How to Lower Employee Benefits Costs

A Popular Question

There is a constant problem that arises among employers who decide to offer employee benefits and that is: How do they Lower Employee Benefits Costs? Most small business owners and employees are not aware of the possible benefits certain carriers can offer their business.

Employess Benefits Cost Containment

A frequent question most business owners ask when shopping for benefits is “does it have great coverage?” Specifically, when looking for a great coverage, they main consideration is emergency care which consists of only 2% of the entire benefit package. What about the remaining 98%? When considering employee benefits, employees and employers need to consider the more common routine care such as screenings, diagnostics tests, lab work, doctor visits, physical therapy, and schedule surgeries. They need to compare the entire plan and match it up against other carriers.

Other benefits that need to be considered are membership benefits that certain carriers are willing to offer you if you sign up with them. A great example is Blue Shield which will give you multiple discount for various organizations for being part of their network. These added benefits are instrumental in considering which carrier gives best value at lowest cost.

Communicating Lower Employee Benefits Costs to your employees is crucial in increasing participation rate among your workforce. The channels of communication available to you – emails, employee meetings and events, break room flyers, posters, contests, and pay stub reminders – can effectively help you show your employees the value your company can offer them.

Alligning benefits to your Core Business Values

Final point you need to consider when shopping for a benefit plan is your core business values. You need to determine which values does your business possess that you’d want to bring forth through your employee benefits plan. In addition, which insurance carrier would you like to associate with that can highlight that stability within your organizations.

Final Thought

We always recommend that before shopping for an employee benefits plan, you highlight the key factors that your looking to have, the key values your looking to highlight about your business, and the benefits your willing to compromise on (for example Medication Brand Name, Network Size etc.). That’s right, have a list of benefits your willing to sacrifice will help you lower medical costs in the long run. Please contact us or your benefits broker to discuss further how you can implement benefits that are affordable and your employees care about.

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