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:
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.
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.
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.
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.
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.