Employees are just as concerned about affordable benefits options as they are about their compensation. In fact, 80% of employees, especially those with dependents, would prefer new or extra benefits to a pay raise, according to a survey by Glassdoor.
Increasing employee demands simply add to the pressure on business owners who are struggling to administer great benefits at a reasonable cost. Employer-sponsored healthcare coverage, for example, can cost an employer up to $15,000 per employee. Not only does that cost put a financial burden on small to medium sized businesses, but most companies are only able to evaluate their employee benefits offerings on an annual basis, making it challenging to service their entire workforce.
However, there are several ways for companies of all sizes to save on health insurance.
A co-payment is a cost-sharing method in which you and your employees split the cost of a health plan. To put it another way, you can provide comprehensive health plans to your employees while not eating the entire cost. As a result, when your employees file a claim under the corporate health insurance plan, you, as the employer, would pay a fixed charge at the time of service, with the employee covering the remaining costs.
Introduce a Wellness Program
In the workplace, happiness and wellness aren’t just important to company culture, but they also reduce the number of employees who miss work due to illness. A well-thought-out wellness program boosts employee engagement while also fostering a healthy culture, which has the potential to lower healthcare expenses. Employees who are in good health visit the doctor less frequently and take fewer sick days. They also work harder and, as a result, produce greater results for the company.
Target Specific Hospitals
As a business, you'll be better off dealing with hospitals that you know will provide the greatest care for your staff. More importantly, choosing healthcare providers in your plan who do not charge exorbitant rates may help you cut insurance costs. It's a win-win situation for both you and your staff! In general, going to in-network medical specialists saves money since insurance companies negotiate reduced rates with in-network providers.
Utilizing a PEO
When it comes to lowering benefit-related expenses, most businesses, regardless of size, will work with a Professional Employer Organization (PEO). PEOs have more alternatives and carriers for health insurance than traditional insurance providers. The business (you) will benefit from this cooperation in a variety of ways, including not having to manage the business/carrier connection, not having to seek for new plans every year, and not having to force yourself to grasp what changed in each plan and why. The PEO oversees this.
For a more detailed explanation of what a PEO is and how it operates click here and watch the video below.
Whether you're working with a PEO or going it alone, it's critical to carefully consider each carrier's strategy. Its important to not pick a plan strictly due to cost. Employees will want to get the most bang for their buck, but as an employer, you should be concerned about the quality of care your employees will receive, as well as provider availability, and how quickly new patients can be seen.
Whatever decision you make, keeping expenses low will always be apriority when it comes to employee perks and health insurance. According to researchers, health insurance costs will only continue to climb. But that shouldn't stop you or your HR staff from continuing to prioritize your employees' happiness and wellness. What you can be certain of is that a healthy workplace leads to higher productivity, fewer employee sick time, higher morale, and lower employee turnover.
The Cornerstone Advantage
It's clear that PEOs not only save business owners a tremendous amount of money with health insurance, but also almost eliminates the administrative burden associated with employee benefits.
Like other PEOs, Cornerstone will help you save significantly on employee benefits, automate your payroll, lower your experience modifier, and help with certain employee related compliance. However, unlike other PEOs, our focus is on excellent customer service.
Other PEOs will just add you to their system and send you an invoice. At Cornerstone we assign a professional customer service rep to work with your account. This not only adds more of a human touch, but it also allows us to create custom solutions unique to your business. Got questions? We have a rep to help you answer them. A problem occurred? You have a rep who understands your business and can create an effective solution.
Contact us here for a FREE consultation.