If you’re ready to start containing your health care costs, consider the following list of common mitigation strategies. Note, not all of the methods listed will be suitable for you and your organization. Please contact Distefano Insurance Services, Inc. to talk through your organization’s needs and develop a tailored cost-containment strategy that is right for you.
Plan design changes—Depending on your organization’s size, assets and cash flow, and historic claims, making a plan design change from a fully insured plan to a self-insured or level-funded plan may help you contain your health care costs.
Cost-sharing methods—Implementing increased cost-sharing initiatives (e.g., increasing deductibles and out-of-pocket maximums, out-of-network provider employee costs, and brand-name prescription costs) can help you shift some of your rising costs to employees. Other common cost-sharing methods include increased copays and coinsurance amounts.
Prescription drug education—The increased cost of prescription drugs contributes to the overall rising costs of health care, but ensuring your employees have the correct medications is important for their health and your bottom line.With drug pricesincreasing at a faster rate than other health spending costs, now is the time for employers to review their drug cost-saving options.
Educate employees on generic medications versus brand-name medications and encourage employees to choose generic versions whenever possible.
Increase cost-sharing requirements on prescription drugs.
Offer mail-order prescription options.
Telemedicine options—Although it is not the same as sitting in a doctor’s office, a telemedicine visit with a doctor can prove beneficial towarding off illness or disease, stabilizing a condition until a patient is able to reach a hospital or monitoring a patient at home. Telemedicine is not a complete replacement for face-to-face health care, but it can be a tremendously helpful supplement and even a temporary substitute for traditional medical care. Employees save money for routine and specialist care because they don’t have to pay travel expenses for distant doctors and don’t have to take time off work to travel and sit in a waiting room.
Employee benefits and health and wellness education—Low health literacy, as well as poor employee wellness, is a considerable cost-driver. The Centers for Disease Control and Prevention states that treating chronic conditions, which can often be prevented or lessened through a healthy lifestyle, accounts for 90% of the nation’s total health care costs. Promoting health and wellness at your organization may help you contain costs. Moreover, providing ample educational resources to employees that explain how to use their benefits and make wise health care decisions can help you keep your costs low.