Cost-Saving Strategies for Employers Facing Fiscal Emergencies
In response to funding cuts and financial crises, employers may need to adopt drastic cost containment measures. Strategies include shifting more benefit costs to employees, restructuring health plans, reducing paid leave liabilities, implementing temporary pay cuts or four-day workweeks, and offering unpaid sabbaticals. Organizations might also switch insurance models, suspend retirement contributions, or reduce hours instead of laying off staff. While these approaches can hurt morale and retention, they may be necessary for financial survival during emergencies.
If you need advice, call Precision Benefits today.
UnitedHealthcare Expands Flexibility with New Level Funded Updates
Starting July 1, UnitedHealthcare is making it easier for employers to offer coverage with new Level Funded plan enhancements and lower participation requirements in several states. New Jersey groups will also move to Metro non-gated plans for simpler, gate-free access to care. These changes are designed to offer more flexibility, competitiveness, and ease for employers and members alike.
Why Unit Cost Matters in Healthcare Negotiations
Unit cost—the price for a specific medical service—directly affects healthcare expenses. Providers are demanding higher rates due to rising operational costs, labor shortages, inflation, lower government reimbursements, and financial pressures from the No Surprises Act. For self-funded employers, even small increases can significantly impact bottom lines. Cigna emphasizes strong collaboration with providers to manage costs, minimize network disruptions, and protect client savings, helping ensure healthcare cost stability year after year.
New Bipartisan Bill Aims to Boost PBM Transparency
House lawmakers introduced the Prescription Drug Transparency and Affordability Act to require pharmacy benefit managers (PBMs) serving employer plans to disclose detailed drug pricing information. The bill, backed by both Republicans and Democrats, would fine PBMs up to $100,000 per violation for noncompliance or false reporting. It seeks to clarify costs for employers and patients without exposing personal health data. The legislation responds to growing concerns over PBMs profiting at the expense of payers and patients.
Compliance Corner! Are You Meeting ERISA’s SPD Requirements?
Failing to distribute a proper Summary Plan Description (SPD) can cost employers up to $110 per day—per participant. Insurance documents alone aren’t enough. Employers must proactively share an SPD that meets ERISA standards, update it after major changes, and follow strict delivery rules. Even a Wrap SPD needs careful handling to ensure full compliance. Avoid audits, penalties, and employee confusion by understanding your responsibilities now.