Health Care insurance companies are facing a major crisis,as a result of the increase in medical costs which are quickly rising more than the company’s profit margin. Employers are now seeking for strategies that can save money whilst offering same health benefits to employees, spouses and individuals.
Among the Health Care Insurance Strategies are:
Choosing Health care benefits specifically tailored for your industry.
It is important to ensure that benefits offered are appropriate for what your employees want and expect. Preferred private organizations will give selection options of what is being offered, creating an opportunity for selection of insurance covers that will not be used. This will also attract a hefty cost to the company especially if the cover acquired is not used but put to waste.
Consumer-driven Health Care Plan
This is a plan in which individuals have a personal health account, from which they pay their medical expenses directly. It may also be referred to as a defined contribution health plan. In this plan an employer makes a pre-determined amount to the employees health plan. The employer the avails plans to the employees on the options available under the insurance cover. However if employees make a selection that beyond the employers offer then employees will be required to step in and cover the difference.
Reviewing the Whole Benefits Package
It may be a requirement for individuals to make some portion payments towards the benefits they receive such as life vision, dental or even life insurance cover,as a way of offsetting high health care costs. However, if employees are not using some of this benefits it may be prudent to drop them for savings within the health insurance companies.
Reviewing Coverage of Spouses and Dependents
Under the patient protection and affordable care act(ppo), employers are to offer coverage to employees and their dependents. However spouses are not considered to be covered as dependents.Hence there are strategies available to help cut down on spending on insurance cover. 1.Employee- only coverage while raising premium costs for dependents and spouses. This is so while still being mindful of the limit to charge for the same. 2.Offering coverage only for dependents and not spouses. Premiums are charged for spouses who could receive insurance cover from their employer but opt not to take that option.3. Changing the benefit structure to incrementally increase based on the number of dependents covered.i.e “employee plus family”
Considering Wellness Programmes
Wellness programs offer discounts to employees based on their health. In any typical mass population,individuals that do suffer from chronically ill diseases, make up 50% of company’s expense claim.Chronically ill-disease management programmes have the highest potential to reduce insurance premiums. Focusing on such individuals may end up distorting the company’s return on investment(ROI).
In conclusion, any effort geared to saving money in insurance companies should be well communicated among all employees and staff of the company. Wellness programmes will not be of much benefit if employees don’t know about it or even its existence. Creating awareness of such critical information is important to employees.
Read More: Navigating the Health Insurance Marketplace