Make COBRA More Affordable for Your Company With These 3 Tips
January 9, 2019
COBRA coverage is a sound health coverage option for any of your employees (and their dependents) who might experience a qualifying event. But it’s an expensive one, for both you and your employees. Members pay 100% of the cost of COBRA, and you may see higher premiums when you have a higher number of members (since fewer elections can lead to fewer claims, which can reduce your overall cost).
Keep reading for a few simple steps that may reduce your COBRA costs. And complete the form below to download your free eBook to see how technology will help you simplify your COBRA administration.
Engage your employees
Employee termination (for any reason other than gross misconduct) is one of the more common events that leads to an employee becoming eligible for COBRA. One way to reduce employee terminations is to engage employees early on so they’re more inclined to stay at your company.
Employee engagement has a profound impact on employee retention. Effectively engage your employees in your company and its mission, and you’ll create a purpose-driven workforce that cares about your business. There are many ways you can do this, including by reducing employee stress, finding the right leadership and getting “the pulse” on your employees. (Get specific ideas on these tactics in this blog post.)
An effective staffing strategy is at the heart of any successful business. Monitoring your staffing levels is ongoing because factors that lead to greater or fewer staffing needs at your business are constantly changing. Having too many – or even too few – employees can impact your bottom line and employee satisfaction. And, when you have too much staff, that leads to a greater likelihood of layoffs (which would create more qualified beneficiaries). So what can you do to avoid layoffs while also reducing qualifying events?
- Put a freeze on hiring for open positions.
- Reduce your temporary employee staffing.
- Revisit staffing levels regularly.
Offer COBRA alternatives
Providing alternative coverage options is a smart way for both you and your qualified beneficiaries to save money. They can shop customizable, affordable coverage options through a marketplace, letting them choose coverage that best fits their needs.
We offer Discovery Marketplace at no additional cost to our employers. On average, a single person saves $150 per month and a family saves $675 per month with coverage through Discovery Marketplace rather than COBRA. That’s why, when offered coverage options from Discovery Marketplace and COBRA, qualified beneficiaries are nearly four times more likely to choose coverage from Discovery Marketplace. And, in addition to potentially saving you money, it will also minimize your risk, since the risk associated with alternative coverage claims is taken on by the provider members choose.
Would you like to learn how technology will simplify your COBRA administration? Complete the form above to download your free eBook.