According 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:
- Self-fund healthcare costs
- According to data from the U.S. Department of Health and Human Services, nearly 30% of employers with 100 to 499 employees, self-insure their benefits, and over 80% of employers with 500 or more employees choose to self-insure. FreedomCare’s self-funded plans allow for greater financial security and planning as the employer is billed each month a fixed and unchanging amount per employee per month. After a designated period, the employer may even qualify for a partial return of claims funding if claims were lower than expected. Since these plans are filed as self-funded, they are exempt from most state taxes and many of the federal healthcare law’s health insurance taxes which can also keep costs low.
- Implement a telehealth program
- According to PwC, 48% of U.S. employers made telehealth services available to employees in 2015 and close to a million people now receive care through remote monitoring. This is projected to save billions of dollars across the healthcare system. Unlimited 24/7 access to a leading telehealth provider is included with FreedomCare self-funded plans. This could save your clients thousands of dollars in potential emergency room and urgent care visits. Congress is also supporting telehealth research by dedicating $26 million in funding for telemedicine programs across rural communities.
- Offer Voluntary Benefits for purchase
- Voluntary benefits can help fill the gaps where a benefits plan may fall short. Giving employees the ability to supplement their plan through voluntary offerings can help improve employee retention and save employers valuable dollars.
By adopting these new healthcare benefits strategies and partnering with FreedomCare, your clients can lower their healthcare costs substantially. Give FreedomCare a call today.