How employee health impacts insurance costs

Almost everyone has a compliant with the healthcare system in America. The fact is that healthcare costs wouldn't be so high if people will eat right and exercise on a daily basis. The amount of money we would save is around $7 billion! While individual Americans are feeling the sting of increased healthcare costs, employers are also being impacted. Companies also want to get the best healthcare plan out there, but they cannot afford the higher costs. This is why a lot of employers have turned to high-deductible insurance plans. A high deductible plan offers cheaper rates and it is manageable for the employers. The downside is that they will still pay more money for healthcare if they have a lot of employees that are considered a high-risk.

Most group insurance plans require a 12 month contract. At the end of the contracted term, new policies and rates are disbursed to the employer and it is up to them to determine what will change or remain the same in the coming year. As with any new contracts, it's always best for employers to research other companies, receive at least a couple bids from competing insurance companies and then make a decision based on that information.

According to recent studies, employers pay an average of $3,785 for single coverage and $8,824 for family coverage per year. Many companies pass on a significant portion of that rate to their employees, and as budgets get tighter, those portions will become higher for employees. Employees that are considered a high-risk (like smokers and overweight employees) are often looked at as the culprit for the increased expenses. Companies often turn to them to front more of the bill for insurance since they are the reason why the premiums increased.

Passing the buck to the employees is one way to re-coup your money but it can also hurt you. You could lose some great employees to your competitors because they are charging lower rates for their healthcare costs. To avoid this situation from occurring, employers can implement a wellness program that offers incentives instead of penalties.

Wellness programs do work and they are a great way to get your employees to lose weight and improve their health. You must offer them some type of reward for their hard work or else they won't have any motivation to do it. If you have a HSA (health savings account), offer to contribute a higher amount to the HSA if the employees will take steps toward improving their health. You will still pay less in healthcare costs and the employees will be satisfied since you are contributing more money than they are.

Another great incentive is to provide additional vacation benefits to the employees that participate in the program. Some companies offer large cash prizes while others offer all-expense paid vacations. Whatever incentives you choose, make sure they are attractive to your employees. Offer small incentives to the employees that make progress with the wellness program after a few weeks. This is a great way to keep them motivated and to inspire other employees to participate in the program to get in shape.

Hire a fitness expert to come in and show your employees how to exercise while they are working and what types of foods to snack on. Making steps toward improving your health is not as hard as it seems. It is far easier to exercise now and improve your health before you are diagnosed with a serious illness and you have to face the consequences for your lifestyle choices. Make sure your employees are exercising daily and that they are improving their health now before its too late!