In addition, employees in poor health have decreased work attendance and performance, and lower quality of life. Healthy employees are an extremely valuable asset for employers.
When the job market is tight, health benefits may be the deciding factor for good talent to choose to work at your company over another.
Health care cost drivers
Health care costs are growing for a variety of reasons.
Many of us are aware that the cost of health care procedures is rising. New medical devices, diagnostic tests, and medical imaging tools have revolutionized medicine, and the cost of medical care along with it.
Another factor in the rising cost of health care is the increased use of prescription drugs. People are using more of the newer, more expensive drugs. This is due in part to the availability of “lifestyle” drugs to treat conditions such as nail fungus, obesity, and hair loss. In addition, pharmaceutical companies advertise directly to consumers, prompting consumers to ask their doctor for a prescription. Further, chronic conditions account for a significant portion of pharmaceutical and health care spending.
In the past, medical providers determined the fees for their services. But with the domination of managed care plans, providers are forced to negotiate their prices lower. In response, the industry has moved toward consolidated medical practices, in many cases monopolizing procedures within a geographic area. These larger providers have greater ability to negotiate with managed care plans that wish to provide convenient care options for their members. Health care costs, and thus employee benefit costs, have been increasing at a very high rate for nearly a decade.
These cost factors are why your benefits package is so important for your current and prospective talent pool. Cost increases are outpacing inflation, making health care a growing burden and major financial consideration for consumers.
How we help
We help you find the best value within your budget constraints. This starts with the first step in The Viti Needs Assessment Funnel™ (NAF), where we gather your information in an easy, streamlined way. We accomplish this with technology resources such as online enrollment. Our clients also find that our compliance consulting adds value to the process.