Findley Davies, an HR consulting firm, conducted a survey in the fall of 2009 that found that employer-sponsored health care costs are expected to continue to grow at a high rate. In the published report, Findley Davies also offers several strategies for employers to control their health care costs for 2010. In order to manage your own costs and at least partially offset rate increases, consider the following 9.5 suggestions.

1.            Conduct a dependent eligibility audit. This can weed out ineligible dependents and could produce significant savings. If you have never done such an audit, begin with an amnesty period to allow employees to voluntarily remove ineligible dependents without penalty.

2.            If you have retirees on your health plan, make sure that your claims administrator is correctly integrating with Medicare. Occasionally, the administrator's system incorrectly codes the retiree so the company becomes the primary benefits provider, instead of secondary to Medicare.

3.            Audit your claims administrator to ensure that all claims eligible for stop-loss reimbursement have been accurately reported to your excess risk carrier.

4.            If self-insured, negotiate changes in your ASO fees to reflect probable changes in your company's wages/salaries next year.

5.            If you have a Consumer-Driven Health Plan (CDHP) option, consider making it your "benchmark plan," so that employees selecting the traditional plan will pay the required CDHP contribution along with the difference in cost between the two plans.

6.            Consider establishing an on-site health clinic to support your wellness initiatives and offer convenient access to primary care and preventive services.

7.            Look into joining an employer coalition to take advantage of a group purchasing arrangement. If it is a good fit for your company, you could realize significant medical and/or Rx savings.

8.            If you have a three-tier Rx plan, redesign the tiers to encourage lower-cost generics. Consider not covering expensive "lifestyle" type drugs, or creating a fourth tier at a higher rate to accommodate them.

9.            Analyze carrier data to identify common chronic diseases or conditions within your organization, and implement a disease management program to educate employees, prevent their conditions from worsening, and ensure that they are properly managing their conditions.

9. 5       Routinely educate employees on smart consumerism strategies, the importance of preventive care, and the availability of low-cost medical or prescription options in your area.

Source: Findley Davies, "Health Care Trend Survey"