Employee engagement: The hidden key to reducing health care costs

As a small or mid-sized business owner, managing health care costs is a top priority. With the rising costs of health care, it’s essential to find ways to reduce expenses without compromising the quality of care for your employees. One often-overlooked strategy is leveraging the power of engaged employees to help manage health care costs.

The challenge of rising health care costs

Health care costs continue to rise, with the average annual premium for a family increasing by 24% over the last five years, according to a report by the Kaiser Family Foundation.¹ For small and mid-size businesses, these costs can be particularly burdensome, with 71% of small business owners citing health care costs as a significant challenge, according to a survey by the National Federation of Independent Business.²

The power of employee engagement

Engaged employees can play a significant role in managing health care costs by taking proactive steps to maintain their physical and mental well-being, thereby reducing the likelihood of chronic diseases and costly medical interventions.  By embracing a culture of wellness, employees can reduce the financial burden on their employers and the overall health care system, while also improving their own health outcomes and quality of life.

Taking ownership of their health

Engaged employees are more likely to prioritize their health and wellness, reducing the need for costly medical interventions.

Making informed health care decisions

Engaged employees are more likely to research and understand their health care options, reducing unnecessary tests and procedures.

Utilizing preventive care

Engaged employees are more likely to take advantage of preventive care services, such as annual check-ups and screenings, reducing the risk of costly chronic diseases.

Participating in wellness programs

Engaged employees are more likely to participate in wellness programs, such as fitness classes and healthy eating initiatives, reducing the risk of costly health problems.

Strategies for engaging employees in health care cost management

Activating effective employee engagement is critical for successful health care cost management. By implementing a comprehensive approach, employers can foster a culture of engagement, empowerment, and accountability, ultimately driving positive health outcomes and reducing health care costs.

To achieve this, employers can implement the following strategies:

• Communicate effectively: Clearly communicate the importance of managing health care costs and the role employees can play in reducing expenses.
• Provide education and resources: Offer educational resources and tools to help employees make informed health care decisions and take ownership of their health.
• Incentivize healthy behaviors: Offer incentives for employees to participate in wellness programs and prioritize their health and wellness.
• Encourage employee feedback: Encourage employees to provide feedback on health care costs and suggest ways to reduce expenses.

How Florida Blue can help

Florida Blue offers a range of services to help businesses engage their employees and reduce health care costs by providing: 

• Comprehensive wellness programs
• Health education platforms
• Disease management programs 
• Employee engagement platforms
• Data analytics tools 

Florida Blue can help businesses empower their employees to take ownership of their health and wellness, reducing the risk of costly health problems and managing health care costs. With these services, businesses can gain valuable insights into employee health and wellness, identify areas for improvement, and optimize their wellness programs to achieve better outcomes.

Empowering employees, reducing costs

Managing health care costs is a critical challenge for small and mid-size businesses. By leveraging the power of engaged employees, businesses can reduce health care costs without compromising the quality of care. By communicating effectively, providing education and resources, incentivizing healthy behaviors, and encouraging employee feedback, businesses can empower employees to take ownership of their health and wellness, reducing the risk of costly health problems and managing health care costs.

References:

¹Kaiser Family Foundation. (2024). 2024 Employer Health Benefits Survey. Retrieved from https://files.kff.org/attachment/Employer-Health-Benefits-Survey-2024-Annual-Survey-Summary-of-Findings.pdf
²National Federation of Independent Business. (2020). Health Insurance and Small Business.