Mitigating Health Care Costs It’s no secret—health care costs in the United States have risen sharply over the past two decades. A study by the Journal of the American Medical Association found that U.S. healthcare spending increased by $1 trillion from 1996 to 2015. Just in 2020 alone, the average premium rose by 4% for both single coverage and family coverage, according to the Kaiser Family Foundation’s (KFF) Employer Health Benefits 2020 Annual Survey. As costs continue to climb at a steady rate each year, employers feel the pressure. That’s why reviewing your employee benefits program regularly is critical to managing costs and ensuring employee retention.
How Can Employers Address These Rising Costs?
Mitigating health care costs has been an issue for employers nationwide for years. That’s why many firms are attacking the root causes of rising costs with sustained, systemic changes. With the growing epidemic of poor health and the uncertain overall impact of health care reform, it’s recommended for employers to regularly review their health care programs. This may include making plan design changes, focusing on employee well-being and education, and implementing additional benefits offerings.
3 Questions to Ask When Reviewing Your Employee Benefits Program
What Do My Employees Want?
Understand your employee’s priorities by asking them what they value most in terms of benefits. It’s also easy to gather information on your employees through surveys, focus groups, or one on one meetings.
How Can I Help Inform Employees?
Communication is key when it comes to the success of your employee benefits program. Consider employee communication tools you already have in place. Younger employees may prefer receiving information via text, while older employees may prefer emails or physical pamphlets. Either way, ensuring clear communication is essential when reviewing employee benefits.
What Is My Budget?
One of the main reasons for employers to regularly review their employee benefits is to save on costs. Review all your expenses and create a budget for your company. Whether you want to offer different benefits or provide additional benefits, reviewing your benefits program will re-engage employees, and improve their retention and productivity.
Alltrust Insurance Can Help Mitigate Your Costs
The world of employee benefits can be challenging to understand and navigate. With employee benefits being one of the largest expenses for many businesses, choosing the best package for your employees is one of the most significant decisions you need to make. At Alltrust Insurance, we are dedicated to helping companies make better decisions about their benefits and finances. Let our team at Alltrust save you money on your employee health plans, and visit our website to sign up for a free employee benefits review today.