3 Tips Every Company can Save Money on Healthcare Costs

1. 3 Tips Every Company can Save Money on Healthcare Costs As the cost of providing healthcare to the employees continues to skyrocket, companies are looking for novice ways to save money. According to the International Foundation of Employee Benefit Plans, around on-third of all the employers have increased employee deductibles, out-of-pocket maximums, or the employees’ share of premiums. Not surprisingly, nearly one in six smaller organizations have gone so far as to reduce their workforce so that fewer employees qualify for the health benefits. But such short-sighted approaches might lead to decreased employee morale and drive away the key talent if employees are dissatisfied with the changes in organizations’ health plan. But fortunately, there are much better alternatives for the employers to take control of the costs without even compromising with the employee relations: Go Green with Self-Insurance The most common misconception about self-insurance is that it makes sense only for big enterprises, but this way of thinking is outmoded and must evolve as a considerable change in the healthcare panorama. Self-insurance allows employers to take literal control of their healthcare cost reduction. Simply put, self- insurance enables employers customize their health plans without settling for a more expensive insurance product that might not even address the individual organization’s requirements.

2. Enact Employee Health Screenings If employers are serious about healthcare cost reduction, they need to look for the major causes of these costs i.e. the employee health. An overwhelming part of healthcare expenditures can be cut down by laying stress towards preventive care before health conditions turn into much more expensive issues. Therefore, with employee health screenings, healthcare cost reduction can be done easily. In order to increase the ROI, employee health screenings must be implemented in conjunction with the employee wellness programs. Come up with Employee Health and Wellness Programs It is very much evident that employers are realizing that they must change their healthcare strategies and take a proactive role in managing the health of their employees’ which exemplifies that increasing employees’ physical activities and managing their weight have become the top priorities for large employers. While health screenings play a significant role in identifying potential health risks, wellness programs will prove to be a catalyst for promoting and ultimately mitigating the risk factors. The three tips mentioned above will give organizations the power to manage their healthcare costs without even cutting their workforce or even reducing the workforce hours. Moreover, they also have additional advantage of having a genuine impact on the employee health and will act as tools for organizations to attract future talent, augment employee productivity, and enhance employee satisfaction.