How to Take Control of Rising Healthcare Costs for Your Company

Every year, employers across the country brace themselves for the dreaded health plan renewal process—what I like to call “the hamster wheel.” About 60 days before your renewal, you receive an update from your insurance carrier. The news? Rates are going up—again. And the options? Either cut benefits or accept a steep increase with little to no explanation. Sound familiar?

You’re handed a report highlighting your top 10 claimants, none of which you had visibility into throughout the year. You’re told that sticking to “in-network” providers will save you money, but in reality, those agreed rates are often just a discount on hyperinflated numbers. The result? You and your employees continue to pay more each year, while the costs are growing faster than most other expenses in your business—even with inflation already running hot.

The real question is: how do you break free? Below are six actionable steps you can take to control your healthcare costs and improve your employees’ experience.

Six Ways to Take Control of Healthcare Costs

1. Work with an Aligned Advisor

Traditional advisors are incentivized to increase your premiums—they earn more when your costs rise. To flip the script, you need an advisor whose incentives align with your goals. That means working with someone committed to lowering your costs, not passing along a higher percentage increase. The right advisor helps you build a sustainable plan that puts you in control from day one.

2. Partner with a Transparent Third-Party Administrator (TPA)

You need complete visibility into your healthcare plan data to make informed decisions. A transparent TPA shares detailed cost information with you—without violating HIPAA compliance. This insight allows you to see exactly where your dollars are going and uncover cost-saving opportunities. A lack of data is like driving blindfolded; with the right TPA, you finally have a clear view of what’s driving your expenses.

3. Use a Pass-Through Pharmacy Benefit Manager (PBM)

Most pharmacy rebates are funneled back to your insurance carrier—not to your company. This is where the biggest financial games are played. A pass-through PBM ensures all rebates flow directly to you, resulting in significant savings. If your advisor isn’t already helping you navigate PBM options, it’s time to rethink your partnership.

4. Make Healthcare Navigation Simple for Employees

Navigating healthcare can be overwhelming—especially when employees are sick or stressed. Simplify their experience by providing a single point of contact for all healthcare questions and needs. A streamlined navigation system reduces confusion, minimizes complaints, and ensures employees get the care they need without friction. Happy employees lead to better outcomes—and fewer costly claims.

5. Ensure Employees Have Easy Access to Care

Employees need convenient access to care—and not just through traditional networks. Alternative models, like Direct Primary Care (DPC), can provide faster access, improved outcomes, and lower costs. Access to care shouldn’t be used as a way to hide expenses—the more transparent and accessible your plan, the better it will perform for your workforce.

6. Invest in Employee Resilience and Mental Health

When employees are stressed, anxious, or burnt out, their health and productivity suffer—and so do your healthcare costs. Mental health issues can lead to poor lifestyle choices, chronic conditions, and increased claims. Providing resilience training and mental health resources creates a healthier, more productive workforce and reduces long-term costs.

Courage and Active Plan Management: The Keys to Breaking Free

Many of these strategies may run counter to what you’ve been told by traditional advisors. Many employers feel helpless, like you don’t have any other option. But here’s the good news: The best healthcare isn’t necessarily the most expensive. With active plan management and a little courage, you can build a plan that benefits both your employees and your bottom line.

If you’re tired of the endless cycle of rate hikes and are ready to get off the hamster wheel, now is the perfect time to start planning for a better, more cost-effective healthcare solution.

Ready to Take Action?

Let’s have a conversation about how to improve your healthcare strategy—without sacrificing benefits or ballooning costs. You don’t have to wait until renewal season to take back control. Break free from the old system and create a plan that works for both your company and your employees.

Contact us today to explore how we can build a better future together.