How can employers keep employee benefits costs down?
Left unchecked, the typical rate of inflation on a fully insured plan will compound growth at an unsustainable 7% annually. Costs of “designer” drugs, and unhealthy member utilization all help drive increases.Fortunately, captive solutions, reference-based pricing, spousal incentives and most importantly, the “unbundling” of plan designs are upon us, driving down employer healthcare spend.
Shaun Norris, President of Hub International
Associate – Benefits Eagan Insurance Agency
We are limited to just a handful of carriers that provide employer-sponsored health coverage in Louisiana. Therefore, it’s important to choose a broker that understands your business and the benefits package you want. Even when rates continue to rise, a good broker can come up with creative solutions and strategies to meet your budget. If you’re not confident your broker is your trusted advisor I’d advise allowing other agents to evaluate your plan(s) starting three months prior to your renewal.
Market Vice President, Louisiana & South MS Humana
There has been a dramatic increase in the use of telemedicine services, which can remove barriers to accessing primary care services, especially in areas with physician shortages. This is important because those who use a primary care physician regularly have fewer healthcare costs and better outcomes than those who do not, according to the American Academy of Family Physicians. Virtual care improves access and creates the opportunity for employers to provide a higher value health plan to employees at a lower premium cost.
Emmett G. Dupas III
Lead Partner Bienville Capital Group – Northwestern Mutual
Consider the costs associated with retirement plans as former employees carrying balances may have fees still being charged to the company. The largest cost with most plans is the company match. Reviewing it can be beneficial, but remember it could affect discrimination testing. We always encourage companies to work through different match scenarios. In some instances, cutting the match could even lead to a large amount of required company contributions to the plan.