Recent years have brought more attention not only to the growing concern over health problems like obesity and diabetes, but also to the skyrocketing costs of health insurance. Employers and employees alike are feeling the pain in their wallets, and costs could increase by as much as 30 percent as uninsured individuals obtain healthcare services through the Affordable Care Act.
As a small business owner, you’re probably just as concerned about how much it will cost you to offer health insurance to your employees as they are with what their contribution will be. Fortunately, there are several good strategies to consider that can help keep costs manageable for everyone. For example, consumer-directed health plans, which have higher deductibles and lower premiums, are often offered by employers and paired with health savings accounts (HSAs) that give employees the ability to contribute pre-tax income to the account for use on routine medical expenses.
Flexible spending accounts (FSAs) have also become a popular cost-saving aspect of health insurance in recent years. Using pre-tax income the employee previously set aside to fund an FSA debit card, the money is available for use on co-pays and over-the-counter medication, saving employees from out-of-pocket costs.
Price tiering for out-of-network providers is just one of the cost-saving factors PwC’s Health Research Institute identified in a previous edition of Behind the Numbers. “Rising deductibles mean fewer workers will visit more costly out-of-network providers,” (Grow Smart Biz). Other factors Behind the Numbers identified included cost sharing and an increase in the use of generic drugs.
Additionally, helping employees become healthier and showing them how that helps off-set their health insurance costs is another trend businesses are gravitating toward. Many employee wellness programs focus on changing unhealthy habits and offering incentives for employees that show progress.
Are you looking to keep health insurance costs more manageable for you and your employees? Lamb Financial Group is here to help. Contact us to learn more about our offerings and how we can create a strategy that best meets the needs of you and your employees.