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One of the
biggest challenges in business is attracting and retaining good
employees. An excellent benefits package may be a key factor in
their decision. So, recognizing that we are 2 years into a predicted
5-year period of double-digit healthcare premium increases, how
do you control your own costs without losing your appeal?
Modifying
your plan design can provide solutions to manage
costs without passing those costs on to your employees. Reconfiguring
your health coverage to include higher office visit and hospital
copays, alternate prescription plans, or increasing out-of-network
deductibles can help lower the overall cost for coverage.
A tiered
benefit plan can reward the employee who chooses
to use only in-network doctors and services by
enrolling them in a lower premium plan and offering a lower employee
contribution. The employee who wants to use both in-network
and out-of-network services becomes responsible for the extra
cost of a higher premium plan. This is a method of identifying
your costs and involving the employee.
Defined-contribution,
or fixed-cost plans, are a significant area of employer
cost control. An employer provides a fixed contribution or percentage
of the cost for health benefits, and the additional cost is passed
to the employee. For example, an employer may set an annual contribution
of $2000 per employee or pay 50% of employees' premium. Some employers
may even base their level of contribution on the years of service
for each employee.
It is important
to make your employees aware of the real cost of health care by
engaging them in the development of their own benefits package,
and rewarding them for using more cost effective solutions. It
is the belief at Shepard Insurance Group that employees should
be educated in the long-term costs of their healthcare.
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