Our last post looked at ways of creating a healthier workplace to reduce the soft costs related to employees’ health insurance. Most employers recognize that an attractive benefit package promotes loyalty as well as generates better productivity amongst the company’s employees. On the other hand, it also can easily be one of the most expensive costs an employer has to consider. Like most businesses in our tough economy, you are probably looking at ways to cut benefit premiums, pronto.
Creative Insurance Alternatives
As premiums continue to increase, insurance carriers are offering more creative benefit solutions. The strategy is to offer valuable benefit coverages, with premiums affordable to average income earners.
Aetna, one of the nation’s leading insurance companies, has experienced increased growth in its High Deductible Health Plans (HDHP) compatible with a Health Savings Account (HSA). An HDHP plan allows for participants to have the richness of a traditional PPO plan, with lower premiums. Participants are more cognizant of the cost of their care; in part due to the plan’s higher deductible and also the ability of participants to retain any unused portion of the employer/ employee contribution from their HSA to use for future medical needs. Furthermore, many participants under this plan take a more proactive approach when it comes to their health. They are more likely to maintain a healthier lifestyle, seek generic alternatives to brand pharmaceuticals and visit urgent care facilities linked to their plan, lowering their healthcare costs to preserve assets in their HSA.
This creative insurance alternative not only benefits the overall health of employees, but also helps mitigate renewal increases to employers, as many HDHP plans tend to see a decrease in utilization. As a result, these lower costs allow employers to reward employees participating in the plan (some HDHP plans cost less than a HMO coverage) by increasing their employer contribution towards an HSA account.
We’ll continue to explore this unique health insurance option and discuss Health Savings Accounts (HSAs) in our next post.
