Recession Preparation. Employers need to ensure that they are sufficiently prepared and can take steps to limit recession-related ramifications and maintain financial stability for their employees. Cost-mitigation strategies include revisiting compensation strategies, modifying health care plan designs, automating internal processes, considering alternative staffing options, staying transparent, prioritizing employee engagement, improving employee’s health care literacy, and incorporating health care analytics to reduce health care costs.

Alternative Funding Options. Seek solutions that will finance your health care spending such as self-funding, level-funding, captive arrangements, etc. Self-funded health insurance can save employers 10% to 25% on non-claims expenses. Both self-funded plans and benefit captives allow employers more control over their health care services and data, more flexibility in health care choices for employees, and minimizes the impact of catastrophic claims.

• Individual Coverage Health Reimbursement Arrangement. ICHRA allows tax-free reimbursement of individual health insurance for businesses of all sizes. An ICHRA is a group health plan that allows the employer to reimburse employees for health care plans purchased from the marketplace. Payroll deductions are handled in the same way as employer sponsored group plans. ICHRAs provide more freedom and flexibility to employees while stabilizing costs for employers, allowing them to fund coverage for employees that otherwise wouldn’t be feasible.

Cost-Shifting Models. Negotiate with health care providers to help lower costs, exploring direct contracts or reference-based pricing.

• Reference-Based Pricing. RBP is a cost-containment strategy that eliminates the disparity between in-network and out-of-network pricing. Used by some self-insured employers, RBP establishes benchmark pricing for services, usually indexed to Medicare reimbursement rates. Covered employees may see the providers of their choice, with no network requirements, if the provider agrees to accept the RBP amounts as payment in full.

Hybrid or Remote-First Arrangements. Data estimates that companies can save thousands of dollars annually per remote employee. Sticking with remote work can decrease hiring freezes and layoffs while fostering an attitude of job security, which improves employee morale and mental well-being.

Employee Retention. It is far more expensive to hire a new employee than to keep one. Not only does it require time to hire and train a new employee, but by some measures, the cost of replacing an employee can be as much as twice their annual salary.

Financial Wellbeing. Financial security leads to a more productive and loyal workforce. Retirement plans, financial counseling, tuition reimbursement, and loan programs are critical to the long-term financial wellbeing of employees. Flexible Spending Accounts (FSAs) can also offer potential tax savings and other benefits.

Care Empowerment. The adoption of health care navigation services, tech-enabled personalization, financial and health care literacy, price transparency tools, and high-touch (human) guidance will empower employees to make smart decisions for themselves and their loved ones.

Population Health Strategies. Provide employees with medical decision support and guidance to cost-effective, high-quality care options. High-value care provides better health outcomes, reduces ER visits and unnecessary care, and promotes longitudinal care. Encourage good primary care relationships and compliance with medications. Primary care providers can manage employee health and prescribe medications so that employees have the potential to avoid any downstream high-cost situations, such as worsening or progressing diseases that require advanced, specialized care. Consider providing generic medicines for free or incentives for employees who seek high-value care.

Health Equity. Evaluate programs and benefits to address the circumstances that employees and their families are born into and live, which have an impact on their ability to live healthy and fulfilling lives. Implementing health care delivery alternatives such as virtual solutions for primary care, mental health, and urgent care can improve health equity for your workforce. Telemedicine improves access for people in rural and minority areas, and for those who face cultural or discriminatory barriers.