How do you reduce employee benefit costs?

You can reduce the cost of employee benefits by analyzing trends and implementing strategies. Here are some of the key ways you can reduce costs without harming your employees:

• Analyze employee use of programs. This will allow you to determine which programs employees are using and which ones you're wasting money on. If employees aren't using the program, it can be a good idea to cut it.

• Explore plan design options. No two employee populations are the same, so customizing the benefits plan for yours can help reduce premiums.

• Look into pharmacy offerings. When the cost of certain medications rises, it's crucial to assess lower-cost, clinically effective biosimilars. That way, you can offer the least expensive and most effective options to your employees.

• Cut administrative costs. Tools like online portals or automated messaging systems can help reduce the cost of administration for your plan. Always ensure you're keeping up to date with the most modern and cost-effective options.

• Employee education. Employees who don't understand their benefits can use them poorly, so it's important to keep them informed, knowledgeable, and up-to-date. This can be done through consulting with an employee benefits broker and proper training.

• Telehealth and medicine. Encouraging employees to use virtual health services can provide easy, quick, and convenient access to healthcare providers while also reducing costs on your end.

• Design a wellness program. Wellness programs such as gym memberships, healthy eating programs, and stress management resources can provide employees with the positive environment they need to stay mentally and physically healthy, among other benefits.