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  • As health care costs keep rising, both employees and employers are looking for ways to manage these expenses and make coverage more affordable. However, balancing these growing costs while ensuring employee satisfaction can be challenging for employers. To achieve this balance, employers can implement a variety of strategies to effectively lower health care costs while keeping employees happy, healthy, and productive. 

    What Do Health Care Costs Include

    Health care costs include all expenses related to maintaining or improving an individual’s health. While many services can fall under the umbrella of “health care”, these costs typically include accessing and utilizing health care services such as prescriptions, health insurance, doctors’ visits, deductibles, copayments, premiums, and more. While offering health care and health benefits can be expensive, they are essential to attract and retain top talent. Continue reading to learn a few ways you can reduce your health care costs.  

    Invest In Prevention

    Prevention is the best medicine, especially when it comes to health. By encouraging employees to focus on their health, either through developing healthy habits or scheduling regular check-ups, you help them focus on their current health and avoid future health issues. Regular check-ups, screenings, vaccinations, and telehealth appointments can significantly reduce long-term health care costs and prevent more serious and expensive conditions down the line. 

    Implement Wellness Programs

    Wellness programs are designed to enhance the health and wellness of individuals. They can focus on physical activity, nutrition, stress management, and mental health. According to a recent study, 91% of companies reported that their health care costs decreased because of their well-being program. These programs can include fitness challenges, stress management workshops, financial wellness resources, nutrition assistance, and more.  

    By fostering a culture of wellness, employers can reduce absenteeism, improve productivity, and increase morale. When employees feel supported, they are more likely to take better care of themselves and adopt healthier behaviors, which can lead to reduced use of health care benefits and ultimately lower health care costs. 

    Offer Telemedicine Services

    Telemedicine has expanded in the past decade, effectively transforming the health care landscape. Telemedicine provides employees with the ability to have a doctor’s appointment online. It provides greater efficiency and flexibility for physicians and patients alike. Employees are able to receive help for minor ailments and follow-up appointments, and receive faster care than going in person, reducing employee absenteeism and improving productivity. The convenience of telemedicine saves employees time by eliminating travel and waiting periods, and also reduces the need for time off work and costly co-payments. 

    Implement Additional Savings Accounts

    Another effective way to lower health care costs is by offering a Health Savings Account (HSA). An HSA is a special type of account that allows individuals to save money specifically for qualified health care expenses. With an HSA, contributions can be made tax-free as long as the funds are used for eligible medical expenses, which include deductibles and copayments. However, insurance premiums are generally not considered qualified medical expenses. To be eligible to contribute to an HSA, one must be enrolled in a high-deductible health plan (HDHP). These accounts can lower premium costs for employers and allow employees to save pre-tax dollars for medical expenses, giving them more control over their health care spending. 

    How CPEOs Lower Health Care Costs

    Reducing health care costs is a growing priority among business owners. While many business owners are reducing their coverage options to save money, this can leave employees vulnerable to higher health care-related expenses. Managing employee health plans isn’t an easy task, especially if you’re managing it alone. Luckily, Group Management Services (GMS), a certified professional employer organization (CPEO), can help you manage your employee benefits and the associated costs. 

    Our benefits experts can help you make the most of your benefits while saving you money. We provide expert guidance on health plan design and ensure compliance with the Internal Revenue Service (IRS). With our HSA and Federal Spending Account (FSA) administration services, we can simplify your account management.  

    We also provide comprehensive group health insurance plans that can reduce your premiums and deductibles. GMS represents more than 50,000 employees, which allows us to help businesses purchase group health insurance at rates up to 24% lower for employee premiums and up to 15% lower for family premiums compared to the U.S. average. 

    Employee health care and benefits are not easy to manage. That’s why having a knowledgeable partner to walk you through your options is essential. Learn more about how GMS can help simplify your health care and benefits today.  

  • Governor Ron DeSantis signed an executive order on Friday, July 8th at Cape Coral High School to increase transparency for prescription drug prices in Florida. The order would help make pharmacy benefit managers and third-party administrators of prescription drug programs, accountable when managing prescription drug benefits for insurance companies.

    Gov. DeSantis’s goal in signing this order is to create lower costs for prescription drugs in Florida. DeSantis says, “With food and gas costs on the rise, addressing the pharmaceutical costs is one area I can make a difference in.” He continues to state, “This executive order requires accountability and transparency for pharmaceutical middlemen when doing business within the state, thereby reducing the upward pressure on prescription drug costs.”

    The order directs all executive agencies to include the following in future contracts:  

    • Prohibit spread pricing 
    • Prohibit reimbursement callbacks 
    • Include data transparency and reporting requirements 
    • Review all rebates, payments, and relationships between pharmacies, insurers, and manufacturers 
    • Amend all current contracts they can with the same provisions 

    Additional Programs In Progress

    During the Drug Transparency Order signing, Gov. DeSantis’ administration is working on the Canadian Prescription Drug Importation Program. This will allow prescriptions from Canada to be imported when their prices are significantly lower than those in the United States. The Food and Drug Administration (FDA) has been reviewing this for the past 600 days. 

    By developing new programs after the Drug Transparency executive order, Gov. DeSantis’ administration can find effective ways for Florida residents to save money.

    Navigating Prescription Drug Transparency

    By partnering with GMS, you gain access to a handful of resources beneficial for your business. At GMS, we have a designated Rx specialist who works with your employees to find them the most cost-effective options. Our promise is to make your business operations simpler, safer, and stronger. Learn more by contacting us today.