Combating Rising Benefits Costs During Periods of High InflationThe U.S. inflation rate has increased by 9.1% over the last year, according to the Bureau of Labor Statistics. This has led to significant price increases across various consumer goods and employee benefits such as health insurance. In fact, health insurance costs have already risen for one-third of U.S. employees in the last year, according to a report from the Employee Benefit Research Institute. This increase in costs presents challenges for employers facing a difficult hiring market. Luckily, employers may be able to mitigate increasing benefits costs without shifting the burden to employees, thus remaining attractive to current and prospective employees. Consider the following strategies:
As employers adjust to increasing inflation rates and subsequent rising costs, there are several strategies they can use to help offset the severity of the situation. From providing wellness programs to facilitating the use of telemedicine, employers will need to think carefully about which strategy would work best for their unique circumstances. How to Select the Right Third-party AdministratorFinding the right third-party administrator (TPA) can be challenging, and organizations often underestimate the time and resources required to select the best candidate for their needs. However, exercising due diligence to find the ideal TPA can pay dividends by ensuring a smooth and cost-effective plan operation and minimizing legal risks. Consider the following strategies:
After making a selection, it’s essential to regularly review the TPA’s performance to ensure it continues to meet organizational needs. |
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