In an effort to reduce benefit costs, many employers are of course implementing cost-containment strategies.  Below are some examples:

–    Rewards For Good Health

  • Offer financial incentives to employees who have healthy habits and lifestyles or those who participate in wellness programs at work. Penalize workers with higher premiums for engaging in unhealthy activities, such as smoking.
  • Offer discounted rates for those who participate in wellness programs and maintain good health.

–    Preventive Care Benefits

  • Offer full coverage for employees who seek preventive medical care and preventative drugs without a deductible, including vaccinations, exams and screenings for diseases such as breast, colon and cervical cancer, blood pressure and cholesterol. Starting on the first plan year on or after Sept. 23, 2010, certain plans are required to cover preventive care services at no cost-sharing to the employee under PPACA.

–    On-site Health Centers

  • Offer on-site health centers and staff health coaches to provide advice on personal health needs.

–    Catering to Individualized Needs

  • Offer voluntary benefit options that meet personal and family needs such as homeowners, automobile and group life insurance. Also, offer discounts on vision, dental, massage therapy, chiropractic care, health club memberships and weight-control programs.

–    Communication Tools

  • Provide online tools for employees on health education and estimation on their health care expenses.

–    Health Care Savings Accounts (HSAs)

  • Offer HSAs with an HDHP as a way to promote consumerism and reduce costs.

–    Analyze Dependent Coverage

  • Pay close attention to the spouses and dependents that employees enroll for benefits. Some companies require employees to pay higher premiums if their spouse can obtain health coverage through his/her employer. Conduct an eligibility audit to prove that dependents are considered legal dependents and remove ineligible dependents from the plan.

–    Align Your Goals

  • Weave business goals with health goals and devise a way for individuals or departments to lose weight, start exercising and/or stop engaging in unhealthy habits.
  • Use marketing techniques that will motivate employees to take action.

–    Co-insurance

  • Instead of having employees pay a copayment of $10 or $15, require them to pay a percentage of their health care expenses (known as coinsurance). This may make your employees more aware of their health care expenses.

–    Encourage the Use of Generic Drugs

  • Suggest that employees use the generic form of their prescriptions (if available) to save both your organization and the employee money.