You've just been hit with a 31% increase in your company's health insurance premiums. After already spending $10,000 per employee annually, this feels like a gut punch.
What do you do now?
Skyrocketing health insurance costs are not just a number on a balance sheet. They represent real challenges for your business and your employees. When faced with such a dramatic increase, your initial reaction might be to seek alternatives or lean on your insurance agent for guidance. However, you may find that traditional options offer little relief.
The pain goes beyond the financial impact. It's the frustration of feeling powerless in the face of rising costs, the stress of potentially having to pass these increases onto your employees, and the disappointment in a system that seems to offer no real solutions.
You're stuck between a rock and a hard place: absorb the cost increase and hurt your bottom line, OR shift the burden to your employees and risk their financial well-being and job satisfaction.
#1. Question the increase: Demand explanations for the dramatic rise in premiums. Don't accept vague answers or industry-wide trends as justification.
#2. Explore all options: Don't limit yourself to traditional fully-insured plans. Investigate alternatives like self-funding, even if your agent hasn't suggested it.
#3. Seek second opinions: Reach out to other benefits advisors or companies who've faced similar challenges. Fresh perspectives can lead to innovative solutions.
#4. Prioritize employee education: If you choose self-funding, invest time in educating your workforce about healthcare best practices. Informed employees make better healthcare consumers, which can lead to lower overall costs.
#5. Look for guidance: Self-funding doesn't mean you're on your own. Seek partners who can provide ongoing support and guidance throughout the process.
The Payoff?
By taking control of your health insurance strategy, you can:
Reduce costs: In the case study mentioned, our client went from a potential 31% increase to a 3% reduction in premiums in the first year by switching to a self-funded model.
Gain transparency: Self-funding allows you to see exactly where your healthcare dollars are going. With greater insight into your healthcare spend, you're better equipped to manage and predict future costs.
Improve employee satisfaction: With the right education and support, employees can become more engaged in their healthcare choices, leading to better outcomes and higher satisfaction.
Customize your plan: Self-funding allows you to tailor your health benefits to your workforce's specific needs, rather than accepting a one-size-fits-all approach.
Remember, you're not alone in facing these challenges. Many companies of all sizes have successfully navigated the shift to self-funding and reaped significant benefits.
By taking control of your health insurance strategy, you can turn a potential crisis into an opportunity for long-term sustainability.
The healthcare landscape is complex and ever-changing, but you don't have to be at the mercy of annual premium hikes. With the right approach and partners, you can create a health benefits strategy that works for your business and your employees. It's time to stop reacting to increases and start proactively managing your health plan costs.
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