Managing the complexities of employer health insurance costs is often an overwhelming experience. The financial burden on an organization can be hefty, and controlling cost is an understandable concern for many businesses. Many people don’t realize that addressing the rising cost of care implications can be about more than just cutting corners. It’s about reducing spending, improving the benefits you offer employees, increasing employee morale and satisfaction, and so much more.
Recent research from the Kaiser Family Foundation found that employers’ cost of coverage for their workforce went up 4% year over year, and there’s no sign of the trend slowing. Despite the rising costs, employers still must find a way to offer attractive, high-quality, affordable benefits packages that are competitive enough to attract and retain top talent – who all expect excellent benefits today.
Fortunately, with the right knowledge and strategy, navigating this intricate landscape is possible, even with budget constraints and rising costs.
Lost on where to begin? Believe it or not, there are alternatives to traditional employer-sponsored insurance (ESI) options that will help you reduce your cost of care while keeping your employees happy, healthy, and willing to stay with you.
Learn more about the many unexpected benefits of reducing healthcare costs while offering employees great and affordable care.
Why are healthcare costs rising?
The continuously soaring cost of healthcare isn’t just a blip on the radar. It’s an ongoing trend that’s related to several factors, including:
- Inflation: The first factor is how quickly medical inflation outpaces general inflation. Part of the discrepancy stems from new medical technologies and prescription drugs that have hefty price tags.
- Increase in chronic disease: There’s been an upward trajectory in costly chronic diseases like diabetes and heart disease. Their increasing prevalence has led to a higher need for long-term care services – another contributing element to escalating health insurance expenses.
- Prescription drug costs rising: Drug costs have dramatically increased over the years, further exacerbating the overall cost of care.
- Aging population: More than 20% of adults in the U.S. will be 65 or older by 2030. With age comes an increase in chronic condition management that is both more expensive and less effective than treatment for a younger population costs.
- Administrative costs: Add administrative expenses related to health insurance into this mix, and you have quite the recipe for burgeoning employer health insurance costs.
Company health insurance spending
Virtually every company is struggling to combat the rising cost of healthcare today. The goal isn’t just cutting costs but finding innovative ways to manage resources and gain as many benefits as possible. The first step is understanding how claims drive up costs.
How insurance claims drive up cost of coverage for your company
Health insurance costs can skyrocket due to the frequency and size of claims, and any rise in premiums directly impacts your bottom line. Insurance claims symbolize potential risk that insurers must cover. To offset future risk, they’ll adjust their pricing models accordingly, making the coverage you provide to your workforce more expensive.
To keep expenses under control and safeguard business profitability, you want to find ways to reduce health risks and encourage healthier lives.
Ways to minimize cost-driving risks
Reducing risks that drive up the cost of care might seem daunting, but the truth is, it’s easier than you think. The benefits of reducing healthcare costs can be realized by ensuring workers have the following:
- Preventive screenings
- Affordable care
- Accessible and convenient access to care
- Improved provider-patient relationships
- Opportunity to live a healthy and active lifestyle
- Wellness programs that promote self-care
- Advanced Primary Care options as part of a benefits package
What is Advanced Primary Care?
Advanced Primary Care is an innovative model of care that focuses on offering comprehensive care to reduce employer health insurance costs significantly. When you include Advanced Primary Care in your benefits packages, you essentially make health care affordable and accessible for the people who are on your health plan.
Onsite, nearsite, or virtual care options mean access to care is simple and convenient, so people are more invested in taking care of themselves. The return on your investment can significantly reduce your total cost of care since healthier people need less overall (and less expensive) care.
Investing in Advanced Primary Care can effectively enhance patient well-being to curb escalating health expenditures. And there’s more – Advanced Primary Care offers a host of other advantages, from improved morale to increased productivity.
6 unexpected benefits of reducing healthcare costs
Healthcare cost-cutting isn’t just about the bottom line. Services like Everside Health’s Advanced Primary Care can unlock a wealth of surprising benefits.
1. Achieve financial stability
Budgeting becomes less stressful with Advanced Primary Care’s predictable pricing model. The per-member per-month means you can anticipate and reduce your cost of care, so you can put more money into initiatives channeled toward growth or other business needs. Everside partners see substantial year-over-year savings – on average, by year 3 some can save up to 17%, and by year 5, that number can jump to a whopping 31%.
2. Make employees feel valued
Your employees are so much more than just the people who work for you. They’re the backbone of your organization, so it really means something when you take the time and initiative to offer them comprehensive care. As an employer who knows better, you can do better. Advanced Primary Care isn’t just a cost-saving measure – it’s a statement that says you care. When employees feel valued, they’re happy, and happy employees work harder.
3. Minimize risk
You can prevent risk – or at least substantially reduce it – by ensuring preventive care is accessible. This allows people to catch health concerns before they’re out of control, dramatically reducing treatment time and long-term care costs.
4. Boost productivity
A robust health plan with easy access to care via onsite, nearsite, or virtual care options can have an incredibly positive impact on an organization’s productivity.
The equation is simple: When employees have access to affordable and comprehensive services like those provided by Advanced Primary Care, the reduced time, money, and headache means they can perform better at work. And, fewer sick days are taken when employees can conveniently access quality care, ultimately leading to more efficiency in their days.
5. Increase motivation and morale
Morale gets a boost when you offer inclusive Advanced Primary Care options – making for a happier, healthier workforce ready to work when needed.
6. Enhance employee satisfaction and improve retention
When people believe their employer cares about their overall well-being, they’re more likely to be loyal – and loyal employees stick around longer. Making care accessible and affordable conveys the message that you care, loud and clear.
This boosts employee satisfaction, which encourages loyalty and leads to lower turnover rates – another win-win for employers.
Invest in Advanced Primary Care with Everside Health
The increasing expenses in health care are not arbitrary; they’re driven by various factors that can be mitigated with strategic planning.
As you consider all the benefits of reducing healthcare costs in your company, remember that it’s about so much more than just the cost of premiums and claims.
Advanced Primary Care is an innovative approach to managing healthcare spend. Take advantage of Everside Health’s Advanced Primary Care today. Our comprehensive care solution is tailored specifically to help you optimize healthcare expenditures while ensuring top-notch medical attention is available for your teams.
Sources:
https://www.kff.org/health-costs/report/2021-employer-health-benefits-survey/
https://www.census.gov/library/stories/2018/03/graying-america.html