3 strategies to cut healthcare costs without cutting benefits

3 strategies to cut healthcare costsAccording to a report done by PwC, medical inflation still outpaces general economic inflation by a 4.5% growth rate. It can be a difficult juggling act for employers to keep health insurance premiums from financially squeezing their business, while also providing a robust benefits package for employees.

There is no single reason healthcare costs keep rising but there are many drivers contributing to the increases. Soaring prices for medical services, unhealthy lifestyles and a lack of transparency concerning prices and quality are all factors that contribute to the spike in premiums.

Employers may have more options for controlling their company’s healthcare costs than they realize, here are 3 strategies your clients can implement to minimize costs without cutting benefits:

  1. Self-fund healthcare costs
  2. Implement a telehealth program
  3. Offer Voluntary Benefits for purchase

By adopting these new healthcare benefits strategies and partnering with FreedomCare, your clients can lower their healthcare costs substantially. Give FreedomCare a call today.

Voluntary Benefits – A lifeline for the American worker

“Voluntary benefits have developed into a lifeline for the American worker, as employees seek to meet their needs for financial protection and benefits not provided as part of a group structure by employers.” - Rich Williams, senior vice president of growth markets at Colonial Life and Accident Insurance Co.

Voluntary Benefits - A lifelineIn a survey done by MetLife, nearly 40 percent of employees say a wide selection of benefits would make them feel more loyal to their employer, and 55.5% are willing to bear more of the cost in order to have a choice that meets their needs.

The top 4 Voluntary benefits for 2015 were:

  1. Life-Insurance
  2. Disability
  3. Dental
  4. Accident

With employee retention gaining importance to maintain the success of businesses, voluntary, employee-paid benefits give employers a way to offer a competitive benefits package without impacting their bottom line.

The problem is, voluntary benefit programs were previously primarily available to employees of large companies. Williams says, “Our research shows the concerns of their employees aren’t that much different than larger firms when it comes to personal finances. Employees in companies of all sizes tend to worry about having enough savings to retire, to cover an emergency or to cover being out of work if they’re injured or sick.”

Smaller employers no longer have to settle for small benefits packages. Here at FreedomCare, we have a large selection at different price ranges to fit an employer’s needs.