5 Strategies to Reduce Benefits Costs

For the past two decades, health costs have increased each year, and this year is no exception. In fact, 2023 will likely see a slightly larger increase in costs than in years past.

There are strategies that caan help reduce costs. The attached article offers five strategies that can help with costs, as well as reasons behinad why and how these are areas that should be considered for cost savings.

In summary, these strategies include

  • Control Drug Spending – Educating employees on the price differences between name brand and generic medication can result in significant savings. In addition, considering varying levels of prescription drug coverage may also be an effective option.
  • Encourage Active Benefits Participation – The new Hospital Transparency Rule, which goes into effect on January 1, 2022, will allow individuals to compare healthcare costs between facilities. This allows employees to take an active role in reducing their healthcare costs.
  • Offer Savings Account with Carryovers – In the past, many HSAs and FSAs have taken a “use it or lost it” approach to their plans. There are more offering the option to carry unused portions of these plans to the following year, which can be beneficial to employers and employees alike.
  • Embrace Virtual Health Options – COVID has certainly taught us that virtual solutions can offer high-quality outcomes. This extends to health care in the form of Telehealth services. In addition to saving money, these services can also be more convenient and quicker.
  • Consider Plan Funding Alternatives – Restructuring how your plan is funded is certainly a more drastic option than the others, but it can come with significant savings.

As always, I would love to talk with you to determine which combination of strategies will work best for your company. Please give me a call whenever you are ready to talk!

Here is the link to the article again.