These days, more and more companies
are realizing that one of the best investments you can make is in your employees’ health and wellness. Effective health
and wellness programs can increase both
employee productivity and loyalty.
But, delivering strong health care plans
and wellness programs isn’t always easy.
Diverse employee populations have different health care wants and needs. Driving
participation can sometimes be an exercise
in futility. And, of course, there’s that little
matter of ever-rising health care costs. But,
according to Nancy Pokorny, vice president
of business development at the Council of
Smaller Enterprises (COSE), there are ways
to provide employees with great health care
options — without breaking the bank.
Smart Business spoke with Pokorny
about health care, along with ways to
reduce costs.
Keeping costs in mind, what should be on an
employer’s health care checklist?
Here’s a list, in no particular order:
- Establish an annual benefits budget. Be
realistic and consider asking employees to
pitch in if rates exceed your budget. - Research what competitors are offering.
- Assess how employees use their benefits. Are you paying for benefits employees
are not using? - Review plan offerings and rates from
multiple carriers, always comparing apples
to apples. - Offer plans, like health savings accounts,
that keep employees aware of the cost of
medical services. - Consider offering a base plan with an
employee buy-up or buy-down option (more
than one plan choice). - Communicate with employees about
benefits coverage (how to best utilize benefits, cost of overall benefits package).
When purchasing a health care plan, what
tactics should a business utilize?
Conduct side-by-side comparisons of different health carriers and different health
plans, comparing the aspects that are most
important to you and your employees.
Research the types of additional services that will be available to your employees as
part of their insurance coverage. For example, many insurers provide 24-hour hot lines
staffed by nurses. Some also provide free
smoking cessation help that includes the
distribution of the patch, or consulting services. Also, review the list of hospitals and
service providers that are included in the
insurance network to make sure your
employees will choose in-network coverage
more often than not.
What other types of strategies may help to
decrease costs?
When establishing a benefits plan, employers can share costs with employees, which
ultimately encourages a joint responsibility
in controlling costs. Employers can consider paying for coverage for employees only,
and not their dependents. Many times,
dependents already have coverage through
another source. This strategy helps to avoid
members of your benefits plan having dual
coverage — another cost driver.
How can wellness programs help reduce
health care costs for businesses?
A number of businesses invest in employee wellness programs as a means of positively affecting employee lifestyles and
reducing future health care costs. Popular
wellness objectives include smoking cessation, weight management, fitness programs
and stress management. Most wellness programs also screen employees for disease at
an early stage when treatment is more effective and less expensive. The reduction in the
frequency of employee illnesses will result
in a reduction of both employer-paid and
employee-paid health care costs.
Wellness programs can be cost-effective
and reduce health risks — now and in the
future — if they are well designed, well
implemented and are evaluated thoroughly.
Program awareness, structure, process and
outcome are essential to a wellness program that produces a successful return on
investment.
What resources can businesses provide to
employees to help minimize their costs?
Employers should communicate with
employees about health plan options
through one-on-one meetings, group meetings, company-wide e-mail or internal company memo. Employees should be educated
on specific tactics they can use to help
reduce their costs, including utilizing doctors’ offices and urgent care centers for
everyday medical needs, purchasing generic medications and using freestanding facilities that have the same equipment as a hospital but cost less. Companies should also
educate employees on the cost of health
care and the types of services that increase
insurance rates, such as the use of the ER
for non-emergency situations.
NANCY POKORNY is the vice president of business development at the Council of Smaller Enterprises (COSE), one of Ohio’s largest
small business support organizations. Reach her at [email protected] or (216) 592-2309. Consisting of more than 17,000 members,
COSE strives to help small businesses grow and maintain their independence. COSE has a long history of fighting for the rights of all
small business owners, whether it’s through group purchasing programs for health care powered by Medical Mutual of Ohio, workers’
compensation or energy, advocating for specific changes in legislation or regulation, or providing a forum and resource for small businesses to connect with and learn from one another.
