According to the Bureau of Labor Statistics (BLS), average employee healthcare coverage makes up 7.3 percent of total compensation, the largest employee-related expense for U.S. private employers. But with low unemployment rates, the current job market remains very favorable to job seekers. This means benefits are not only one of your biggest expenses, they are also one of the best ways for you to stand out among the crowd, working both to attract new employees and increase retention by improving employee satisfaction. The good news is there are many ways you can customize plan options to keep both your costs and help wanted signs in check.
No matter if you are looking to revamp your existing employee healthcare coverage or start from scratch, there are many factors to consider that can ultimately affect your bottom line. At Live360 Health Plan, our experienced sales associates and licensed broker partners are experts in understanding these complex and expensive decisions. The Live360 team will work hand-in-hand with you to design a comprehensive healthcare plan that mitigates costs, improves health outcomes, and ensures the best patient experience for your employees.
As you begin to plan, it’s very helpful if you have identified your organization’s budget for benefits. It’s also great to know any specific goals you have for your benefits plan. A Live360 sales associate or licensed broker partner will then evaluate all factors to customize plan options for you. This may include:
- The age and overall health of your current employees
- Access/proximity to primary and specialty care
- Tax laws and regulations
- How the plan is structured (HMO, POS, fully insured or self-funded)
Gathering employee feedback of your benefit offerings and utilization data from current plan is also helpful. Look at employee satisfaction surveys and exit interviews to compile this feedback data. Maybe there are some benefits that are underused or not valued by employees. Could these be eliminated to save costs or afford a more desired benefit? Your current carrier should provide a utilization review for you. Knowing how often a particular benefit is used and to what extent may help you determine cost-saving design practices. Analyzing this information can help create a priority list for your new benefits plan.
Another area to look for potential savings is your prescription drug formulary. Does it encourage the use of generic drugs? In 2021, the United States health care system saved billions by utilizing generic drugs, yet they only account for 3% of all healthcare spending. As the Association for Accessible Medicine reports, generics and biosimilars made up 91% of all prescriptions in 2021, but at a fraction of the cost of name brand options, they only accounted for 18.2% of all medicine spending for the year. Imagine the savings if utilization of generics was improved? You can learn more about generic drugs here from the FDA.
As your partner, we’ll help you identify areas to look for savings and improvement to ensure your plan options feature affordable deductibles, access to a quality network of providers, and no ambiguous administration fees from third party vendors. From there, you can compare these with your priority list. Maybe you’ll find that offering vision insurance or a flexible spending account (FSA) will give you a competitive advantage for recruitment? Looking at the whole picture could reveal areas for coverage improvement and/or cost savings.
We know you’re very busy, and that choosing your employee health coverage is both overwhelming but crucial. Don’t rely on a cookie-cutter package. Having someone analyze the fine details of your health benefits package can have a large impact on your business. At Live360 Health Plan, we strive to provide unmatched customer service, and we are committed to working with you through each step of the process. From quoting to open enrollment, we’re here to offer our expertise. And once your coverage begins, you can rely on us to be a resource for both your internal benefits team and your employees. We’re here to help you manage care, answer your questions, and encourage wise use of benefits.
Contact one of our licensed Live360 Health Plan account representatives today if you would like more information. Live360 offers both fully insured HMO and POS plans for groups with as few as two employees and self-funded benefit plans for businesses with 51 or more eligible employees. We can help you determine which option is right for your business. Use this link to visit our website and request a quote. live360healthplan.com/commercial
Sources:
BLS Employer Costs for Employee Compensation – September 2022
The U.S. Generic & Biosimilar Medicines Savings Report September 2022
https://www.fda.gov/drugs/resources-you-drugs/saving-money-prescription-drugs