Could your employee healthcare plan be hurting your bottom line? As business owners, we all want to do our part to meet the needs of our employees. It is quite possible, however, for two different companies to have the exact same health benefits with the exact same carrier at vastly different costs. Why is it possible to be paying more than others for the exact same coverage? How does this impact your employees’ paychecks and your ability to recruit?
The Fine Print
When auditing the existing healthcare landscape of newcomer clients, there are a few opportunities for cost savings that we commonly come across:
- Elimination of hidden fees and costs
- Control of inflationary fees and costs
- Trimming of waste in the plan
- Unintentional abuse (misuse) of the plan
- Employee self-care
- Pharmacy charges
- Renegotiation efforts
On their own, these factors may seem small, but they can add up quickly in our experience. For example, plan cost percentage increases of around 5% may not seem so bad at first. However, 5% every year over 5 years can be an exponential increase. Before you commit to a healthcare plan, be sure to closely look at expenses using a multi-year perspective when analyzing healthcare costs for your workers.
The Danger of Letting an Unoptimized Healthcare Plan Go Unnoticed
While we wouldn’t say an unoptimized healthcare plan can threaten the very existence of a business, making efforts to retool your offering could come with a host of benefits to your business and its team.
Keep in mind that roughly 60% of employees say benefit offerings are a significant factor in their decision on whether or not to take a new job. Selecting the right plan is critical to attracting and retaining top talent. Especially if you are overpaying and overcharging your employees. Of course, a strong healthcare plan is only part of what makes a prospective employer worthwhile to applicants.
Professional development, job security, and compensation play critical roles in creating compelling opportunities for entry-level workers, management, and the executive suite. A well-optimized healthcare plan can level the playing field and increase a business’ overall competitiveness and ability to recruit high-quality candidates to their company. Conversely, it is notably more challenging competing for jobs and projects when overhead is higher than your peers.
Revitalize Your Employee Healthcare Plan with TriBridge Partners
To discover how our experts can assist your organization or business, please call our office today at 240-422-8799, email Jessica Storck at Jessica.storck@tribridgepartners.com, or find us on LinkedIn.
