Health management programs have been a hot topic over the last few months. Bitter words were thrown about during the election campaign by both sides and the opinions of both employers and employees were polarized.
Now that President Obama has been re-elected the months of waiting are over and companies will now have to move fast and make key decisions by the summer of 2013 for implementation by the 2014 open enrollment cutoff date for the new health reform laws. When the new laws kick in employers will be obligated to cover more employees and therefore face additional costs.
Employers have increasingly turned to employee benefits consulting firms to curb their costs in recent years. This has proven to be highly successful and 2012 saw the lowest average cost increase for employers since 1997 (based upon the National Survey of Employer-Sponsored Health Plans, as conducted by Mercer). The impending health reform laws present a new challenge for employers, and never has the expertise of the employee benefits consulting firm such as Advantage Group of Tampa, FL been so important in the profitability of a business.
Health benefit costs to the employer fell from 6.1% in 2011 to 4.1% per employee in 2012. It is projected that if employers made no further changes their costs would rise by almost 7.5% for 2013, however by keeping a step ahead thanks to the skill and acumen of business consulting specialists, plans could be implemented to contain these increases at around 5%.
One solution many employers have utilized is shifting enrollment to lower-costing consumer-directed health plans (CDHP). On average the cost of coverage with a CDHP is 20% cheaper than that of PPO coverage – or $7,800 vs. $10,000 to put it in figures. Traditionally employers have shied away from offering CDHPs as a medical plan, but employers are now seeing it as a way of containing costs and increasing profitability.
Looking to the future, employers need to be determining their next generation of cost containment strategies today. Health reform laws that are now destined to go ahead with the re-election of President Obama necessitate a long-term strategy for employers, and by partnering with Advantage Group or a similar employee benefits consulting firm, these new policies can be planned and executed before it's too late.
The ever-changing healthcare market not only presents employers with innovative ways to purchase health insurance, but also with ways to affect the quality of healthcare their employees receive. And with it the satisfaction and retention of quality staff.
For more information, click here.
Now that President Obama has been re-elected the months of waiting are over and companies will now have to move fast and make key decisions by the summer of 2013 for implementation by the 2014 open enrollment cutoff date for the new health reform laws. When the new laws kick in employers will be obligated to cover more employees and therefore face additional costs.
Employers have increasingly turned to employee benefits consulting firms to curb their costs in recent years. This has proven to be highly successful and 2012 saw the lowest average cost increase for employers since 1997 (based upon the National Survey of Employer-Sponsored Health Plans, as conducted by Mercer). The impending health reform laws present a new challenge for employers, and never has the expertise of the employee benefits consulting firm such as Advantage Group of Tampa, FL been so important in the profitability of a business.
Health benefit costs to the employer fell from 6.1% in 2011 to 4.1% per employee in 2012. It is projected that if employers made no further changes their costs would rise by almost 7.5% for 2013, however by keeping a step ahead thanks to the skill and acumen of business consulting specialists, plans could be implemented to contain these increases at around 5%.
One solution many employers have utilized is shifting enrollment to lower-costing consumer-directed health plans (CDHP). On average the cost of coverage with a CDHP is 20% cheaper than that of PPO coverage – or $7,800 vs. $10,000 to put it in figures. Traditionally employers have shied away from offering CDHPs as a medical plan, but employers are now seeing it as a way of containing costs and increasing profitability.
Looking to the future, employers need to be determining their next generation of cost containment strategies today. Health reform laws that are now destined to go ahead with the re-election of President Obama necessitate a long-term strategy for employers, and by partnering with Advantage Group or a similar employee benefits consulting firm, these new policies can be planned and executed before it's too late.
The ever-changing healthcare market not only presents employers with innovative ways to purchase health insurance, but also with ways to affect the quality of healthcare their employees receive. And with it the satisfaction and retention of quality staff.
For more information, click here.
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