4 Ways to Offer High-Quality Employer Healthcare Coverage

Providing healthcare coverage can be a source of anxiety for employers. Rising deductibles and premiums make offering high-quality insurance seem out of reach for many companies, especially smaller businesses.

Rising costs impact employees, too. The average annual premium for an employer-sponsored family health plan was $21,342, with workers contributing $5,588 of that amount. The average annual deductible for single coverage is $1,644.

Many employees already feel they pay more than they can afford for health insurance. Some have even quit their jobs because employer-provided health insurance deducts too much from their paychecks while they still cover out-of-pocket costs. For employers, the solution boils down to an impossible choice: They can either raise employees’ share of premiums or increase the size of the deductible. Neither option is a win.

Quality Employer Healthcare Coverage Workarounds?

Some companies position insurance benefits as a gift to avoid offering higher-quality healthcare coverage, but employees still suffer. Employers either deduct more from employees’ wages to pay for benefits or eliminate jobs to lower the impact of providing those benefits.

Other companies that aren’t required to offer health insurance might provide alternative health benefits to balance insufficient coverage. For example, job flexibility might allow employees to go to a medical appointment without losing a day of pay.

But these workarounds are only temporary fixes to real and lasting problems. Viable solutions will require companies to offer quality employer healthcare coverage. The good news? This change will also benefit employers.

How Comprehensive Healthcare Benefits Are Good News for Everyone
Here are some key ways employers benefit from providing high-quality healthcare coverage to employees:

• Improved hiring and recruiting: A robust benefits package can appeal to new hires and current employees while setting a business apart from its competitors.

• Increased employee loyalty, retention, and satisfaction: Offering great health insurance can help businesses — particularly small businesses — retain employees. It can increase job satisfaction and the likelihood of employees staying with a company well into the future.

• Healthier and more productive employees: When employees have quality healthcare coverage and health resources, they take care of themselves more proactively and intentionally. They can take fewer sick days, retain their focus, and be more productive at work.

Best Practices for Providing the Best Possible Employer Healthcare Coverage

Here are four suggestions for employers that want to provide higher-quality healthcare benefits:

1. Offer a low-cost option supplemented with a virtual care plan.
Telehealth has taken the world by storm since the pandemic began. Virtual care solutions allow employees to take care of minor and routine health issues in a cost-effective, convenient way. If you offer a high-deductible health insurance plan, consider offering a complementary virtual care plan. It reduces out-of-pocket costs from deductibles and copays, and some plans (like Health Karma’s Virtual Primary Care solution) include prescription discounts for members to mitigate healthcare costs further.

2. Combine a high-deductible plan with a health savings account (HSA).
Another great complement to a high-deductible plan is an HSA. HSAs are tax-advantaged medical savings accounts, so the funds aren’t subject to federal income tax. Unused funds roll over and accumulate year after year. Companies can make consistent monthly contributions to HSAs and should encourage their employees to do likewise.

3. Adjust insurance premiums and deductibles based on an employee’s income.
This is an excellent strategy for medium and large employers. JPMorgan Chase, for example, pays 80% of premiums for workers who make less than $60,000 a year and lowers annual deductibles by $750 to $2,000 or less, depending on the plan.

4. If health insurance coverage isn’t an option, offer independent virtual care or telehealth coverage.
In the absence of standard employer healthcare coverage, virtual care and telehealth coverage can help employees access the care they need without being terrified of the cost. Our comprehensive Virtual Primary Care solution lets patients see the same primary care physician each time they seek care, enables access to annual virtual wellness exams (including routine labs), and offers virtual urgent care 24/7.

At Health Karma, we believe good healthcare starts with understanding it. Learn more about how to make the most of Virtual Primary Care.