Employers, benefit managers and workers all have a vested interest in reducing coverage costs, and the rising healthcare expenses of recent years have pressured them to seek methods of doing so.
Insurance and benefits experts have examined several of the alternatives being used, Benefits Pro reports. Those employers which have launched wellness initiatives may receive $3 to $6 in value for every $1 spent on their programs, according to some studies, while others suggest companies may save more than 10 percent by pursuing cost-reduction strategies.
Many firms are implementing pretax benefit programs, reducing taxable income for employers and lowering their income tax rates as a result. Employers who use this strategy recommend it highly to others, according to the news source. The potential gain for employees may serve as an added advantage, possibly impacting their attitudes and retention.
A smaller number of firms also suggest having benefit suppliers deal with enrollment systems and management or plan communication. Doing so means the company need not maintain resources for these tasks internally, which may be more efficient for some. The government financial officers survey determined that more than three-quarters of those who used either of these options recommended them to others.
Other methods being used include shifting to a system with more voluntary benefits, where core coverage is separated from other concerns. Some are also improving dependent verification practices to ensure those covered by a policy are eligible to be, which the news source notes is sometimes available to companies as a free service.
Wellness programs, perhaps the most commonly used of these methods, were also among the most strongly recommended in a survey of government financial officers. Analysis of these programs may be hindered slightly by diverse data gathering efforts, with employers tracking different metrics. While many keep records on employee participation, fewer evaluate their satisfaction, for example.
Some say that these initiatives save money, reduce absenteeism, and have other benefits, but that may not hold true for all firms. These programs may involve health risk assessments, fitness programs, coaching, tobacco cessation, flu shots, obesity management and other measures.
Employee benefit consultants can help a firm assess which of these options is best suited to its needs and circumstances, and assist in employee benefit plan administration and implementation. That way, companies can derive the maximum advantage from their offerings and improve efficiency to reduce their expenses.
