How Can Employers Reduce Healthcare Costs? Healthcare is a benefit which is extended by the employers, but rising costs have set the alarm bells ringing. Researchers suggest that these costs are set to rise in the coming years. To keep the costs under control, most employers are turning to other methods to reduce costs (taking services of healthcare cost reduction company) and ensure that their employees have sufficient coverage.
Here are some ways: Level-Funding Traditionally the employers have been buying fully insured plans from the insuring companies. In this, the employers agree to pay a certain amount of money towards healthcare costs for a worker often termed as PEPM (per employee per month) arrangement. On the other hand, some employers cover the healthcare costs as they occur in which the risk lies with them. But significant reduction in costs is observed with levelfunding in which the employer set-ups a self-funded plan. But instead of paying on as need basic, they bill it on PEPM schedule. The benefits are tax exemptions and lower premium costs. Making Changes in Prescription Drug Plans The price of prescription drugs is set to rise in future and to make that it is not affecting the employer's profits they are motivating the use of the generic drugs instead of branded ones. They are also asking employees to seek approval before filling in a prescription. The employers are also resorting to cost-sharing plans so that employees
share the price of the top-ticket drugs. Employers are working with pharma companies to get better terms for drug contracts. Promoting Employee Wellness More and more employers are organizing fitness campaigns to keep their herd fit and fine. Many of them are opting for wellness initiatives. In The End These are only some of the ways, but the professional at the healthcare cost reduction company is better equipped to slash your rising health costs.
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