Many insurance industry analysts are expecting an increase of 6.5% to 9% in health care insurance costs in 2026. Increasing drug costs and hospital cost pressures are among contributing factors driving up group health insurance costs.
Sales Tips for Brokers: Cost-Saving Strategies That Add Value
So, how can you help your clients save? Below are five cost containment strategies to consider.
1: Increased promotion of preventive care. Your clients may want to encourage employees to take advantage of the preventive care services in their group health plan. Affordable Care Act (ACA) compliant coverage include nearly 20 preventive care benefits. These include screenings for blood pressure, cholesterol, diabetes, cancer, and other conditions. Counseling is also covered for obesity, diet, and alcohol and tobacco use. Promoting these services early can reduce long-term group health insurance costs by catching issues before they become chronic or costly.
2: Offering HDHPs and Health Savings Accounts (HSAs). High-Deductible Health Plan sales have grown significantly during the past 20 years. In 2021, more than half of private-sector employees in the U.S. enrolled in an HDHP. The reason? Lower monthly health insurance premiums (as compared to traditional health plans). When paired with a HSA, there are also tax advantages. Contributions are tax deductible from employees’ gross income. Interest and investment growth are not subject to federal taxes. Funds withdrawn for eligible medical expenses (like deductibles, copays, etc.) are tax-free. Plus, unlike Flexible Spending Account funds, HSA amounts can roll over from year to year. They are not lost if not used within a plan year. The funds remain available to participants for other years.
3: Expanding use of telehealth and disease management strategies. Employers can reduce costs by encouraging increased use of telehealth. Remote monitoring and disease management practices can also help. The latter supports lifestyle change and ongoing patient education and care coordination. These are especially important for patients with diabetes, hypertension, and asthma. Telehealth also improves patient engagement. It increases patient access to health care specialists. That, in turn, can lead to better health outcomes.
4: Improving price transparency. Many people don’t know this, but federal regulation requires pricing information be available to patients. This includes negotiated rates and costs for 300 shoppable services. These include X-rays, lab services, surgical services, outpatient doctor visits, and colonoscopies. Hospitals must post standard charges for 300+ services in a consumer-friendly format. Services must be searchable and in-network and out-of-network rates for covered services.
5: Educating employees drives more informed health care decisions. Making simplified benefit communications (with plain language and useful graphics) also helps employees. They can better understand what’s available to them. Other tools are online portals, webinars, and personalized guidance. All foster greater understanding of benefits. They also nurture a culture of health through wellness and related programs.
Help Clients Explore Their Options
Offerings differ, but most insurers and health plans offer tools and resources to help you educate clients about ways they can save. It could involve switching to different plan types or networks. Your W&B rep can help you sort it all out. If you’re not already working with us, it’s easy to get started. Call 800-869-6989 or register online today.
