Reduction in Expenses for Business Health Care Benefits: Smarter Solutions for 2025

Suppose there is one topic that keeps CEOs and senior executives awake at night. In that case, it is finding the balance between offering excellent healthcare benefits to employees and keeping the company’s expenses in check. Healthcare costs have been climbing for years, and businesses across the US are feeling the pressure. According to a report, the average annual premium for employer-sponsored health insurance was $8,431 for single coverage and $23,968 for family coverage, which can become a daunting business expense.

But here is the good news: reducing expenses for business healthcare benefits does not have to mean slashing coverage or sacrificing employee satisfaction. In fact, with the right strategies, you can cut costs while maintaining—or even improving—the quality of benefits you offer your team.

Expense to Profit partners with business executives to proffer solutions in lower overhead costs while improving their bottom line. We will explore innovative ways to optimize your healthcare benefits, trim unnecessary expenses, and ensure your employees stay happy, healthy, and productive—without breaking the bank.

What are the strategies to implement?

Implement Wellness Programs

Wellness programs are becoming a cornerstone of modern healthcare strategies, offering a win-win solution for employers and employees. A report shows roughly 51% of employers with 50+ workers provide a wellness program.

It is already a proven strategy aimed at improving the overall health and employees’ well-being, which leads to fewer insurance claims, reduced absenteeism, and increased productivity. A healthier workforce is not just good for morale but also for your bottom line.

Chronic conditions like diabetes, heart disease, and obesity account for a significant portion of healthcare costs. By promoting healthier lifestyles through wellness programs, businesses can help prevent these issues before they arise.

To make this work, all you need to do is tailor these programs to meet your workforce’s specific needs and interests. You can also offer rewards for active participation, such as gift cards, extra vacation days, or discounts on insurance premiums.

Explore High-Deductible Health Plans (HDHPs)

High-Deductible Health Plans (HDHPs) have become cost-effective for businesses and employees. According to the Bureau of Labor Statistics, 51% of private industry workers participated in HDHPs in 2023, with speculations that the percentage will increase over time. These plans feature lower monthly premiums in exchange for higher deductibles, making them a smart choice for any business looking to reduce health care costs.

When paired with Health Savings Accounts (HSAs), HDHPs offer additional advantages, empowering employees to manage their medical expenses in a tax-efficient way. By offering HDHPs, you can reduce your healthcare expenditures, freeing up resources for other strategic initiatives. HSAs encourage employees to become more engaged in their healthcare choices as they manage their expenses and weigh cost-benefit considerations.

You need to provide resources and workshops to help your workers understand the benefits of HDHPs and how to maximize their HSAs.

Leverage Telehealth and Virtual Care Services

Telehealth and virtual care services revolutionize how a business can approach employee health care benefits. According to Statista, almost 9 in 10 patients in the US reported that telemedicine has made it easier to get the care they need.

By enabling employees to consult health care professionals remotely for minor illnesses, routine follow-ups, and even mental health support, these services provide a cost-effective and efficient alternative to traditional in-person visits.

Telehealth offers multiple advantages for both employers and employees:

• Lower Costs. Virtual consultations are significantly cheaper than in-person visits, saving money for employers and reducing out-of-pocket expenses for employees.
• Enhanced Accessibility. Employees can access care from anywhere, eliminating the need for time off work or travel to a doctor’s office. This is especially beneficial for those in remote areas or with limited mobility.
• Reduced Absenteeism. With quick access to care, employees can address health issues sooner, leading to faster recoveries and fewer missed workdays.
• Comprehensive Care Options. Telehealth is not limited to physical health; it also supports mental health through virtual counseling and therapy sessions, meeting a growing need for accessible mental health resources.

These days, telehealth has grown beyond simple consultations. Many providers now offer wearable health trackers, specialist access, and pharmacy integration. Telehealth is a cost-effective way for business owners to enhance healthcare benefits without raising premiums. For workers, it provides a convenient and modern solution that prioritizes their time and well-being.

You can work with reputable telehealth platforms to ensure employees can access a broad network of qualified professionals.

Consult With CalmHR

CalmHR has established itself as a trusted business ally when managing rising healthcare costs. By leveraging innovative programs like their signature Manage to Zero™ (MTZ) solution, CalmHR helps organizations tackle skyrocketing premiums while enhancing employee satisfaction.

The MTZ program is designed to cut costs for employers without changing medical carriers. At the same time, it reduces out-of-pocket expenses for employees, creating a win-win scenario.

In a recent case, CalmHR helped a non-profit organization facing a daunting premium increase of 12%. Through MTZ, they slashed costs by 29%, saving $192,000 on their renewal premium. This allowed the organization to reinvest in crucial projects, improve employee benefits, and bolster its ability to attract and retain talent. For businesses looking to gain control over healthcare expenses without compromising on quality, CalmHR provides innovative strategies that deliver measurable results.

Conclusion

Navigating the rising costs of health care benefits does not have to be overwhelming for your business. By implementing proactive strategies like wellness programs to promote healthier lifestyles, adopting High-Deductible Health Plans (HDHPs) paired with HSAs for smarter spending, and leveraging the convenience and affordability of Telehealth and virtual care, businesses can take significant strides in reducing expenses while boosting employee satisfaction.

For even more transformative results, consider partnering with experts like CalmHR, whose innovative Manage to Zero™ program has helped organizations achieve remarkable cost savings without sacrificing quality benefits.

At Expense to Profit, we specialize in helping businesses like yours optimize expenses and improve profitability. Let us support your journey to creating a healthier, more cost-efficient benefits package that aligns with your goals. Contact us today to explore tailored solutions that work for your organization.