Companies across the country continue to face rising healthcare costs, which directly impact the cost of providing employee health insurance. Higher medical claims lead to increased premiums, making it more difficult for employers to manage healthcare expenses while maintaining valuable benefits for their employees.
One of the most effective ways to help control these costs is to encourage require employees to take advantage of preventive care services that can identify and address health issues before they become serious and expensive.
Preventive care is covered at no cost to employees under your health insurance plan, yet many employees—especially men—do not take advantage of it.
I recommend requiring all employees enrolled in the company’s health insurance plan to complete their annual preventive exam. This requirement would apply to both men and women.
Employees who do not complete their annual preventive exam would receive a reduced employer contribution toward their health insurance premium (for example, 50% of the normal company contribution).
This can be implemented through a Health-Contingent Wellness Program that has only one requirement: completing an annual preventive exam. No additional health screenings or wellness activities would be required.
Encouraging preventive care benefits both employees and the company. Annual preventive exams can help identify health issues early, when they are often easier and less expensive to treat. Early detection and routine care can lead to healthier employees, fewer serious medical conditions, and lower healthcare costs over time. By increasing the use of preventive services, companies may experience fewer high-cost claims, improved productivity, and better long-term control of their health insurance expenses.
Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.