Offering health insurance is one of the most highly valued benefits for employees, providing them with the peace of mind that any medical expenses they may need will be covered. This increases work motivation and is an effective talent retention strategy.
However, how profitable is it for a company to offer health insurance for its employees? The reality is that providing this service represents a significant part of a company’s budget. Therefore, developing strategies to reduce employee health insurance costs is a primary concern for businesses.
An effective strategy can make a difference in a company’s annual budget, implementing measures that help keep the company’s budget balanced without sacrificing employee benefits.
Prevention as the basis to reduce employee health insurance costs
In the complex business world, reducing employee health insurance costs requires more than just choosing a provider that offers lower prices, as this option may not be sufficient to meet workers’ needs while saving money.
Therefore, it is the responsibility of human resources departments to organise and adopt a proactive approach, enabling them to develop a strategy to manage health policies in the best possible way.
This strategic plan includes a precise diagnosis of the needs of the company’s members, an evaluation of health policies, and the implementation of healthy alternatives within the organisation. This way, it is possible to reduce employee health insurance costs.
The importance of healthy habits
Ifeel’s latest report shows that prevention is key to preventing problems from escalating and causing worse consequences. Therefore, promoting a healthy lifestyle is one of the most effective strategies to reduce employee health insurance costs.
To achieve this, companies can implement mental health solutions that include physical activities, balanced nutrition, and education on mental health. Preventing diseases through healthy habits reduces the need for medical care and improves employees’ productivity and overall well-being.
For instance, companies like Google and Microsoft have implemented wellness programmes that significantly reduce health costs and increase job satisfaction.
Preventive health programmes can include regular medical check-ups, vaccinations, and workshops on disease prevention. These programmes help detect health issues early, potentially reducing the costs of more expensive treatments in the long term. The initial investment in prevention may seem high, but the long-term economic and health benefits justify the expense.
Studies suggest that every dollar invested in prevention programmes can save up to three dollars in medical costs.
Steps to reduce employee health insurance costs
Reducing employee health insurance costs requires a combination of well-planned strategies that provide multiple benefits for everyone. Here are some general recommendations to achieve this effectively:
1. Choose the co-payment method for employee health insurance
An effective alternative to reduce health insurance costs is to implement co-payment. This method allows the cost of a doctor’s visit, tests, or medical procedures to be shared between the employee and the company. Although it is not the definitive solution to budget problems, it helps maintain coverage and the quality of medical care without increasing expenses
Benefits of Co-payment:
- Cost Distribution: Sharing expenses reduces the financial burden on both the company and the employees.
- Responsible Use: This approach educates employees about the appropriate use of benefits, promoting a moderate and conscious use of medical services.
2. Negotiate with Your Health Service Provider
Negotiating terms with the health service provider when implementing co-payment is crucial. There are various forms of co-payment, and it is possible to agree on a percentage that maintains service quality without harming any of the involved parties.
Negotiation Strategies:
- Clear Terms: Ensure that the terms of the co-payment are well-defined and understood by all parties.
- Advantageous Contracts: Seek contracts that offer advantages, especially if the company has a large number of employees. Consider using different providers depending on the workers’ profiles, for instance, one for those who do not need to travel and another for frequent travellers.
3. Encourage Judicious Use of Benefits
Investing time in increasing employees’ awareness of the responsible use of the company’s health insurance resources is essential.
Recommended Strategies:
- Ongoing Education: Conduct workshops and informational campaigns on how to use benefits appropriately.
- Collective Awareness: Reinforce the idea that excessive use of consultations and tests can lead to higher monthly payments, affecting all employees.
4. Implement Preventive Programmes
Creating an organisational culture focused on prevention is essential for keeping health costs low in the long term. Effective prevention programmes improve employees’ health and reduce the need for costly treatments.
Components of Preventive Programmes:
- Regular Medical Check-ups: Facilitate access to regular check-ups and exams to detect health problems early.
- Promotion of Healthy Habits: Encourage physical activity, balanced nutrition, and stress management through mental health solution programmes.
5. Integrate Mental Health Solutions and Health Insurance
Mental health is a crucial component of employees’ overall well-being. Therefore, integrating mental health services into insurance plans can help prevent issues such as stress, anxiety, and depression, which are common in the workplace.
Attention to mental health not only improves employees’ quality of life but also can reduce sick days and increase productivity. Workplace wellness programmes have shown significant returns on investment. A meta-analysis found that these programmes save $3.27 in medical costs and $2.73 in absenteeism costs for every dollar invested.
Kalina Pleil, People Operations Specialist at Labster, an ifeel partner company, comments:
“Before choosing ifeel, we were offering health insurance in most of our locations but we knew that a healthy mind is just as important to the wellbeing of employees. We also know that investing in wellbeing helps reach employees their full potential and benefits both people and organization.”
Innovative mental health solutions: ifeel
Ifeel is the leading European mental health solution for insurers that offers psychological support services, and guarantees cost reductions for companies. Such tools allow employees to access therapy and mental health resources flexibly and confidentially, promoting a culture of mental health solutions within the company.
6. Use technology to optimise health management
Technology helps reduce employee health insurance costs and improves health management efficiency. Tools like telemedicine, mobile health apps, and advanced data management systems can transform how health services are delivered.
Technology in insurers, as achieved by ifeel, is transforming how companies and insurers approach mental health, making services more accessible and efficient.
“Our partnership with ifeel has catalysed a positive shift in discussing mental well-being at SCOR. Since implementing ifeel’s solution, we’ve seen an increase in open conversations about mental health within our organization.”
Advantages of using technology in health:
- Accessibility and convenience: Telemedicine allows employees to access medical services from anywhere, reducing time and costs associated with in-person visits.
- Efficient management: Advanced data management systems facilitate accurate tracking of medical histories and better coordination between health providers.
How to reduce employee health insurance costs with ifeel
At ifeel, we know that to reduce employee health insurance costs is an achievable goal through a combination of well-defined strategies and the implementation of innovative solutions. By fostering a culture of prevention and leveraging the advantages of technology, companies reduce costs and improve employees’ quality of life and operational efficiency.
Therefore, it is timely for insurers to trust experts to ensure their product remains at the forefront. Ifeel has developed a mental health solution for insurers to assist in this process, aiming to help insurance companies increase accessibility and reduce mental health claim costs.
Thanks to our innovative triage system, insurers can receive personalised, data-driven advice on the most effective measures to detect mental health issues in their insured, accurately understand users’ needs, and respond appropriately to their demands through this service.
This approach helps insurers provide continuous and adaptive support, improving customer satisfaction and loyalty. In addition, this solution helps reduce the frequency and severity of mental health-related claims, optimising risk management.
Clients such as SCOR, AXA, and Femi Connecting Healthcare already rely on our services, which improve the quality of life of their policyholders and increase the operational efficiency of their organisations.We hope you found this article on health insurance for companies interesting.
If you would like to learn more about how to reduce employee health insurance costs through our mental well-being solution for insurers, simply request it, and we will contact your team as soon as possible.
