ResourcesSmall Business Health Care Hub by JPMorganChase
Strategies for managing health insurance costs
Take charge of your health insurance expenses and maximize your plan's value. Although costs may fluctuate, there are effective strategies to help you manage them.
These strategies can guide you in discussing options with your advisor or exploring them independently. By adjusting your funding approach, choosing the right network, or considering different insurance models, you can lower costs and offer great benefits to your employees.
Explore different funding options
Changing your health insurance funding model can help your business save money and offer more flexible benefits to you and your employees.
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Fully insured plans
These plans are popular for limiting financial risk and avoiding big claims. However, they might not always be the lowest cost option. -
Level funded or self-funded plans
These give you more control over your health plan design and can help save on costs. They offer flexibility while still providing good coverage for your team. -
Individual Coverage Health Reimbursement Arrangement (ICHRA)
Unlike a group plan, in this option, businesses provide employees with a tax-free allowance to cover their health insurance costs, offering more personalized coverage and potential savings.
"With health insurance being one of my biggest costs, finding ways to provide great health benefits to my employees while managing these expenses is one of my top priorities."
Phoebe Bishop
Chief Financial Officer, ROBRADY design
Examine network strategies
A "network" is a group of doctors, hospitals and health care providers that agree to offer services at negotiated rates. Choosing the right network can help you save on health care costs.
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Why it matters
Networks allow for the negotiation of lower rates, which can lead to savings for both businesses and employees. They also promote efficient care delivery and encourage the use of high-quality, cost-effective providers. -
Types of networks
- Narrow Networks
Offer fewer provider options but often come with lower costs and better coordination of care. - High-Performing Networks
Focus on top-quality providers and can lead to improved health outcomes and cost savings.
- Narrow Networks
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Flexibility and savings
Businesses that take on more financial risk can design networks tailored to their needs, leading to significant savings and better employee satisfaction.
Engage employees in preventive care
Encouraging preventive care can boost employee health and reduce long-term health costs. Here's how to make it happen:
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Educate employees
Provide clear information on the benefits available to employees, helping them understand and use preventive services. -
Offer health screenings
Regular check-ups and risk assessments can catch health issues early, leading to better management and fewer sick days. -
Lead by example
When leaders prioritize health, it inspires employees to do the same. Open conversations about the importance of preventive care can empower your team.
Managing prescription drug costs
Prescription drug costs can significantly impact health insurance expenses. Here are some strategies to help you save:
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Encourage the use of low-cost drugs
Promote the use of low-cost and generic drugs. These options are often just as effective as brand-name drugs but cost less. -
Choose the right Pharmacy Benefit Manager (PBM)
Carefully select a PBM that offers transparent pricing and good rebates. This can help manage costs and ensure you get the best deals. -
Optimize utilization management
Implement strategies to improve adherence to prescribed medications. This can include prior authorizations and step therapy to avoid unnecessary costs.
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