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Employers Shielding Workers from Increasing Health Care Costs

November 13, 2019

The average cost of health benefits rose 3 percent per employee this year, bringing it to a total of $13,036 a year. 

Most employers do not want this financial burden to fall on their employees, so they're trying health care cost management strategies to keep the cost down. However, not all employers can afford to absorb those increasing costs and are left with no choice but to shift those extra costs to their employees, according to Mercer's National Survey of Empployer-Sponsored Health Plans 2019. 

The survey that Mercer conducted included findings from over 2,500 employers, and revealed that the average individual deductible in a PPO offered by large/mid-sized employers only rose $10 in 2019, to $992. Meanwhile, smaller employers who typically have less ability to absorb high cost increases and fewer resources to devote to plan management, the average deductible rose by more than $250. 

Larger employers are also able to give their workers more plan choices other than just a high-deductible plan with a health savings account. According to the survey, the percentage of employers with 20,000 or more workers that offer only a high-deductible account-based plan fell from 22 percent to 16 percent. 

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“This doesn’t mean HSA plans are going away, but to meet the various needs and budgets of today’s five-generation workforce, employers are increasingly offering an array of health benefit plans,” says Tracy Watts, Mercer’s national leader for U.S. health policy. “In fact, many employees who do the math at open enrollment find an HSA is a smart financial move. But for those with little savings or significant health issues, another plan might be a better fit.”

These plans remain popular, in fact, enrollment in high-deductible account-based plans rose from 33 percent of all covered employees last year to 36 percent in 2019. These plans are offered by 71 percent of large and midsize employers, up from 68 percent in 2018, and by 37 percent of small employers.

Such plans are still popular: enrollment in high-deductible account-based plans rose from 33 percent of all covered employees last year to 36 percent in 2019. These plans are offered by 71 percent of large and midsize employers, up from 68 percent in 2018, and by 37 percent of small employers.

 

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What's the solution? Health care costs continue to rise, leaving both employers and employees at a loss. Medliminal can reduce health care spend for employers and employees alike.

Medliminal specializes in medical cost containment and offers our clients focused and innovative solutions and services through our advanced Robotic Process Automation (RPA) technology, known as H-CAT™. This technology coupled with our trained medical staff identifies non-compliant charges for all payers on a national level and allows Medliminal to act as a medical advocate for the individual.

How does HSP help employers?

The Health Savings Program is designed to lower the overall healthcare spend for employers. By identifying non-compliant charges, the HSP will reduce the amount that employers spend on unnecessary medical costs. On top of that, employers have access to the Health Savings Dashboard (HSD) featuring customizable analytics. With this tool, employers are able to pull custom reports and track medical cost savings analytics by division, location or medical facility.

How does HSP assist employees?

One of the trademarks of the Health Savings Program is the Dashboard feature. Employees will have access to the secure online Dashboard where they can submit bills for review, view the status of their bills, learn about their state’s health care laws, and more. The Dashboard will also be available as an app, where users are welcome to upload their bills by simply submitting a photo taken on their mobile device. Once a bill is submitted, employees will receive updates throughout the process and will be notified when the review is complete.

For more information about how Medliminal can save you money, click on the link below!

 

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