If you are not supporting the education and awareness of preventative care to your employees, you are contributing to the increase of your annual premiums!

Year after year, employers face the challenge of rising healthcare costs, often feeling like these expenses are spiraling out of control. According to the International Foundation of Employee Benefit Plans, this year will be especially disconcerting, as healthcare costs are expected to increase by 7%, marking the second consecutive year of significant hikes beyond the average 4 to 5% annual increases. As you know, simply throwing money at the problem isn’t a viable solution, you must take a proactive role in tackling the factors driving your healthcare spending. Here are some strategies that can make a difference in 2024. 

1. Embrace Preventive Care Programs

Chronic conditions such as cancer, heart disease, and diabetes are the leading drivers of healthcare costs. These conditions can be prevented or managed more effectively with early intervention. By investing in comprehensive preventive care programs, employers can help reduce the incidence and severity of these chronic conditions.

Action Steps:

* Implement regular health screenings to help catch conditions early when they're more manageable and less costly to treat.

* Encourage employees to participate in wellness programs and stay up-to-date with vaccinations can prevent illnesses and promote overall health.

* Offer resources such as gym memberships, healthy eating workshops, and fitness challenges to foster a healthier workforce.

2. Utilize Data Analytics to Identify Cost Drivers

Leveraging data analytics can provide valuable insights into what’s driving your healthcare costs and help you make informed decisions about where to focus your cost-reduction efforts.

Action Steps:

* Review health claims data to highlight trends and pinpoint areas where costs are rising.

* Conduct employee surveys to identify key health needs and concerns so you can tailor benefits programs to address the most pressing issues.

* Compare your data with industry benchmarks can reveal areas for improvement and opportunities for cost savings.

3. Offer Telemedicine Services

Telemedicine has become increasingly popular, offering a cost-effective and convenient way for employees to access healthcare.

39% of employers are offering less expensive alternatives to traditional in-person care (namely telehealth access) to drive cost savings

Action Steps:

* Ensure that telemedicine services are included as part of your health benefits.

* Educate employees about the availability and benefits of telemedicine to encourage its use.

* Partner with reputable telemedicine providers to ensure high-quality care.

4. Implement Value-Based Insurance Design (VBID)

Value-Based Insurance Design (VBID) focuses on providing high-value healthcare services and medications, which can lead to better health outcomes and lower costs.

Action Steps:

* Lower or eliminate co-pays for essential services and medications to encourage their use and prevent costly complications.

* Steer employees towards providers who deliver high-quality, cost-effective care can reduce overall expenses.

* Continuously evaluate the effectiveness of your VBID initiatives and make adjustments as needed.

5. Enhance Employee Assistance Programs (EAPs)

Employee Assistance Programs (EAPs) provide support for a range of personal issues, including mental health, which can significantly impact overall health and productivity.

40% of employees say medical debt is their number one source of stress.

Action Steps:

* Expand EAP offerings to include services such as counseling, financial planning, and stress management to support employees' overall well-being.

* Regularly remind employees about the availability of EAP services and encourage their use.

* Track usage and outcomes of EAP services to assess their effectiveness and make necessary improvements.

6. Encourage Healthy Lifestyle Choices

Promoting a culture of health within the workplace can lead to long-term cost savings by reducing the prevalence of chronic conditions and improving overall employee health.

Action Steps:

* Offer healthy food options in the cafeteria, provide standing desks, and encourage regular breaks for physical activity.

* Organize company-wide health challenges, such as step competitions or weight loss challenges, to motivate employees.

* Offer rewards for employees who engage in healthy behaviors, such as participating in wellness programs or achieving fitness goals.

Conclusion

Yes, rising healthcare costs are a significant concern, but you can manage and reduce these expenses. By focusing on preventive care, leveraging data analytics, utilizing telemedicine, implementing VBID, enhancing EAPs, and encouraging healthy lifestyles, you can lower healthcare spend while also fostering a healthier, more productive workforce. In fact, Arizent research found that employers who incentivized preventative care were 21% more likely to say that the health of their workforce has improved in recent years. This emphasizes how crucial preventative care can be in an employer's overall wellness strategy. 

Let's talk if your benefits broker is not actively supporting employee benefits education. As healthcare consultants, we help our clients gain control of their healthcare spending.

To get insights on how to start the conversation with your broker, download The Top Power Questions to Ask Your Broker & Insurance Company.