10 Ways to Control the Cost of Employee Benefits

10 Ways to Control the Cost of Employee Benefits

January 27, 2021

Controlling employee health care costs has become a leading avenue for businesses to improve their bottom line, but it remains a struggle. The average premium for family coverage has increased 22% over the last five years and 55% over the last ten years, according to the Kaiser Family Foundation’s 2020 Employers Health Benefits Survey.

According to the Society of Human Resource Management, large employers are expecting an average increase of 5.3% in employees' health care benefits cost this year.

“Whether you seek an Employee Benefit plan that’s fully-insured, self-funded, or a hybrid, there are a number of ways you can reduce cost-creep through a number of innovative strategies,”

- Spencer Olson, BHS Partner and Benefits Specialist
  1. Pharmacy Savings Program - Our team can audit and monitor your pharmacy expenses and offer coalition pricing and manufacturer coupons/cost-savings plans.
  2. Medical/RX Tourism - Many major health insurers are experimenting with cross-border plans, contracting with foreign providers for their high-deductible, low premium plans.
  3. Stop Loss/Pharmacy Carve-Out - Save on Stop Loss premiums by carving out pharmacy, which can make up 13-17 percent of costs. The leverage can drive down either the premium or the deductible.
  4. Health Benefit Risk Pools Merged with Other Groups - Learn ways to reduce premiums and control costs through purchasing alliances, even if you’re a small business. We’ll help you explore your options.
  5. High-Performance Provider Networks - We work with high-performance provider networks to help keep premiums in check. Ask about groups such as Priority’s West Michigan Network or Metro Health’s Metro Care. We’ll help you find the right fit.
  6. Human Resource Consulting and Resources - Save time and money by having access to resources for guidance on employee relations, ACA/ERISA/FMLA, legislative updates, policies and procedures, best practices, and more. We offer cost-effective Human Resource tools and guidance, including online solutions such as ThinkHR.
  7. On-Site Nurses and Concierge Services - Our benefits Specialists can help design an Employee Benefits plan that incorporates on-site nurses and concierge services to proactively reduce your claim risk. One example is our MetroCare partnership with Metro Health & the University of Michigan.
  8. Diabetic Compliance Programs - BHS has helped many employers design plans that leverage Diabetic Compliance to proactively reduce claims costs and improve health outcomes.
  9. Employee Medical Financial Assistance - BHS offers programs such as Healthbridge that help employees manage their medical bills and allows them to consolidate their copays into an easy payment plan.
  10. On-boarding/Employee Benefit Administration - Offerings include an online enrollment system and platform that handles both enrollment and administration

Our benefits specialists analyze the latest trends to identify cost drivers and design the right benefits package for your company. BHS gives you the technology and the tools to help engage your employees to be smarter health care consumers, fostering improved health outcomes and increased productivity.