Cost containment strategies can make a big difference to an employer’s bottom line. They don’t have to be difficult to employ, but they are not considered a “one and done” solution. Review the cost containment strategies below that may help any business better optimize their plan, not just businesses in our Boston/New England region.
When to Review Your Cost Containment Strategies
It can be helpful to review your cost containment strategies quarterly against your enrolled population. This can help you determine what may need to be tweaked. Enrollments change. Circumstances and needs change. The demographic of your employees may change. There are a number of factors that can make you want to review your plan. Cost containment strategies can be effective in a number of areas, among them:
- Plan Offerings
- Telemedicine
- Surcharges
- No-Cost Options
Plan Options to Consider
Multiple plan offerings are particularly helpful when an organization has a multi-generational workforce. Millennials and Gen X employees are less concerned about health plans; they are typically low users. And baby boomers typically want plan offerings that give them more choices. In the last few years, High Deductible Health Plans (HDHP) have seen a rise in enrollment. Given the lower premium, employers will often assist by funding a portion of an HSA or HRA for the employee, and still find they are saving on health plans premium costs.
Telemedicine is More Popular than Ever
Over the last few years, more employers offered telemedicine with their plans. Early adopters include younger employees and travelers. The costs are often lower or the same as a co-pay to a preferred provider, and the convenience makes it a big win. The surge in telemedicine usage in the wake of the COVID-19 pandemic has confirmed its value in the marketplace.
Offering a Spousal Surcharge Option
In an effort to keep health plan coverage costs down, many employers will institute a spousal surcharge. The employee would have the option to pay an additional cost to cover a working spouse who is eligible for coverage through his or her employer, but declines coverage and elects to be added to their spouse’s health plan instead.
No Cost Options
Consider work scheduling options that require no cost. Flexible schedules, telecommuting and summer hours have been increasingly popular cost containment strategies. They are no cost options that are highly-valuable benefits once a plan and policy has been established. Another no-cost option that has grown in favor in recent years is providing paid time off for an employee to volunteer to a non-profit of their choice.
Explore Additional Cost Containment Strategies
Before your next benefit renewal is upon you, consider which options would benefit your organization. Please contact us to evaluate your plan; we would be happy to help you establish cost containment strategies that will benefit your bottom line.