In the wake of workforce transformations spurred by the pandemic and the Great Resignation – also known as the Big Quit and the Great Reshuffle, an ongoing economic trend in which employees voluntarily resigned from their jobs en masse in early 2021 in the wake of the COVID-19 pandemic – businesses are leveling up their benefits packages, particularly those pertaining to healthcare. Yet, managing healthcare benefits without eroding your profits can be daunting. So how do you do it?
The Quest for Affordable, Comprehensive Coverage
One thing is clear – employees seek healthcare benefits. This isn’t just a bonus; it’s an expectation. In a post-pandemic world, the demand for health-related benefits is at an all-time high. It’s not just about attracting and retaining talent; it’s about safeguarding the productivity and well-being of your team.
As a business owner, you face a challenging task. You want to offer your employees the best possible healthcare benefits without tipping your financial scales. This requires understanding health insurance premiums, factors that can be controlled, and methods to reduce healthcare costs.
Setting the Premiums: The Inside Story
Group health insurance premiums vary by state, and they’re influenced by factors such as group age, family or individual insurance needs, and tobacco use. Thanks to the Affordable Care Act (ACA), one’s health, medical history, or gender cannot impact their premium.
Harnessing Control Over Healthcare Costs
Even a minor cost-control measure can significantly affect your budget when multiplied by your number of employees. Several aspects within your control affect these costs, and understanding them can help manage your expenditure.
Carriers: Choosing the right insurance carrier for your business is crucial.
Deductibles: Balancing coverage and affordability is key. High-deductible plans often feature lower premiums.
Copay: Opting for a plan with a higher copay amount might help reduce premiums.
Prescriptions: Coverage for prescriptions may be separate from your main health insurance plan or not included at all.
Reducing Healthcare Costs: A Guided Approach
Navigating healthcare costs can be tricky, which is why it’s essential to explore cost-saving options early. Here are a few methods to consider:
Higher Deductibles and HSAs: Shifting to plans with higher deductibles and offering Health Savings Accounts (HSAs) can help stretch dollars.
Employee Education: Empower employees to make informed decisions about their healthcare. Host seminars, provide resources, and encourage proactive healthcare management.
Telehealth: Leverage technology to deliver healthcare more efficiently and affordably.
Wellness Programs: Encourage healthier behaviors with wellness programs that can lower claims and increase productivity.
Work-Life Balance: Cultivate a company culture that supports a healthy work-life balance to prevent burnout and stress.
Healthcare Assistance Programs: Offer supplemental healthcare assistance services to manage long-term healthcare costs.
Deductibles and Co-pays: Consider adjusting current deductibles or employee co-pays. Understanding how your workforce uses health plans can help you choose a plan that suits everyone.
Navigating Your Healthcare Plan Selection
Finding the right insurance plan that suits your business and employees’ needs while fitting into your budget can be overwhelming. Engaging with a dedicated insurance agent like Weinstein Wealth Insurance Solutions can help you explore options and determine the best way to control costs.