Prosperity Benefits has ascribed to the belief of learning from the best in the industry when it comes to benefits program design, management, analysis, and execution. There is a quote, "somebody else has said it better", and crossover exists when it comes to benefits as well. A survey of jumbo employers with 20,000+ employees was done in an attempt to learn what they were doing successfully that allowed their healthcare costs to beat trend increases, maintained lower rates with comparatively richer benefits, and kept focus on quality and engagement. Small employers can adopt some of these same strategies to achieve similar successful results. The cost savings over time by saving a percentage point or two here and there adds up to dramatic differences. Here are some areas of focus:
- Offer a HDHP--When employees become healthcare consumers, they are smarter when their dollars because typically it comes first out of their own pockets in larger amounts versus a traditional copay-style plan. Some employers take a percentage of the premium savings associated with HDHP plans and offer either an HRA or HSA contribution to as to lower the cost burden for the employee and offer another employee benefit at the same time.
- Incorporate Technology--Making benefits more accessible helps employees to be more educated about their options, which can lead to better financial decisions when it comes to purchasing their core and voluntary benefits. Benefits Portals also include wellness plans, healthcare concierges, integration with fitness wearable devices like FitBit and Jawbone, and incorporate Telemedicine. Prosperity Benefits offers Maxwell Health at no cost, helping employers move towards this initiative without increasing costs.
- Surcharges--Employers can choose to charge more for tobacco users and those that wish to not participate in wellness programs. Of course, this can give mixed feeling to employers and employees alike, however, the purpose is to drive healthier lifestyles and behaviors, which is for the ultimate good of employees and the company alike. Healthier workforces means lower frequency claims, resulting in lower spend overall.
- Data Analysis--Knowing your cost drivers is imperative to understanding your population's risk profile and what measures can be taken to mitigate unnecessary spend in the future. Those with co-morbidity risks should be put in touch with a case manager for their conditions. Many carriers offer this in-house, included in the cost of your premium. The employee receives personalized care and work towards better health.
- High-Performance Networks--This is a newer trend in the market and can result in considerably less spend when it comes to claims. High-performance networks boast deep discounts, making the effective cost of services less. Employees pay less, as do employers. Access to these networks typically comes in a self-funded environment and in connection with specific TPA's.
Best practices help to lower your expense burden within your health and welfare plan. If you are tired of spreadsheeting every 12 months with your broker, we can put you on a multi-year path towards a truly industry-leading health and welfare program!