Strategies for Managing Health Care Costs
Author: Leah Shepherd
Updating Author: Kim Freeman
Increases in US health care costs are inevitable. According to a recent Kaiser Family Foundation report family premiums rose 47 percent from 2011 to 2021.
The Kaiser report also found that family coverage contributions for 2021 averaged approximately $22,000, with nearly $6,000 paid by workers and the businesses subsidizing the rest. These numbers increase each year and HR plays a key role in managing health care costs that is essential to minimizing the impact of these increases.
HR departments must understand their specific workforce needs and values when searching for cost-saving solutions. Leading practices require HR business partners to review benefits data and employee surveys to target specific programs, prescriptions, or services. HR plays a vital role in helping organizations understand the importance of affordable health benefits to employees and for compliance purposes for those subject to state or federal healthcare mandates.
This guide discusses strategies employers can use to manage health care costs.