“Employers expect health plans to have strategies that help them control the rise in costs. Smaller businesses are switching to lower-quality plans, or forcing employees to find their own coverage.
However, there are multiple options for HR managers to consider for the company’s health plan. By strategically finding the areas to trim, both you and your employees will be able to benefit. Following are three major ways that you can cut down on costs without losing quality care.
Implementing Disease Management Programs
Another way to dramatically improve healthcare costs is to implement wellness plans with health screening, prevention and education. An employee can save on medical bills by keeping up with the latest health issues, as well as illnesses that can be prevented early on. Many employers offer programs or reward workers for participating in healthy living, weight loss and smoking cessation. Additionally, you could make use of onsite health clinics for convenient vaccinations for employees.
Controlling Prescription Drug Costs
You can start by using tiered copayments for the prescription drug benefit. This will separate the level of costs for different types of medications. You can also make an effort to promote the use of generic prescriptions for participating employees. Depending on the insurance plan, you may also be able to use a tiered plan across other health benefits such as the coinsurance amounts. Also, you may feel the need to use a dependent eligibility audit to effectively qualify benefits. Since dependents are usually not checked on during the application process, thousands of dollars could be unnecessarily consumed annually.
Shift Costs to the Employee
With the recent recession, numerous HR managers have already shifted a portion of the financial burden to employees. By applying higher deductibles and copayments, you may find a significant decrease in overall health benefits costs.
The decision to conduct smarter healthcare cost management is a major responsibility. Based on the company’s unique size and needs, you will need to dedicate the time and effort in finding the right option. These three cost-cutting methods have been commonly implemented by companies, and may be useful in managing the company’s overall costs.
