With labor markets tightening and competition for services increasing, employees providing Dallas small business group health insurance hope to hold plan costs steady in 2019.
With a tighter job market, employers providing Dallas small group business health insurance are hoping to keep costs steady for 2019.
Many cities like Dallas have organizations that are creatively leveraging the sizes of their workforce to obtain more favorable deals from insurers and pharmacy benefit plans. Some companies believe they could realize cost reductions by nearly 10 percent. With health care costs saved, cash could then be used to offer attractive recruitment and retention benefits and higher wages to the workforce in a more competitive market.
According to a report by PriceWaterhouse Coopers (PwC) Health Research Institute, overall health costs are expected to increase by approximately 6 percent. Employees participating in Dallas small group health insurance plans have experienced rate increases ranging from 5-7 percent over the last five years, in line with numerous cities in large states. To combat these cost hikes, employers had historically provided high-deductible plans. In 2019, not so much. Instead they are opting to not shift the expenses to employees and are resigned to absorbing some of the costs themselves.
Employers are also modifying their plan options by creating ones with tighter provider networks and prescription drug options with more narrow brand name formularies.
So because of the current labor market, employees are truly the customers. Many organizations are working to improve the customer experience by providing user-friendly digital tools that can assist employees 24 hour/day. Most younger workers are increasingly more comfortable with online help and not necessarily needing to speak with someone to manage their health care benefits.
Rick Thornton, a Dallas small business group health insurance agent thinks this is a positive trend. “When labor supply is low as it currently is, employers must be willing to compete for skilled employees. Health care is such an important benefit for anyone. So it makes sense that reduced costs and better options are going to be where the battle lines are to be fought in the next couple of years,” he stated.
And in a large metropolitan city such as Dallas, the strength of the economy will certainly impact how businesses manage health insurance and alleviate cost increases to it’s labor force.
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