One of the major issues for most Americans is the high cost of healthcare, even for people who are insured. It’s also become a cause of concern for employers to provide adequate healthcare to attract top talent. Studies show that offering incentives is an excellent way to create an upbeat workplace atmosphere.
Here are five smart ways for businesses to reduce healthcare costs.
1. Design Suitable Benefits Plan
One way employers can create savings in healthcare costs is to choose benefits packages that share costs with employees. A high percentage of employees in the United States are enrolled in insurance plans with annual deductibles. These deductibles have grown over 60% in the past decade. Investing in health savings account (HSA) plans has further helped employers cut insurance costs.
An HSA plan lets employers allocate funds on a pre-tax basis to pay for medical costs, including deductibles, copayments, and coinsurance. However, they are not used for paying premiums.
2. Implement Wellness Programs
More than 50% of employers today include wellness programs in their health insurance packages. Wellness programs can help employees overcome excess weight, addiction, stress, and physical fitness problems.
The three key reasons why companies include these programs are that
- they empower employees through education
- they encourage employees to set achievable goals
- they promote a health-conscious workplace culture
According to Rand Corporation, these programs generate an ROI of $1.50 for every dollar spent on wellness.
3. Ensure Timely Intervention for Chronic Diseases
Some wellness programs are designed to provide chronic disease management through intervention. These programs can generate as much as $3.80 savings for every dollar spent on wellness. Employees can start with a personal health assessment to determine their wellness needs.
4. Partner with Nearby Primary Care Clinics
Another way for employers to save money on healthcare plans is to work with an on-site or near-site primary care clinic. Access to primary care allows employees to avoid long waits for medical appointments. It also gives employees easy access to same-day prescriptions for generic drugs. Direct primary care can be a viable solution for small to mid-sized businesses.
5. Incentives
Most employers now realize that the health of workers directly affects workplace morale and productivity. As a result, they are implementing incentives to reward positive health-related choices.
For instance, in Houston, employees are required to complete three steps to avoid a $25 monthly payroll surcharge. First, they have to fill out a health assessment survey and take a biometric test. Next, they meet with a health coach for advice, such as joining a weight reduction program.
These are a few ways in which you can reduce the healthcare costs for your business. At Gant Insurance Agency, we understand the importance of securing all of your company’s assets. Contact us today to learn more!
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