Blog

Cost Mitigation Strategies

posted by TrueNorth Employee Benefits on Monday, February 20, 2023

PLANNING IS CRITICAL FOR EMPLOYERS TO DEVELOP COST-SAVINGS STRATEGIES IN 2023. 

Traditionally, employers have addressed rising healthcare costs by shifting a greater share of costs onto their employees. While some employers plan to stick with this strategy, savvy employers will recognize the potential chilling effect this can have on recruiting efforts due to the state of the labor market. 

Employers should be open-minded regarding strategies that could help manage their healthcare costs while attempting to improve affordability for employees, such as investing in telemedicine of incentivizing employees to seek cost-effective care options. Some organizations are negotiating with providers, as some carriers are currently offering discounts and reduced management fees. 

Other cost mitigation strategies include:

1. Modifying health plan design - consider shifting to self-funded or partially self-funded plans.
2. Incorporating health care analytics - Use claims & diagnostic information to establish & measure workforce wellness initiatives. 
3. Improving employees' healthcare literacy - Utilize communication tools to educate employees and provide them with critical healthcare plan information. 

Rapidly increasing healthcare costs will likely continue to impact employers for the foreseeable future.

Savvy employers will look to implement effective strategies now to rein in these costs and keep employees healthy. Employers who proactively implement strategies to address rising healthcare costs will be better positioned to meet their employees’ needs and find long-term solutions to mitigate costs.

Ready to discuss mitigation strategies with one of our Specialists?