Question

What are some ways in which employers can keep the costs of providing medical insurance for employees down without eliminating this benefit?

Answer 1

Benefits to employees apart from their monthly salary is essential nowadays. Business organizations are rated according to the benefits provided by them to their employees. But, apart from being necessary, it is also an expenditure. Therefore, companies do everything in their power to bring down the cost of these benefits. Health benefits are most costly and these are some of the ways companies can bring down the cost of health benefits:

• Instead of going to Emergency sections for every minor injury, the company can invest in an on-premise clinic with a nurse constantly available to cater to the employees. This brings down the costs substantially as ER in hospitals have high fees whereas a company having a huge workforce can be caused by one or two health professionals. This will ultimately save the company a lot of money which otherwise would have been spent in the emergency sections in the hospitals.
• The company can invest in programs which help the employees in quitting unhealthy habits such as smoking. Smoking has been a prime reason for many diseases including early deaths. This not only affects the productivity of the employees due to high sick leaves but a substantial amount of working hours are lost due to smoking breaks taken by the employees. By encouraging employees to quit smoking, the company can increase productivity, reduce breaks in working hours, sick leaves and bring down the costs of health benefits provided to the employees.
• There are many discounts offers the company can avail for pharmaceutical products such as medicines. Wholesalers and retailers have been known to offer attractive discounts drug programs to companies. These discounts are available on generic as well as over the counter drugs. This helps in bringing down the cost of health benefits.
• A company can invest in the gym and other sports facilities at office premises or can make available to their employees' gym memberships at discounts. These promote healthy living among employees, bringing down the costs of health benefits as well as increasing the productivity and overall health of the employees.