Soaring health insurance premiums and rising out-of-pocket costs are creating widespread angst as one out of three Americans now views these costs as their single greatest financial burden. For employers competing for top talent, understanding this angst is important given that cost-shifting, the passing of more health care costs onto employees, has been widely adopted as a cost saving tactic. In fact, over the last five years, the percentage of covered employees enrolled in high-deductible health plans has tripled. And given continued healthcare cost inflation, this trend is likely to continue.
So if you have or are considering moving to a high deductible or consumer-directed health plan for your business, you are not alone. And you can argue you are no worse off than your competitors when trying to attract and retain top talent.
But what if you can turn your consumer-directed health plan into competitive advantage?
How? Implement a Health Empowerment Arrangement (HEA) that combines group health insurance, the HealthJibe mobile app, and a Section 105 Health Reimbursement Arrangement (HRA) to empower your employees to take control of their health and wellbeing and stabilize health care costs for you and them.
An HEA is a modern solution for consumer-directed workplace benefits that makes it possible to implement a more cost-effective base health benefit plan while mitigating the impact of higher deductibles and cost-sharing on employees, and stabilizing costs over the long term.
The HEA acts as a deductible buy down insurance product where deductible allowances are tied to healthy activities that are proven to stabilize costs over the long term including:
preventive care adherence
emerging risk awareness (metabolic syndrome)
lifestyle habit monitoring (physical activity, weight, blood pressure, sleep)
This strategy lowers the employer's cost to offer health benefits while ensuring that any deductible incentives that help employees offset increased deductible expenses also accrue to the benefit of the employer through stable health care costs, lower absenteeism and presenteeism, and a more productive workforce.