By Thomas Torre, Copatient
The healthcare industry has gone through many changes that have resulted in a major shift of financial responsibility onto the consumer. Plus, Washington is planning drastic revisions to the way we receive and pay for healthcare, making the future uncertain. Retail is one space particularly susceptible to skyrocketing medical costs, in large part due to its dependence on an hourly work force. In most cases, hourly-wage employees are not eligible for benefits and may be disproportionately burdened by the rising cost of healthcare.
Taking a closer look at challenges facing the retail workforce, there are minimal affordable healthcare options for part-time workers. Many Americans struggle with unexpected costs, leaving these employees having to choose to go without benefits, or worse, putting off care to avoid incurring expenses. This is problematic because the consequences of health and financial situations extend beyond the worker to the employer (via things like productivity, retention, turnover and increased costs).
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With the Affordable Care Act (ACA) facing repeal, the new proposed plan calls for ending the mandate that requires people to pay a fine for not having insurance. Instead, the plan would impose a penalty for signing up for health insurance after being uninsured for 63 days or more. That penalty would be 30% of the monthly premium of their new insurance plan, lasting for 12 months.
While the GOP works through these mandates, it is important for employers to understand how they can help educate their employees on choosing the best healthcare options for their needs.
Preparing for Change: Options To Reduce Costs
Today, there are a growing number of resources to help retail businesses and their employees work together to ensure they are prepared for rising medical costs at the individual and organizational level.
One option is to provide an employer group health plan, like Starbucks offers. A group health plan is maintained by an employer or employee organization and is often a lower-cost solution, as it groups participants together and the risk is spread across the company. We’re seeing an increase in employers deciding to self-insure to create affordable benefit options. However, this solution depends on a large workforce to balance the cost advantages and risks.
If offering comprehensive benefits is not an option, companies can still provide value to their employees by engaging them via education and other resources to improve an individual’s ability to manage their own healthcare finances. Copatient, for example, works with employers to assess medical bills for savings opportunities, and can pair employees with an expert advocate to reduce the cost of medical bills. This service offers all parties assurance that the price paid for care is fair and accurate, acting as an added protection against paying an unadjusted, out-of-network or uninsured rate. Providing education and tools to help employees navigate healthcare more effectively serves your interests and those of your employees, without the costs associated with full benefits.
This can have real impact on your bottom line. In fact, Bloomberg reported it costs $3,400 on average to find, hire and train a replacement, and found that turnover in the retail sector stands at 5% a month. Employee retention is crucial to a business’ overall success, and rising medical costs constitute an increasing threat to both the employer and employee. However, facilitating a better sense of physical and financial well-being, more preparedness, and a better understanding of the healthcare system, will promote employee satisfaction and will enable the financial stability necessary to remain an engaged and productive member of your team.
Thomas Torre serves as the Chief Executive Officer for Copatient, bringing over three decades of executive leadership in the healthcare and financial management industries. He leverages his rich experience in private equity backed and Fortune 500 organizations to help guide the strategic vision of the company. Copatient helps consumers take control of their healthcare expenses, with the most comprehensive healthcare expense management services available to help ease the emotional and financial burden of healthcare costs.
