This article by Leslie Small for Fierce Healthcare discusses what employers are doing to counter the predicted 5% increase in heathcare benefits costs over the next year.
Read the full original article from Fierce Healthcare.
"In 2018, large U.S. employers expect healthcare benefits costs will rise 5% for the fifth consecutive year—and in response, many companies are getting creative with their cost-control efforts." Some strategies include managing the administration of high-cost medicines, building outcome-based pricing into purchasing agreements for specialty drugs, and implementing programs to manage the impact of manufacturer coupons.
One strategy not noted in the article, but that can save small- to mid-size employers a baseline of 12.5% on healthcare spend, is an innovative model called partial self-insurance. While larger companies have had the ability to self-fund health insurance for years, partial self-insurance opens up the option to smaller organizations. Download our Quick Guide to Partial Self-Insurance to learn more:
The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose