As healthcare costs continue their upward trend, CFOs are desperately seeking innovative strategies to curb premium rates and regain control over their benefits expenses. Here are a few solutions companies are implementing to achieve the much needed change:

• Multiple Employer Trusts –Small to mid-size organizations are taking advantage of the law of large numbers by joining multiple employer trust programs. Especially for employers in a favorable industry with a young, healthy demographic, a trust is a viable alternative to playing in the traditional insurance market on your own.

• Captives – This self-funded solution puts the employer back in the driver’s seat when it comes to covering claims and leveraging utilization data. In a captive, member companies are collectively responsible for paying for claims, but also reap dividends when pooled funds go unused.

• Prescription Drug Renegotiation Strategies – Prescription drug costs represent 15-20% of healthcare expenses for most companies and are the fastest growing cost driver. By decoupling and renegotiating pharmacy contracts, an effective broker can ensure lower prices and eliminate hidden fees. In many cases employers have seen a 5:1 return on their investment.

When it comes to employee health benefits, one strategy does not fit all. Partnering with a skilled insurance broker is a key strategy in evaluating all available solutions to regain control over healthcare costs.

Return to Index