Like death and taxes, insurance premium hikes are one of the certainties of life.
While health insurance is an important investment for employers, that doesn’t mean you have to always accept rising insurance premiums. There are several ways to reduce your insurance premiums, ranging from re-evaluating your plan to reducing coverage or finding another provider.
However, there is another approach that will not only reduce your insurance premiums, but it will improve the health of your workforce as well.
How much are insurance premiums costing employers?
According to the US Bureau of Labor Statistics, health care is one of the most expensive benefits that employers provide, making up 8.2% of total compensation in 2020. Covering almost 155 million Americans, employer health insurance cost employers $7,739 per single policy and $22,221 per family policy in 2021, up 4% from 2020.
While the 4% rise in premiums over the last year is considered modest, insurance premiums have been rising steadily for employers over the last decade. As an example, the average premium for family coverage has increased 22% over the last 5 years and 47% over the last 10 years.
And, there’s no reason to believe this trend won’t continue into the future.
How employer pharmacy plans can help reduce insurance premiums
With health insurance premiums on the rise, you aren’t alone if you are looking at ways to reduce your costs. But it might seem impossible to get a better deal. Aside from adjusting coverage options to reduce your premiums (or canceling), it can be a tall order to take control of the mounting cost of insurance while still supporting your employees.
Instead of looking at what you can take away, it might be time to look at what you can add to your plan in order to save costs.
Insurance premiums are assessed on risk and based on previous insurance spending. One way to reduce future premiums is to look at the current risk factors and take a proactive approach to minimize them. This might involve investing in an employee wellness program or offering a supplementary pharmacy plan to improve medication adherence.
While spending more money to save money may seem illogical, setting up a supplementary pharmacy plan for your employees can help minimize insurance premiums in several ways.
- Providing your employees with access a standalone pharmacy plan, instead of going through your insurance company, can reduce your overall claims and which can bring down the cost of future premiums.
- Helping your employees access the medications they need to manage chronic conditions will improve their health and reduce the chances of them having to use insurance in the future.
Health insurance premiums are always going to rise. It makes business sense to anticipate this trend and take a proactive approach to minimize your spending. That’s why you should consider investing in a supplementary pharmacy plan for your workforce.
The advantages of an employer-sponsored pharmacy plan for your business
By partnering with a dedicated pharmacy provider, your employees get low-cost (or in the case of HomeMed "no-cost") access to chronic medications. While this is a good deal for your staff, your business will also benefit from having an employer-sponsored pharmacy plan in these ways:
- Reduced absenteeism - with simple and affordable access to medications, your employees are more likely to manage chronic conditions and enjoy better health - meaning less sick leave and absenteeism.
- More productivity - with easy access to the medication they need, your employees’ health will improve, leading to increased productivity, improved performance and a healthier bottom line for your business.
- Decreased insurance costs - with reduced illness and leave, your employees will make fewer claims. Over time you’ll see a decrease in health insurance costs across the board, including your premiums.
- Improved recruitment - your healthier and happier workforce will boost employee retention rates and help attract potential staff to a business where employee health is prioritized and valued.
Ongoing benefits for your employees
In addition to the many benefits to your business, introducing an employer-sponsored pharmacy plan will also deliver advantages to your employees:
- Better health - with easy and affordable access to medication for chronic conditions, your employees will be able to look after their health, without worrying about rationing medication or going without.
- Cost certainty - with access to more affordable medication (for free or for a low fixed rate), your employees can take the medication they need to stay on top of their conditions and feel better.
- Family coverage - with around a quarter of the adult population providing regular care, extending pharmacy coverage to family members not only improves health outcomes but also reduces the need for leave.
- Accessibility - with a home delivery model, instead of having to go to the pharmacy outside of work hours, employees can receive their medication straight to their door, eliminating unnecessary stress, travel and time away.
- Auto refills - with up to 50% of the population not filling prescriptions when due, offering an automatic refill service ensures your employees stay on top of their health so they can perform at their best.
Partner with HomeMed to realize all these benefits
HomeMed is a nationally licensed mail-order pharmacy that partners with businesses to provide employer-sponsored pharmacy plans. Committed to reducing insurance premiums and the skyrocketing costs of healthcare, HomeMed works with employers to deliver pharmacy benefits that not only help businesses minimize costs but also improve the lives of employees.