Healthcare costs aren’t going down anytime soon. Strategies like passing the costs onto employees or reducing health care benefits may have an immediate, short-term payoff. However, the long-term price will be extremely costly.
The healthcare problem is complex and requires creativity and innovation to solve. Still, you can make an impact in the short term, as well. There are several strategies that best performing companies are using to reduce their medical spend by $3,548 per employee.
The first key step in making improvements is understanding where the spend is going. It’s important to see regular breakdowns of the health insurance claims made by your employees.
Beyond looking at the raw data or anecdotal information, you can have your broker or data analysts provide reports to help you identify patterns of behaviour in your employees in order to predict and prevent future problems. Many of these behavioural patterns can be curbed through simple education.
Companies that experience lower medical costs are providing insurance training for their employees. There are basic, best practices that many individuals simply aren’t aware of.
You may see these issues show up in the data you find by analysing health care claims among your staff. Here are a few commonplace issues that can be resolved with education.
- Using the emergency room as primary care
- Going directly to specialists rather than first visiting a general practitioner
- Not knowing to ask for generic prescription medication
- Failure to take advantage of telehealth options
- Allowing doctors to run unnecessary tests
These are just a few common mistakes made by patients that can cost your company thousands of dollars per employee. A regular training program can help significantly reduce these costs.
While the digitisation of health care still has a long way to go, thanks to COVID, we have more access to telehealth than ever before.
Making use of telehealth reduces costs associated with office visits. It allows patients with ongoing conditions to be monitored in a more cost-efficient way. And it increases the benefits of preventative care, which also translates to savings.
Focusing on prevention inevitably reduces the need for after-care and the costs associated with it. The most common diseases are “lifestyle illnesses” like obesity, diabetes, high blood pressure, etc. These are all preventable—and in some cases, reversible.
Employers can defray the costs associated with these illnesses both by training employees on how to make use of their health care options (as mentioned above), and through workplace health initiatives.
In fact, many employees are now seeking employers who encourage and promote healthy, active lifestyles. Taking advantage of public events like Nutrition and Hydration Week or the Dubai Fitness Challenge can help your employees feel more engaged, be more productive… and most importantly, get healthier
Start optimising your medical spend now
Though the complexity and expense of healthcare can be overwhelming, there are definite solutions you can implement to defray costs while developing long-term solutions.
By simply empowering your employees to become involved in their health care decisions, you can save your company thousands of dollars per employee each year.
Contact us and find out how your company’s medical spend can be reduced without removing the coverage.