The cost of employee health insurance continues to rise annually. However, having employees cover a larger part of the premium is not the best idea since it can lead to dissatisfaction and lower retention rates. Here are four strategies to enhance coverage.

The Issue Employers Face
Organizations must take a holistic approach when building the benefits package they provide workers, as insurance expenses are expected to increase next year. All companies are different, as are their employees. Thus, the type of coverage they require will depend on their needs. Employers want to offer the best packages to their workers, but many smaller businesses can’t afford the high associated costs.

This is why strategies that enhance the employee’s package through lowering the fees or increasing the quality are vital. Otherwise, companies are left with two choices, neither of which is a good idea. The first one is decreasing the amount of benefits workers receive and the second is to let staff cover a bigger portion of the costs.

Both options could make employees think the company does not care about them. This could lead to a decline in productivity and the quality of work since happy workers are 20% more productive than their unsatisfied colleagues. This could lead to them looking for a new place of employment, especially if they feel the organization does not support them.

1. Think About Value When Selecting a Plan
According to research, employers contribute 74% more to an insurance package if the employee has a degree. However, people want packages that offer more than the bare minimum. 

Thus, when choosing health insurance coverage, one of the best strategies is to consider its value. Often, employers tend to select plans that are the least expensive. However, these options don’t provide many benefits. Sometimes, they offer so little value that they barely even support workers. 

Instead of letting price be the deciding factor, think about the value it will provide. Companies that take this route can create plans that offer a better balance between the benefits it provides and the cost. 

The needs of workers are all different. One way for a company to understand what people want is to conduct surveys. This way, employers have a broader idea of what their employees expect from health insurance packages. Businesses can then choose coverage that fits those requirements. The main idea is to provide workers with flexible options that offer excellent value while not costing a fortune.

Companies should also consider eliminating certain providers to increase the quality of the network plan. While this might sound like a straightforward option, not many organizations know about it.

Businesses should analyze current providers in their plan networks and look for those with poorer quality or excessively high costs. They can drop them to add more value. Companies must work with their plan administrator or insurance supplier to do this. They will require additional information about the providers, such as the associated fees. Organizations that carefully consider the health suppliers they partner with can enhance the overall quality of their network.

2. Include Tiered Networks and Centers of Excellence
The next strategy businesses can employ to enhance employee health insurance is to offer tiered networks. They better cater to the different needs of employees. 

Companies should divide the health care providers offered in the insurance plan into different groups. The categories a business should select can depend on that organization and the needs of its employees. However, most places that adopt this practice tend to divide the providers into two groups — the quality of care and how cost-effective it is. This offers workers more flexibility in choosing the package that best works for them.

In addition to tiered networks, companies can also select certain health care providers as centers of excellence, which are facilities people use primarily for specific treatments, procedures or complex surgeries. The organization can choose these centers based on increased service quality and lower associated costs.

Afterward, the company should encourage its staff to use these health care facilities for select procedures. This way, it can offer employees lower cost-sharing options than they can get with other in-network facilities. 

3. Implement an Employee Wellness Program
Another excellent strategy is to implement employee wellness programs. They might not directly impact the cost of staff insurance but can pay dividends in the long run. 

Health insurance works by examining the health of the person in mind and looking at certain risk factors. People in good condition will pay significantly lower premiums. 

Employee wellness programs give workers the necessary knowledge to prioritize their health and wellness effectively. In time, this can reduce many of the high-risk factors that translate to lower premiums. 

Organizations supporting and encouraging healthier behaviors could see remarkable savings for the company and its employees. In addition to lower costs, wellness programs can benefit workers in many other ways. They can help employees get necessary health screenings, immunizations and follow-up care, as well as promote effective dietary and fitness strategies.

4. Consider Additional Health Care Providers
Organizations could also consider offering alternative health care facilities. For example, many businesses have started including on-site clinics or retail providers in their plans. These options are primary for nonemergency care and can have significant cost-saving advantages.

On-site clinics can provide care for on-the-job injuries along with other services. Companies should consider what additional offerings they can include in their plans. These new types of service providers can drastically lower insurance costs and provide employees with affordable health care. 

Utilizing Strategies to Provide Value to Employee Health Insurance

Implementing strategies to enhance employee health insurance is not an easy undertaking, but it’s well worth the effort. Remember, when assessing plans, the best thing to do is to look at the value it will provide to staff. 

Organizations should carefully consider the wants and needs of workers so they can create a benefits plan that caters to various employees’ requirements. Companies that incorporate these strategies can effectively enhance the value of their employee health insurance packages.