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Managing Health Care Costs: Federal

Author: Leah Shepherd


  • Some strategies employers use to manage health care costs include proper selection of brokers and vendors. See Selecting Benefit Brokers; Selecting Service Providers.
  • Soaring health care costs have been a top concern for US employers in recent years. Employers are using multiple strategies in an effort to reduce health care costs, or at least reduce the annual rate of increase. Health care reform, or the Patient Protection and Affordable Care Act (PPACA), places some limits on these strategies. See Cost Containment Strategies.
  • The best approach is for employers to use several carefully selected strategies at the same time, rather than relying solely on one strategy to reduce health care costs. See Cost Containment Strategies.
  • Employers are increasingly shifting the cost of benefits to employees. See Cost Sharing.
  • Consumer Driven Health Plans (CDHPs) are being used to encourage employees to make better health care decisions. See Cost Sharing.
  • Funding health care plans can depend on the employer's size, employee demographics and location. See Financing the Health Care Plans.
  • Other alternatives employers use to manage health care costs include disease management programs, wellness initiatives and dependent eligibility verification audits. See Disease Management Programs; Wellness and Prevention Programs; Dependent Eligibility Verification Audits.
  • Employers that are successful in reducing health care costs increase employee accountability, promote high quality health care and invest in a comprehensive approach to engage employees in living more healthful lifestyles. See Wellness and Prevention Programs.