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Steps to lower your costs

So what can a small business do to manage its health care expense? Probably a lot. Education and training are the key components of any company health care program.

There are individuals who go to the doctor for every little ache and pain, pay the $10 or $20 co-pay and assume that's all it costs. Or they go to the pharmacy and dish out $20 for a $150 bottle of pills, with the impression it is basically free. No wonder they run to the doctor and emergency room — it doesn't cost anything!

But we all know better. The total cost of health care is covered through premiums, which are becoming a major burden to both employers and employees. So what can you do to improve your situation?

No matter what, most companies need to take action to monitor and control health care expenses. Some steps to consider include:

1. Audit your policy and terms to make sure you understand how the policy works.
2. Make sure all employees understand the policy terms, and have them sign off annually on the coverage of dependents. You would be surprised how many dependents maintain coverage after they no longer qualify.
3. Educate employees on how to effectively and efficiently use the policy. Make employees painfully aware that health care services are not free, and in order to keep their premium contributions down, they must keep costs in line. There are many ways to get health care advice without going to the doctor. For example, many companies provide a phone list to access advice on common ailments.
4. Provide health care seminars and services to keep employees healthy. Stop smoking and weight loss contests could help cut costs.
5. Give your employees some "skin in the game". High-deductible health plans, such as Health Reimbursement Arrangements (HRA) and Health Savings Accounts (HSA) do this, while making employees aware of costs and alternative sources for services and information.

Benefits of high-deductible plans