Mention cost-cutting when it comes to healthcare, and employees start shaking in their boots. What if I told you there were methods to reduce your employer spending on healthcare without compromising employee satisfaction or well-being? Believe it or not, it’s true. Here are 5 “better” ways to contain the cost of healthcare for your employees.
1. Choose “In Network” Providers Wisely
There are often many options available for employers considering partnerships for healthcare. Most options will be quick to cite the number of doctors they have or their quality scores as reasons why you should keep them in-network. One quick trick? Try “secret shopping” to get an appointment with a provider group you’re considering. If you have trouble getting an appointment, your employees will. They’ll seek more convenient, but more expensive options for care – like the ER, or Urgent Care, costing you more in the long run.
2. Prioritize Effective Primary Care Networks
The data is clear: partnering with a strong primary care network pays dividends for employers. The magic word? Value-Based Care. Seek out in-network partners with a proven track record for high-quality care that can back it up with metrics. Even modest reductions in ER stays and hospitalizations can mean major savings for an employer. The result of doing your research? Happier employees, with fewer hospital days and ER visits – at a lower cost to you.
3. Consider High Deductible Plans
High-deductible health plans have been around for a while now. They encourage employees to shop around for the best price when it comes to healthcare. They also tend to be cheaper than traditional plan options.
The problem is that few employers consider access to care when offering a high-deductible health plan. If you aren’t diligent about selecting a primary care partner when offering this type of plan, or you pick a partner with poor access to care, high deductible plans can backfire. Patients who can’t get in to see a PCP often choose more expensive sites of care, like the ER, or may delay seeking care at all, resulting in costlier complications down the line.
When paired with a strong primary care network, a high deductible plan can encourage employees to seek care with a PCP before choosing a more expensive option. This can result in a lower cost of care overall – assuming, of course, you’ve done your homework and selected the right primary care partner.
4. Leverage telemedicine and on/near-site clinics
What’s better for patients and employers than leaving work and driving across town to see a doc? Not having to leave work at all. On-site or near-site clinics can be an effective way to cut healthcare costs for employers. By making preventative care convenient for patients, employers can save money by solving small problems before they become big (and expensive) ones.
On-site clinic not an option? Telemedicine can still make quick access to care a reality. Many minor conditions can be managed with a video visit, saving the employer and employee time and call-offs. Employees appreciate the convenience, and employers reap the benefits of employees taking the time to stay healthy without lost productivity.
5. Offer sick leave and time off for care
Sometimes an in-house doc doesn’t make sense, and telemedicine can’t do the job. It’s counterintuitive, but a generous PTO or sick leave policy can pay dividends. Several studies suggest that a paid sick leave policy can save businesses money by improving job satisfaction and employee retention and reducing on-the-job injury and contagion. Companies offering their employees time to get and stay well may save themselves money in the long run.
Overwhelmed? It’s a lot to consider.
If you’re having trouble reducing healthcare costs, there are options to help. Talking to an experienced consultant can be a great way to devise a plan that works for you and your company. Options like direct-to-employer care, value-based care, and direct primary care make it easier than ever to come up with something that works for your company, regardless of your business size. Need more info? Shoot me a message. I’m always happy to talk!