Benefits Blog: Five Ways to Save on Healthcare Costs

It’s no secret that healthcare expenses have been on a steady, and costly, climb for the past two decades.  Price hikes of 6.5 percent are projected in 2022, with the ongoing COVID-19 pandemic playing a significant role in those increases.  This fact of financial life means employers must think both strategically and creatively about how to lower their health benefits expenses in 2022.  Here are five ways to help achieve savings:

  1. Control Drug Spending – Drug prices rise faster than any other medical service or commodity, with costs now 33 percent higher than in 2014, according to GoodRx.  Employers can educate employees on the price differences between name-brand and generic medications, and encourage using generics to save money while still receiving the same quality treatment.
  2. Encourage Active Benefits Participation – This includes encouraging employees to improve their health literacy, research treatments, and price shop.  By seeing specific prices for procedures and other services, employees can educate themselves before making costly health decisions.
  3. Offer Savings Accounts with Carryovers – Health savings accounts (HSAs), flexible savings accounts (FSAs), and other tax-advantaged savings account options empower employees to control their own spending and improve their health literacy.  Many accounts allow for fund carryover year to year, encouraging more contributions. Since many employers match contributions up to a limit, more money added to these accounts means greater tax savings for everyone.
  4. Embrace Virtual Health Options – A major takeaway from the pandemic has been the expansion of telehealth services, allowing individuals to connect with health professionals quickly, safely, and less expensively.  Employers adding telehealth services into their plan expand access to care and lower expenses for everyone.
  5. Consider Plan Funding Alternatives – A more drastic option for reducing health costs is restructuring how plans are funded.  For instance, a self-funded plan may be more cost- effective than paying a monthly premium for a fully insured plan.  Other options include level-funding or reference-based pricing models, each of which carries its own set of administrative rules and legal constraints.  Funding decisions should not be taken lightly and should be based on several factors, such as size of an organization, risk tolerance, and financial stability, including employees’ ability to take on large premium increases.

Selecting the best methods to contain healthcare costs depends on each organization’s unique capabilities.  The Benefits Team at The Reschini Group can help sort out the right option for your particular situation. Contact us today to get a conversation started.


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Copyright 2022 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

Benefits Blog – Remote Control: Telemedicine Offers Wider Care Options

You can call up a quote from Shakespeare in seconds, send a message to the other side of the globe immediately, and even buy a car, all from your smartphone, laptop, or tablet.  So why not get checked by a physician?  Why not, indeed.

Such is the attraction of telemedicine – the practice of health care from a remote location, which has proven to be quite effective as an attractive option for many health care providers and their patients, especially given the Covid-19 pandemic.

Using live video transmission, typically through an online app designated by the provider, doctors and patients can see each other and talk in real time about any health care concerns or questions – all without needing to be in the same exam room together.  Although telemedicine is not a complete replacement for direct patient care, it can be a useful tool for a variety of medical services, such as evaluation, diagnosis, and prescribing treatment.

Patients benefit from staying in the comfort of their own homes, oftentimes with a caregiver taking part in the telemedicine session to provide additional information and follow-up care.  The potential spread of germs and infection in clinics and hospitals is minimized.  Those patients living in rural areas, or who have difficulty arranging transportation, can access quality medical care in a much more convenient manner.  And those patients recovering from surgery or severe illness can be readily monitored through telemedicine visits.

For many patients, obtaining medical care represents a significant cost in time, resources, and money.  Telemedicine helps lower those barriers, while helping to enhance the value of regular visits with the doctor.  As access to electronic medical records expands, physicians can combine this technology with telemedicine to bring patients even higher quality care.

Check with your benefits provider to see how telemedicine fits into your medical coverage, potentially lowering costs while improving the doctor-patient relationship.  The Benefits team at The Reschini Group can help in this regard.

Copyright 2021 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

Telemedicine Resources from The Reschini Group

Contact The Reschini Group with your questions or concerns regarding D&O Coverage.