Company-provided healthcare continues to be one of the most important responsibilities employers have to deal with in terms of cost and compliance. In 2016, some of the Affordable Care Act's more lenient measures disappeared. As a result, businesses are going to be held more fully responsible for adherence to the law. For example, transition relief will no longer be available to employers that fell short of the requirements. This year, those organizations with 50 or more workers must offer health insurance to at least 95 percent of their workforce – as compared to 70 percent in 2015.
With that said, many businesses will face increased expenses associated with this benefit. It's critical for company leaders to take certain steps to better control their healthcare costs. Let's take a look at how organizations can do just that:
Companies should consider split-fill prescription policies to cut pharmaceutical costs.Consider stricter pharmaceutical rules
Since prescriptions are fueling the increase in healthcare costs, employers have to pay close attention to their benefits program's approach to payment for medications. According to Willis Towers Watson, pharmacy accounts for 20 percent of employer-sponosored benefits costs.
Organizations have options to consider to cut down on pharmaceutical contributions. Employers could choose to cover only generic medications, which could save up to 80 percent on the cost of the prescription, the Generic Pharmaceutical Association found. Unfortunately, it may be more difficult to take this action for drugs for serious conditions – like cancer and multiple sclerosis, among others. To reduce medication costs associated with these kinds of illnesses, companies could follow the University of Minnesota's lead. At the institution, employees have access to a two-week supply of the prescription at first. If a nurse at the university's pharmacy partner can confirm the drugs are working, people can then get another two-week supply. This split-fill measure helps avoid payment for medications that are unused due to unforeseen side effects and eventual cease of use, according to The Wall Street Journal.
"Working with a benefits partner like Triton Benefits can help organizations reduce healthcare costs."
Find a different carrier
Over time, businesses have taken a number of different actions to attempt to reduce their healthcare expenses. From dropping financial support to increasing employees' contributions via copays and premium contributions, the changes can have negative effects on workplace satisfaction and overall health. As a result, companies may see a decline in productivity and a rise in absenteeism, according to Monster.
Yet, organizations of various sizes are finding it difficult to take on so much of the cost for this insurance benefit. Luckily, they don't have to face the challenge alone. Employers have the ability to work with a group health broker. This relationship can yield strong results, as the service provider can gather and compare estimates from several carriers as well as design plans specifically for an organization's needs. With this partnership, leaders can implement a health plan that still meets federal criteria while taking advantage of cost-saving opportunities. It's important for executives to take their time searching for the best option for their business and its employees. Jumping at the first plan just because it is the least expensive could backfire quickly. Triton Benefits not only offers consulting services for companies and their HR teams but acts as an experienced broker for organizations searching for the most cost-efficient and compliant coverage for their workplace.
Don't slack on wellness
Employees want to know their health is a priority to their company, so businesses must introduce certain strategies to improve well-being during the course of people's careers. Wellness programs are a strong option, as they often allow workers to decide how to use them. Companies can provide a specific monetary allowance people can use to cover the cost of exercise classes, gym memberships and more. Other wellness actions include implementing an online tool that counts calories or a health contest with prizes, according to Forbes.
Since workers will have the ability to take better care of themselves on the company's dime, organizations may witness a boost in employee morale and reduced employee absences due to illness.
Businesses have their fair share of expenses to monitor on a regular basis. With healthcare compliance becoming increasingly important to avoid costly penalties, leaders may see more expensive benefits costs. Managing the price of healthcare is a crucial task organizations must maintain. By implementing stricter pharmaceutical rules, working with a benefits broker and compliance partner – like Triton Benefits – and introducing wellness initiatives, companies can ensure workplaces result in improved employee satisfaction and overall health.