When it comes to employee benefits, there certainly is no one size fits all approach. This is even more evident when exploring the options available to help you manage the cost of your plan. As an employer, we understand that your benefits plan is a fine balance between value to your employees and cost control to your bottom line. Despite what you may have heard, deductibles and per visit reimbursement caps aren’t the only (or necessarily even the best) way to manage costs. Here are some alternative options for your consideration:
As a great alternative to deductibles, co-insurance functions as a percentage of the benefit covered vs. a fixed amount like you would see in a deductible. This still allows you to manage costs without a hard and fast requirement or threshold that must be met before coverage kicks in. It’s also a great inflation-proof alternative. When the cost of a service may rise, a $25 deductible will always be a $25 deductible, but the co-insurance will absorb a percentage of the added costs.
Capping Major Risk
Something we’re helping employers with all the time is managing the risk for claims they wouldn’t be able to afford by potentially redirecting high-cost drug claims to the provincial health plan is one option many small businesses choose. Capping major risks like drug plans is a great way to protect the affordability and longevity of your employee benefits plan. Plus, depending on your provider, it should also improve your stop loss premium.
Finding ways to integrate health and wellness support into your benefits plan will often have a positive impact on lowering the overall costs. How is this achieved? Driving a healthier workforce ultimately leads to less sickness-related claims. Plus, it makes your employees’ quality of life better too which is the real win in our books. Absenteeism needs to be managed, but so does presenteeism. Offering mental health & wellness programs can help to minimize the instances where employees arrive at work but spend their days distracted by life’s challenges.
Health Spending Accounts
This solution is very cost-controlled and is a great addition to any plan. Especially if you’re adding it at the same time that you plan to reduce or eliminate other, more expensive, coverages. Plus, your employees will love it as a small addition to their plan since it gives them some flexibility and choice based on their individual needs.