How to Lower Health Insurance Costs in Employer-Sponsored Plan

 We all know the cost of health insurance and healthcare costs is too high.  Nonetheless, most of us feel there is nothing we can do.

If you are covered by a government program like Medicare or Medicaid, there is little you can do to change that program individually.  If you are covered under an individual plan, there is not much you can do outside of selecting a less expensive plan which will come with skinnier benefits.

In an employer-sponsored plan, there are a few more levers that can be pulled.  It is useful to divide up the things that each the employer and employee can do to reduce healthcare costs. 

What Your Employer Can Do

1. Analyze claims data and institute programs based on the plan’s needs.
2. Help employees navigate the plan to reduce inefficient use of the plan.
3. Add incentives for employees to use the plan in its most effective form (i.e. Telemedicine visits when possible instead of high-cost Emergency Room visits).
4. Redesign the plan benefits to match the specific needs of the group. 
5. Look at alternative models such as Reference-Based Pricing.

What You Can Do

1. Use the appropriate venue of care for your conditions.
2. Educate yourself on the plan benefits
3. Shop around, especially for high cost procedures like surgeries.
4. Try a generic instead of a branded drug where possible

Reducing healthcare costs is truly a team effort.  It requires everyone taking a little time to understand their plan and using some simple best practices to ensure you are receiving value.