt 18 pt 0 0 false false false
The WellSteps Team