Risk & Business Magazine Bowen Miclette & Britt Spring 2017 | Page 29

BENEFIT COSTS
BY: PETER SULLIVAN
BOWEN MICLETTE & BRITT
Employers Demand New
Strategies To Cut Benefit Costs
N
ow more than ever,
employers are demanding
new ways to cut benefit and
healthcare costs. While
the future of accessing the
healthcare system through traditional
employer-sponsored plans remains
uncertain, one fact remains — employers
must continue to maintain a competitive
advantage while recruiting and retaining
top talent.
The effective management of benefit-
related costs requires resources including
analytics, legal, compliance, risk
evaluation, and wellness management.
HR staffs are burdened with more
responsibilities than ever, so brokers need
to provide the support that is so critical
to an effective cost management strategy.
In order to create and maintain value
in a benefits plan, along with improving
the health and productivity of an
employee population, HR and financial
professionals within an organization
need to understand the factors that drive
cost and employee behavior. Additionally,
brokers need to have the knowledge and
experience to offer a multidimensional
approach to managing benefit plans and
their associated costs.
Traditional and nontraditional markets
need to be evaluated in order to
provide customization, flexibility, and
negotiating leverage. Employers have a
fiduciary responsibility to understand
the components that are included in a
benefits plan and to make sure that they
have the most appropriate combination of
benefits and cost.
Pharmacy Benefit Managers, or PBMs,
provide the drug portion of a medical
plan. Self-funded plans allow this feature
to be interchangeable, which can provide
significant cost reduction opportunities.
Some recent studies suggest that the
significance of high-deductible health
plans (HDHPs) and health savings
accounts (HSAs) has started to plateau
and that these options are not a “silver
bullet” in controlling long-term plan
expenses. These studies have also
revealed that some members avoid
initial treatment because of the cost,
which leads to more chronic and costly
conditions down the road. That is why a
constant analysis needs to be performed
to determine whether or not plans are
being used effectively and plan objectives
are being met. If they are not working
effectively, a communications strategy
needs to be initiated to provide the
education necessary to get utilization
back on track.
Another problem affecting benefits costs
today is a lack of understanding of how
to use medical benefits, how to “shop”
for the most affordable service, and how
to find the best quality provider. Most
people know how to shop for a TV or car
but not for health services.
Telemedicine is also an evolving trend
that offers cost savings as well as
convenience. However, the availability of
this service needs to be communicated
more effectively. Results of a recent
survey, for example, found that even
when included in a benefits program,
many plan participants are unaware of its
availability.
The professionals in the Bowen, Miclette
& Britt benefits group understand the
significance of being actively involved
with our clients, month in and month
out. We know that we need to offer the
tools necessary to provide information,
incentivize behavior, educate plan
participants, improve health, and
ultimately reduce costs. We recognize the
substantial investment that our clients
make in their benefit plans, and we want
to make sure that we help them manage
that investment as effectively as
possible. +
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