Creating a budget for your organization can be a challenge. Even if you think you’ve planned for everything, surprise expenses can hit fast, leaving your meticulously planned budget in disarray.
When it comes to employee health benefits, nothing could be truer. Under traditional health benefits, employers end up paying a fortune toward coverage that just seems to get worse every year. And yet, annual costs continue to increase. Believe it or not, though, this is not the case with every employer.
Below are some key details behind how Remodel Health has helped employers regain and repurpose over $23 million on employee health benefits without sacrificing care or coverage.
1. Old Plans Are Expensive
Let’s face it: employee health benefits are expensive. Many groups have had to cancel their group plans altogether because they have become so unaffordable. Even with the Affordable Care Act in place, these old plans cost a lot and continually get more expensive.
Anywhere from 3 to 15 percent increases year over year at renewal time has overwhelmed the balance sheets of administrators for well over a decade. In fact, budgets are often planned backward because of it. Considering how expensive traditional plans really are is a major factor in how Remodel Health has saved $23 million dollars on health benefits. Starting with something way overpriced sets up an opportunity for significant savings.
2. Customized Employee Health Benefits
Replacing old, traditional group plans with new, individualized plans is the first step in moving away from overspending and toward better savings. This is where the dollars begin to add up over time. Because of innovations that have developed in the past 5 to 6 years, you’re no longer stuck in those traditional group plans.
With the help of the right health benefits software, you can combine self-funded elements from the employer, utilize tax-free dollars toward medical expenses, and provide employees with a streamlined shopping experience. By improving your plan design, you can upgrade the overall quality and coverage of your employees’ health benefits.
If you’re thinking this sounds too complicated, don’t worry! While these customized plans do add some complexity to the equation, when you analyze everything side by side using the right software, you can quickly evaluate where the best changes can be made.
3. Expenses vs. Exposure
There are two core components of every health benefit: expenses and exposure. Expenses are how much you’re spending, while exposure has to do with the total risk that is absorbed by the employer or the employee. One major shift that takes place when approaching employee health benefits as a strategy rather than a product is the evaluation of expense vs. exposure.
Two thirds of all personal bankruptcies in the U.S. are due to medical bills, which is ultimately a result of high exposure. Not only are we overspending on our healthcare, we’re not managing our risk well to protect our people from extreme out of pocket expenses.
Saving money on health benefits should never come at the risk of your people. There are smart ways to invest in employee health benefits without choosing “cheap” plans with high risk. By finding the right health benefits strategy, you can help employees decrease the potential risk in their worst year.
This starts by forgoing the expensive PPO Networks, ditching copays for HDHPs, investing into HSA dollars, and installing backend HRAs. Then we start looking at sharing ministry options, short-term plans, spousal plans, Medicare, Medicaid, and more. These are all part of the nuances that, little-by-little, stack up into $23 million in savings, which is put directly back into the mission of your organization.
4. Regain and Repurpose
“Savings” is just a line item on a spreadsheet. But regaining and repurposing resources back into the mission of the organization? That is something entirely bigger and better!
This is what we’re all about here at Remodel Health. We want to serve organizations well so they can reach their greatest potential.
We’re inspired by the stories of Grace College, Emmanuel Community Church and many more who, with the help of Remodel Health, have been able to save money on employee health benefits and pour back into their missions. From giving raises to staff to planting new church locations to hiring more team members — Remodel Health helps you grow your mission.
Do you want to put money back into your mission?
If you want to unlock the potential of health benefits innovation, visit remodelhealth.com/quiz for an interactive experience to discover which budget strategy will help you best replace your old and expensive group plans with customized, managed individual benefits. Your organization can be the next to save, and now is the time for change!
Important Notice: Remodel Health does not intend to provide specific insurance, legal, or tax advice. Remodel Health always recommends to consult with your own professional representation to properly evaluate the information presented and its appropriate application to your particular situation.