How Digital Wellness & Incentive Programs Save Money On Healthcare

The cost for a company to pay for its employee healthcare programs can be significantly higher than one would imagine. Unfortunately, those costs are only seeming to rise. This is leaving many business owners looking for ways to save money where they can. For instance, consider cost-shifting. As stated by the International Company of Employee-Based Benefit Plans, at least one out of three employers have had to increase the cost of deductibles, maximum out-of-pocket costs and shares of premiums for their employees to stay afloat.

It is not surprising to find that many small businesses are now having to cut their employees shifts down to part-time status in order for them to not qualify for employer-based healthcare plans. While many of these strategies can help the bottom line of a business, it can come at the cost of the company culture and employee morale and satisfaction. Short-sighted approaches can increase a business’s employee turnover and keep talented help away.

Thankfully, there are some alternative ways that businesses can save on healthcare costs for their workers including some incentive programs and digital wellness options. Business owners can help control their costs while not sacrificing their relationships with their employees.

Self-Insurance Plans

There is a common misconception that only larger companies can make use of self-insurance plans. The evolving healthcare landscape has created a way for small employers to gain incentives for self-insurance plans as well. By leaving the commercial insurance market, businesses of all sizes can effectively take control of their own costs. The ACA has new requirements in place that limit how much insurance organizations can spend on administrative expenses for medical-loss ratios. These changes would not affect those businesses that choose to allow self-insurance plans in their organization.

Self-insurance helps employers customize the insurance products they want to offer without being forced into more expensive insurance options that may not effectively address the needs of the business and employees. All businesses are unique and their health insurance needs will be as well.

Digital Wellness And Employee Incentive Programs

Employers are beginning to realize just how important it is for them to take on a more proactive role in their healthcare strategies. Helping manage the health of their employees is a significant part of this role. Employers who help to increase their employee’s health with better eating and physical activities spend less on healthcare costs. Organizations need to hold their workers accountable for their health and wellness. Making your employees get regular screenings is essential for identifying any health risk factors. Wellness and incentive programs are great catalysts for promoting the benefits of these.

There are various ways employers can implement these programs into their organizations. Some companies will offer financial incentives to employees who actively participate in any health improvement programs offered. Other companies may choose to limit certain healthcare plan options to employees who do not choose to participate in the employee health and wellness programs. For self-insurance companies, it can save money to keep the health of your employees a priority.

Health Screenings

Employers who are serious about saving money on the cost of their healthcare need to put the health of their workers on the top of their priority list. The health of employees plays a huge part in how expensive healthcare costs will be. Many costs and expenditures can be reduced when there is a shift from treating health issues to the prevention of health conditions. Health screenings on a regular basis are the first step in an organization taking a proactive and preventative approach with the health of their workers.

According to a recent study published in the American Heart Association journal, organizations that conduct health screenings create a way to detect health risk factors early on. Early detection of certain health risks is the best way to prevent noncommunicable diseases from developing. Screenings are important and necessary steps organizations need to take to build better relationships with their employees, drive down their healthcare plan costs and be better healthcare consumers.

Wellness and incentive programs are the best way for organizations of all sizes to save money on their healthcare costs. Prevention is the key to savings in the long run. These tools are a great way to have a sizable impact on the health and wellness of your organization.

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