The Rising Cost of Healthcare Benefits

As a business owner or HR leader, you’re all too familiar with the challenge of providing quality healthcare benefits to your employees. Year after year, the costs of healthcare premiums, deductibles, and out-of-pocket expenses continue to rise, putting a significant strain on your budget. No matter what strategies you try – raising budgets, switching carriers, shifting costs to employees – the problem persists. It feels like you’re stuck on a never-ending hamster wheel, with no end in sight.

The traditional insurance model puts you at the mercy of the carriers and their networks, leaving you with little control over the actual cost of care. Employees are frustrated with higher deductibles and out-of-pocket costs, while you’re paying more for healthcare that seems to deliver less value. It’s a frustrating situation that many businesses find themselves in.

The Savvy Approach: Taking Control of Healthcare Costs

But what if we told you that some of the smartest companies out there have found a way to provide zero-cost benefits to their employees while actually lowering their own expenses? These businesses have discovered the secret to managing healthcare costs effectively: taking control of the inputs.

Take Label Solutions, for example – a label manufacturer that was struggling to control costs even though they were self-funded. Instead of paying inflated network prices, they took a different approach. They partnered directly with providers for surgical procedures, imaging labs, and more, negotiating contracts that cut the cost of care significantly. This allowed them to eliminate employee cost-sharing for these services entirely, while still reducing their own expenses.

Or consider the case of the Central Crossing Fire District. For years, they struggled in the fully insured market, trying everything from raising budgets to switching carriers to shifting costs. Nothing seemed to work, and they were stuck on the same hamster wheel as so many other businesses. Finally, they decided to take control and restructure their benefits with a strategy aimed at lowering the cost of care, not just shifting costs. The result? Significant savings and the elimination of out-of-pocket costs for employees on frequently used benefits.

These companies are not alone. Businesses across industries, from manufacturing to hospitality to transportation, are discovering the power of managing their healthcare inputs to achieve better outputs. By taking control of where they source care and at what price, they’re able to deliver high-quality benefits to their employees while reducing their own costs.

The Key Principles of Savvy Healthcare Management

So, what are the key principles that these savvy businesses are using to achieve such impressive results? Let’s break it down:

1. Manage Inputs, Not Just Outputs

The traditional insurance model puts the focus on managing outputs – the cost of premiums, deductibles, and out-of-pocket expenses. But the smartest companies are shifting their attention to the inputs, the actual cost of care. By directly contracting with providers for services like surgeries, imaging, and labs, they’re able to eliminate waste and get better results for their employees.

Just like in other industries, when businesses take control of their supply chain and negotiate better rates, they can lower costs without sacrificing quality. In healthcare, this means bypassing the inflated prices and unnecessary middlemen that are often built into the traditional insurance model.

2. Leverage Strategic Partnerships

Savvy businesses are not just relying on their insurance carriers to manage their healthcare costs. Instead, they’re building strategic partnerships with a variety of providers and vendors to create a more efficient and cost-effective healthcare supply chain. This might include:

• Directly contracting with healthcare providers for specific services, such as surgeries, imaging, and lab work
• Partnering with independent pharmacy benefit managers (PBMs) and specialty medication providers to lower drug costs
• Utilizing lower-cost provider networks that are independent of insurance carriers

By taking a more active role in managing these relationships, businesses can ensure they’re getting the best value for their healthcare dollars while providing high-quality benefits to their employees.

3. Steer Employees to High-Quality, Lower-Cost Options

Another key strategy used by savvy businesses is actively guiding their employees to the most cost-effective healthcare options. This might involve:

• Providing transparent pricing information to help employees make informed decisions about their care
• Incentivizing the use of high-quality, lower-cost providers through plan design or financial incentives
• Educating employees on the benefits of seeking care from these providers

By empowering their employees to make smart healthcare choices, businesses can further reduce costs while ensuring their people have access to the care they need.

The Results: Better Benefits at Lower Costs

The businesses that have embraced this savvy approach to healthcare management are reaping the rewards. By taking control of their healthcare inputs and leveraging strategic partnerships, they’re able to deliver better benefits to their employees at a lower cost.

For example, Label Solutions was able to eliminate employee cost-sharing for certain services, while still reducing their own expenses. Central Crossing Fire District achieved significant savings and eliminated out-of-pocket costs for their employees on frequently used benefits. And these are just a few examples of the many companies across industries that are finding success with this approach.

The key is that these businesses are not just accepting the status quo or trying to shift costs onto their employees. Instead, they’re taking a proactive, strategic approach to managing their healthcare supply chain, just like they would with any other critical business input. By controlling costs at the source, they’re able to produce better outcomes without making their employees pay more.

It’s Time to Think Differently About Healthcare

If you’re tired of the same old cycle of rising healthcare costs and frustrated employees, it’s time to think differently about how you manage your health plan. Businesses across industries are proving that it’s possible to lower costs, improve benefits, and make healthcare more affordable for everyone – and you can too.

By taking control of your healthcare inputs, building strategic partnerships, and empowering your employees to make smart choices, you can unlock significant savings and deliver better benefits to your people. It’s a win-win for your business and your employees, and it’s the key to breaking free from the healthcare cost hamster wheel.

So, what are you waiting for? It’s time to take control of your healthcare and start reaping the rewards of a smarter, more strategic approach. Let’s talk and explore how you can implement these principles in your business to achieve better results for your people and your bottom line.

To get started, request your Complimentary Health Risk Scorecard today.

It’s the first step towards a healthier, more sustainable healthcare strategy for your business.

Don’t let your benefits plan hold you back. Contact BeneSmart today for a tailored strategy that scales as fast as you do. Check out our other videos to learn more about transforming your health insurance strategy:

• How to Reduce Health Insurance Costs by 20% or More
• The Hidden Costs of Traditional Health Insurance
• 5 Strategies to Reduce Health Insurance Costs

And be sure to subscribe to our channel at @BeneSmart for more insights on optimizing your health insurance strategy.

Ready to get started? Reach out to us at quotes@benesmartservices.com or contact me directly at rich@benesmartservices.com. Let’s work together to build a benefits plan that can keep up with your growth.

Connect with me on LinkedIn: https://www.linkedin.com/in/richardwestermayer/

To learn more about BeneSmart’s innovative solutions and how they can help your business, check out our YouTube channel, https://www.youtube.com/@BeneSmart

Don’t forget to subscribe @ https://www.youtube.com/@BeneSmart to stay up-to-date on the latest trends and strategies in the world of benefit expense management.