How to cut total health costs for your business

In case you haven't noticed, health care costs keep rising and it is killing profits for many small businesses. Some businesses have even been forced to drop coverage all together because the prices have gone up so drastically. So how do we health costs down for our business and still make sure our employees are covered? Below are some suggestions on how to cut total health costs for your business and not leave employees hanging out to dry.

Look at the business health plan you have purchased. The thing that makes the biggest difference in the cost of a health plan is what and how it covers medical bills in case of an emergency. Look first to see what the policy is on this particular are. You will also want to look at changes to plans by raising deductibles or linking employee co-pays more directly to the type of treatment they are receiving.

Encourage your employees to stay within a network. Look for doctors and health care providers that are within the company's network.

Consider offing your employees the benefits of using a Health Savings Account or HSA. Health Savings Accounts combine health deductible health insurance with tax deductible savings accounts. Deductibles are paid out of the account and the insurance companies pick up the major medical costs. Health Savings Accounts can be converted into an IRA when you turn sixty five, and if there is money left over at the end of the year it simply rolls over to the next year.
Check ups and screenings. Companies can cut back on health care costs by having employees go through regularly scheduled physical exams. Some companies make it a requirement before they are hired for potential employees to make appointments with their doctor, dentist, eye doctor's etc and get a full physical exam. It is fair and legal for you as a business owner to require employees to do this.
Make sure your employees are involved in their health care decisions so they get the best deal. Then offer rewards to them for shopping around for cost effective alternatives.
Flex Spending accounts. Some companies offer flex spending accounts which can save them money and the employee. The way they work is money is deducted from their paycheck before taxes are taken out and it is there to use for medical expenses. The down side to flex spending is that if you don't use all the money within the given year it does not roll over into the next; you simply lost it.
Keep your employees healthy. The major contributor to rising health care costs is that employees are becoming unhealthy. For many people, unhealthy diets, along with inadequate exercise result in many unnecessary illness and trips to the doctor. You can offer your employees ways to improve their health and wellness and decrease the total costs of health care for your company. Encourage your employees to get active by helping them get involved with a community gym, and by making healthy foods available. If it's possible provide employees with a company gym pass or better yet, an onsite facility they can have access to whenever they need it. Maintaining a healthy diet along with consistent exercise can decrease the costs you are paying for health care.
Select a health program based on the programs service, not just price. The right business plan should involve more than just what you are paying. The real cost comes from utilization by employees. The more you control you have over utilization, the less money it will cost you. Plan design and utilization costs are extremely important when considering your health care plan and provider.

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Employee Health and Fitness

How to cut total health costs for your business