Rising health care and premium costs make it necessary for employers to examine a variety of different cost-saving measures by negotiating health care expenses like any other business expense. Quality of health care is no longer the only factor to be considered. Companies today are seeking employee health plan packages that will give them the most for their dollars at lower premium costs rather than paying more money for fewer services. However, it takes some careful strategizing on the part of a company to succeed in this initiative on behalf of its employees.
Instructions
1. Monitor the performance of the health care provider. Assess how quickly the insurer resolves problems, in addition to how well the vendor puts its guarantees into action. In some cases, it may be necessary for an employer to cancel a contract with a health care vendor that does not live up to its promises. An employer can also negotiate with the vendor to hold back a percentage of the vendor's overall premium until assessing the vendor's performance at the end of the contract year. If the vendor does not live up to expectations, the employer would then receive a discount on the premium.
2. Assist employees in making practical choices about their health care benefits. When changing to a different vendor, bargain for additional services at the vendor's expense to help educate employees about the benefits offered by the new plan. An employer might also ask the insurer to exchange any services offered by the plan that a company's employees might not be fully utilizing. Making other programs available to employees might actually prove effective in reducing wasted dollars.
3. Offer employee-sponsored wellness programs that promote healthy lifestyle behaviors such as weight loss and smoking cessation. Recent research shows that more employers are making employees accountable for their health by giving them better health-management tools in an attempt to shift some of the cost. A company might consider piloting new wellness programs for the health care vendor in exchange for discounted premium rates.
4. Encourage employees to seek regular preventive medical care. Early detection leads to quicker treatment before a medical condition becomes more serious and costs everyone more money.
5. Provide employees access to online informational health resources and 24-hour toll-free nurse hotlines. Registered nurses are available 7 days per week to answer member questions and offer advice related to nonmedical emergencies. Members of the health plan offering this service will be requested to provide a group and member I.D. number. After talking to members about their symptoms, nurses may explain treat the condition at home or recommend that the person schedule an appointment with his physician. Nurse hotlines can often save the employer and the health care consumer time and money.
6. Implement mail-order prescription drug programs in an effort to control the rising costs of prescription medications. Promoting the use of generic drugs rather than name-brand medications is another way to help cut the cost of prescription drugs. In addition, some employers are saving money by contracting with pharmacy benefits managers who are able to offer volume discounts on dispensing drugs.
