Employers Explore Cost-Saving Benefit Strategies

Employers are looking at a variety of strategies to control health care costs according to a study by Gallagher. 
 
Novel Approaches
Some novel cost-control options include aggressive medical management of specialty drugs, pharmacy alliance models, acceleration of biosimilar adoption, and monitoring of emerging gene therapy programs.
 
CDHPs
Cost-sharing is likely to rise through the use of CDHPs, health plan contribution increases, and other mechanisms — in balance with changes that help maintain the affordability of benefits. Forty-six percent of employers offered a consumer-directed health plan (CDHP) in early 2020. Twice as many larger employers offered them compared to small employers. Adoption may pick up in the 2021 plan year since cost-saving features have a strong appeal during economic uncertainty. 
 
Variable Employee Contributions
Another opportunity to contain medical plan spending is setting variable employee contributions based on factors like salary (10%) or the number of family members on the plan (10%). It may be a solution to share costs more equitably among employees.
 
Individual vs Family Coverage
Fifty-eight percent of employers have applied one amount for individual coverage and another for family coverage in 2020.
 
Prescription Coinsurance
A recent trend is coinsurance for prescription drug plans, growing 5 points since 2019 to 37% of groups. Larger groups accounted for the greatest increases, including 39% of upper midsize groups (up 5 points) and 52% of large groups (up 7 points).
 
Telemedicine
Investments in physical wellbeing favored telemedicine as the most common healthcare cost-control tactic in early 2020 (59%). COVID-19 continues to accelerate adoption. 
 
Waiving Preventive Care Deductibles 
Many employees have skipped preventive care amid the pandemic. Encouraging employees to receive delayed services may reduce treatment costs with early detection of disease. Dental checkups should also be part of helping employees return to a routine because oral and physical health are linked. Eighty-three of employers waive in-network deductibles for preventive care. Simply reminding plan members of this benefit removes cost barriers.
 
More Insights
•    More Plan Choices: Since 2018, there was a 5-point increase in the number of employers that provided three or more plan choices increasing to 40%. Those that offered only one declined 6 points to 25%
•    Tech Investment: 69% of employers had planned to invest in HR technology platforms by 2022 before the outbreak in the U.S. took a sharp upward turn
•    Popular Benefits: After the arrival of COVID-19, 83% of employers have been putting a stronger emphasis on benefits related to emotional wellbeing (65%), leave policies (47%), medical (39%), and physical wellbeing (36%)
 
Contact your LISI Regional Sales Representative to get the latest benefit plan strategies.