5 Proven Strategies to Reduce Employee Healthcare Costs Without Compromising Benefits

Affordable IPMI plans for expatriates and frequently traveling employees in Asia are possible — if you know where to look. Cost effective IPMI solutions for HR departments, including group IPMI for multinational companies, are at hand with the help of a good broker.

Providing comprehensive healthcare coverage for employees is a top priority for businesses. Yet rising healthcare costs and inflation continue to challenge even the most robust of benefits plans.

Companies across Asia are feeling the pressure, especially with the steady increase in healthcare expenses due to factors such as higher labor, equipment, and medicine costs. However, with the right approach, businesses can leverage global healthcare solutions such as IPMI to better manage costs without reducing essential benefits for their employees.

While general healthcare solutions tailored to local needs can provide comprehensive coverage at controlled costs, International Private Medical Insurance (IPMI) stands out as an exceptional option for enhancing benefits for top global talent, expatriates, and frequent travelers. This insurance provides seamless access to medical facilities across multiple countries, ensuring that individuals can receive the care they need, no matter where they are in the world.

HR leaders have the opportunity to evaluate the advantages of IPMI alongside local health insurance plans, ensuring they choose the best option to meet the organization’s needs. With this in mind, below are five strategies to help HR leaders in Asia optimize employee healthcare plans and reduce costs without compromising quality.

1. Evaluate and Refresh Your Current Plan

Many HR leaders rely on their existing healthcare plans, assuming they are the most cost-effective option. This is as much the case for basic expatriate medical plans as it is for complex corporate IPMI plans for multinational companies in Asia. However, healthcare needs evolve, and so do the options available in the market. Regularly reviewing your employee healthcare policies ensures they remain competitive and aligned with your organization’s specific requirements.

For businesses with expatriates or frequent travelers, offering global healthcare options like IPMI as a supplementary benefit can meet their unique needs. Conducting a thorough comparison of healthcare plans across various insurers can help identify better pricing and enhanced coverage options. In markets characterized by high workforce mobility, such as Singapore and Hong Kong, offering IPMI solutions serves as a compelling differentiator for attracting and retaining top global talent.

2. Consider Switching Providers

The healthcare insurance market in Asia is highly competitive, and providers are constantly vying for new customers. Businesses can take advantage of this competition by exploring alternative insurers. Even if 80% of healthcare policy coverage is standardized, insurers typically offer discounts or added-value incentives to attract new clients.

For companies with employees requiring international coverage, this could mean negotiating special rates for IPMI policies, while ensuring that local employees remain covered through more cost-effective general healthcare plans.

3. Analyze Claims Data for Cost Drivers

Frequent claims or unusually high claim amounts can significantly inflate premium costs. By analyzing claims data, HR leaders can identify patterns, such as benefits overutilization, or trends in specific types of claims.

For instance, if claims data reveals avoidable overuse of healthcare services, businesses can implement measures to better educate employees on the appropriate use of their coverage. For international employees, reviewing IPMI claims can also help determine whether the current plan is being fully utilized or if adjustments are needed.

4. Invest in a Wellness Program

A proactive approach to employee health and wellbeing can reduce healthcare costs in the long term. By encouraging healthier lifestyles, businesses can help decrease claims while improving employee productivity and job satisfaction.

Wellness initiatives can include gym memberships, health screenings, counseling services, stress management workshops, and fitness challenges. For companies with IPMI coverage, offering these programs can complement the benefits of international insurance, ensuring a healthier workforce both at home and abroad. Flexible work arrangements and employee engagement activities can also contribute to improved mental and social wellbeing, creating a more balanced and resilient workforce.

5. Partner with a Trusted, Client-Focused Broker

Managing employee healthcare plans can be overwhelming, especially when navigating complex insurance options across different markets. Partnering with a trusted insurance broker can provide the expertise and guidance HR leaders need to optimize their healthcare strategies.

A broker who understands your organization’s needs can help you find the right mix of general healthcare plans for local employees and global healthcare solutions like IPMI for expatriates and frequent travelers. They provide guidance on local regulations and compliance, which are often subject to change. In addition to securing cost-effective plans, a proficient broker will assist with claims management, plan renewals, and the implementation of wellness programs, ensuring a seamless experience for your HR team and your employees.

At Lockton, we understand the challenges businesses face in managing healthcare costs while providing high-quality benefits. By integrating customized healthcare plans with optional IPMI enhancements for mobile and international employees, we help companies in developing cost-effective solutions that cater to the diverse needs of their workforce.

Better manage healthcare costs without reducing benefits, and discover the advantages of IPMI solutions. Speak with an insurance expert today. Lockton APAC - Contact Us | Lockton (opens a new window)