On average, companies spend 7.6 percent of their annual operating budget on employee healthcare, and that cost is growing year over year. Many companies are transferring some of this increased cost to employees — requiring higher contributions to monthly premiums, choosing high-deductible plans, or cutting benefits — which can lead to the additional cost of employee dissatisfaction and increased turnover. It's bad for the employer, and it's bad for the employee: no one wins.
There is a way to combat increasing healthcare costs without placing the burden on employees. In fact, there's a way to reduce costs while giving employees a benefit that they love.
Maternity and family is both a top requested area for support among millennials and a top cost driver for employers and insurers. An effective, engaging maternity & family benefits program saves money and leads to healthier, happier employees.
Here's how the costs break down: the average employer spends 10% of their corporate healthcare costs on maternity, and that percentage can rise significantly with even a small number of high-risk pregnancies. The Ovia Health clinical team conducts annual research on the impact of negative maternity health outcomes, and we know that the cost for payors is, in part, driven by:
One of the best ways to improve these outcomes, and ultimately reduce cost, is to provide health education and resources to women and families to support their unique journeys. Investing in a maternity and family benefits program that provides personalized education, resources, and tools will help prevent high-risk, high-cost complications, reducing healthcare spend and improving the health and wellness of women and families.
This is the area where you can make the greatest impact on your healthcare spend — in 2020 and beyond — and make an incredible impact on your employees and their families.
What are you waiting for?
Ovia Health helps women and parents grow their families and their careers, while reducing healthcare costs, improving health outcomes, and helping employers retain and attract talent.
To learn more about Ovia Health for Health Plans, click here.
To learn more about Ovia Health for Employers, click here.