October 05, 2023

Five Employee Benefits Cost Mitigation Strategies to Explore Now

Employee Benefits

3 min read

Needing to explore cost mitigation can be stressful when trying to achieve the right balance between the costs of benefits against employee expectations and talent acquisition needs. Including the perspectives of both your CHRO and CFO is especially important here. The following five strategies are worth consideration when looking at cost mitigation through an HR and finance lens:

1. Cost mitigation through funding alternatives

Consider other health plan funding strategies to determine if another financing option improves the cost-effectiveness of your plan, particularly if your plan is fully insured.

2. Cost savings opportunities with plan administrators

Depending on your carrier partners (e.g., medical plan administrator, Pharmacy Benefit Manager), there may be additional network or plan design adjustments that can be implemented to help better manage your organization’s claim spend.

3. Second opinion programs

Second opinion and healthcare concierge services give your employees access to medical specialists across a wide spectrum of complex health conditions to help answer any questions, review treatment plans, and provide a second opinion on both diagnoses and treatment alternatives. Another benefit to these programs, when they are aligned with major hospital systems, is to get patients seen faster than if they had to book appointments themselves.

4. Scale back on lower utilized covered benefits to reduce premium rates

There are ways within an insured plan to decrease premium by reducing coverage but giving back monies to limit financial exposure for an employee such as using a Health Reimbursement Arrangement (HRA). This provides reimbursement to employees covered under your health plan for any increased out-of-pocket expenses they will incur.

5. Look for non-monetary perk opportunities that improve the employee experience

Prioritize the employee experience as you consider alternatives. Benefits like flexible work arrangements, remote work, and reduced hours on Fridays during the summer months may be low- to no-cost for your organization, but for your employees, they make a material difference in work-life balance and how they view their workplace.

The common goal is to achieve the right balance between cost mitigation and employee health management through design of a benefit strategy that delivers on both. Together your CHRO and CFO can analyze these against your current benefits and programs in order to determine the best approach for your organization.

Is cost mitigation top of mind? Ask our employee benefits experts for more information or download these helpful white papers on benefits strategy planning and effective employee benefits cost mitigation strategies. See the way forward today.

With more than 10,000 clients managed in our National Employee Benefits Practice, Risk Strategies delivers the high-quality, cost-effective, and compliant benefits programs and solutions employers need and employees value. Visit risk-strategies.com for the latest observations in employee benefits.

The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.

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