clicks — no waiting times or driving to a clinic . Additionally , individuals will not need to take large chunks of time off work , allowing for greater productivity . As such , telehealth solutions are often much less expensive than a typical in-person doctor visit . Even the Centers for Medicare and Medicaid Services ( CMS ) acknowledges the usefulness of telehealth services , seeking to expand access .
Employers can consider adding telehealth services into their plan designs . In some cases , it may be cost-efficient for employees to schedule a virtual health visit before an in-person appointment , under certain circumstances . In any case , having a telehealth option expands access to care and lowers expenses for everyone . 5 . Consider Plan Funding Alternatives
A more drastic option for reducing health costs is restructuring how plans are funded . For instance , a self-funded plan may be more cost-effective than paying a monthly premium for a fully insured plan . Other options include level-funding or reference-based pricing models , each of which carries its own set of administrative rules and legal constraints .
Funding decisions should not be taken lightly and should be based on several factors , such as the size of an organization , risk tolerance and financial stability . Employee financial stability should also be considered , especially while the effects of the COVID-19 pandemic can still be felt . Employees may not be able to bear large premium increases , constraining some plan funding flexibility options .
Historically , employers have shifted costs onto their employees ( usually through higher premiums ) as a way to reduce spending . However , that trend is not expected to be widespread in 2022 . Considering the tight labor market and how many individuals are struggling financially due to the pandemic , employers will likely be hesitant to shift too much of the burden . Doing so may cause employees to seek other jobs or simply forego preventive care , which can lead to chronic conditions and higher future health care costs .
Employers have a variety of ways in which they can help contain health care expenses . Choosing the right method will depend on unique employee populations and budgets .
Reach out today for help strategizing your best options .
Benjie Bates is President of Bates Hewett & Floyd , a full-service insurance agency working with individuals and businesses across Northeast Florida and Georgia .
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