Due to COVID-19 and the current state of economic uncertainty, employers may be facing limited budgets. Seeking new ways to structure employee benefit plans could put your organization in a better financial position heading into the new year.
To reduce healthcare spending, employers can consider several benefit design strategies opposed to shifting costs to employees through consumer-driven insurance plans. Below are five cost-reduction strategies employers can consider for 2021:
- Dig into Healthcare Costs — Employers should investigate every healthcare figure they can, from overall premium costs to individual employee expenditures. Understanding where money is distributed can help cost-cutting efforts.
- Embrace Technology — Virtual care, also known as telemedicine, is on the rise in healthcare consumerism. Educating employees on the ways they can take charge and access their healthcare from home can put money back in their pockets.
- Consider Alternative Plan Options — Offering health saving accounts (HSAs), flexible spending accounts (FSAs) or health reimbursement accounts (HRAs) to employees can help shift costs without compromising healthcare quality.
- Require Active Enrollment — Active enrollment guarantees that employees will take the opportunity to review all their benefit options each year opposed to passively renewing in the same coverage. Ultimately, giving them the ability to reevaluate what they are paying for and make changes to better meet their needs.
- Change the Funding Structure — Whether you implement a fully-insured model or use a self-funded, level-funded, or referenced-based pricing model, each funding structure offers unique nuances that can give you the most bang for your buck in today’s market.
No matter your budget, it is important to communicate with your employees about the healthcare benefits you offer to ensure you are meeting their needs; as well as maintaining the financial integrity of your organization. Consult with your broker or carrier about what makes the most sense from a cost perspective today!
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