Vladimir St. Phard, President of Customized Benefits Solutions, Inc. also provides education for business owners with his eNewsletter. The following article about cost shifting initiatives to reduce benefit costs is from his December 2009 eNewsletter.

Cost-Shifting Initiatives In an effort to reduce benefit costs, many employers are implementing the following cost-containment strategies for 2010:

Rewards For Good Health Offer financial incentives to employees who have healthy habits and lifestyles or those who participate in wellness programs at work. Penalize workers with higher premiums for engaging in unhealthy activities such as smoking. Offer discounted rates for those who participate in wellness programs and maintain good health.

Preventative Care Benefits Offer full coverage for employees who seek preventative medical care and preventative drugs without a deductible, including vaccinations, exams and screenings for diseases such as breast, colon and cervical cancer, and blood pressure and cholesterol.
Onsite Health Centers Offer onsite health centers and staff health coaches to provide advice on personal health needs.

Catering to Individualized Needs Offer voluntary benefit options that meet personal and family needs such as homeowners, automobile and group life insurance. Also, offer discounts on vision, dental, massage therapy, chiropractic care, health club memberships and weight-control programs.
Communication Tools Provide online tools for employees on health education and estimation on their health care expenses.
Health Care Savings Accounts (HSAs) Offer HSAs with a high-deductible health plan (HDHP) as a way to promote consumerism and reduce costs. Reduce plan options.

Analyze Dependent Coverage Pay close attention to the spouses and dependents that employees enroll for benefits. Some companies require employees to pay higher premiums if their spouse can obtain health coverage through his/her employer. Conduct an eligibility audit to prove that dependents are considered legal dependents and remove ineligible dependents from the plan.

Align Your Goals Weave business goals with health goals and devise a way for individuals or departments to lose weight, start exercising and/or stop engaging in unhealthy habits. Utilize marketing techniques that will motivate employees to take action.

Co-insurance Instead of having employees pay a copayment of $10 or $15, require them to pay a percentage of their health care expenses (known as co-insurance). This may make your employers more aware of their expenses as well.

Encourage the Use of Generic Drugs Suggest that employees utilize the generic form of their prescriptions (if available) to save your organization and them money.

Take time this year to ensure that you are saving as much as you can be. Implement these new health options to reduce costs and have a healthier workforce.

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