Health care costs are climbing fast. As an employer, it’s more important than ever to find ways to manage expenses while keeping your team covered. Here are five practical strategies to help you control costs and support your employees’ health.
1: Encourage Preventative Care
Preventive care helps employees stay healthier — and it can save your business money in the long run. Under Affordable Care Act (ACA)-compliant plans, employees have access to nearly 20 preventive care benefits at no cost, including screenings for blood pressure, cholesterol, diabetes, and certain cancers. Encourage your team to take advantage of these benefits early to avoid costly treatments later.
2: Promote Generic Medications
Generic prescriptions can significantly reduce pharmacy costs. In fact, nine out of 10 prescriptions in the U.S. can be filled with a generic alternative, usually at a fraction of the price of brand-name drugs. Educate employees on the savings and effectiveness of generics to help lower their overall health care spending.
3: Offer HDHPs and Health Savings Accounts (HSAs)
More than half of U.S. employers now offer HDHPs paired with Health Savings Accounts (HSAs). These plans typically come with lower premiums and offer a triple tax advantage:
- Contributions are tax-deductible
- Growth and interest are tax-free
- Withdrawals for qualified expenses are tax-free
Plus, HSA funds roll over year to year, helping employees build long-term savings for medical expenses.
4: Improve Price Transparency
Many employees don’t realize hospitals and health plans must now publish clear pricing information for 300+ common services, including X-rays, lab tests, and outpatient visits. Share these resources so employees can shop for care, compare costs, and make more informed choices.
5: Expand Telehealth and Disease Management
Telehealth makes it easier for employees to get care quickly and conveniently, often at lower costs. Combine virtual care with disease management programs for conditions like diabetes, hypertension, and asthma to support healthier lifestyles and reduce preventable claims.
Controlling Your Long-Term Costs
Educating employees on their health care options is one of the most effective ways to control long-term costs. Work with your benefits broker or health plan partners to access tools, communications, and resources that help your team make smarter, more cost-conscious health decisions.