The Counterproductive Cost of Ignoring Your Group Health Insurance Spend

By Louis Bernardi | Certified Health Value Advisor | Founder | Benefit Optimization Officer

September 6, 2024

As HR and business leaders, it's easy to get caught up in the whirlwind of urgent priorities—talent acquisition, retention, compliance, and operational efficiency. But amidst the fires that need putting out, one critical expense is often left simmering on the back burner: your group health insurance spend. The irony? Ignoring this substantial cost in favor of focusing on "higher priority" issues may actually be costing you far more than you realize. In fact, addressing this spend head-on could be the key to solving many of the top struggles you face today.

The Hidden Impact of a High-Cost Health Plan Health insurance is typically the second or third largest expense for businesses after payroll. Despite this, leaders tend to treat it as a fixed cost—something that's out of their control. But the real problem with a high-cost health plan isn't just financial. It impacts the entire ecosystem of your organization, from employee satisfaction and retention to productivity and profitability.

If you're continually battling rising healthcare costs, it’s time to rethink how you're tackling this issue. What if, instead of treating healthcare as a necessary evil, you approached it as a strategic opportunity? One that not only improves your financial outlook but also addresses your core business challenges?

The Domino Effect of High-Performance Health Plans When businesses ignore their healthcare spend, they’re often missing out on solutions that can unlock multiple benefits. At BritePath , we focus on building high-performance health plans that reduce costs by 20-30%. But the benefits don’t stop there. By improving benefit design and increasing employee engagement with their health, businesses can see a cascade of positive changes:

1. Employee Retention and Attraction: High-quality health benefits are consistently ranked as a top priority for employees. By offering a better plan at lower costs, you differentiate yourself in the talent marketplace. Top talent is drawn to employers who prioritize their well-being and invest in their health.
2. Productivity: When employees have access to better healthcare, they are healthier. This means fewer sick days, lower absenteeism, and more engaged employees. High-performing health plans reduce stress, enabling your teams to focus on their work rather than dealing with complicated and inefficient health systems.
3. Cost Control: Let’s not forget the financial piece. By strategically managing your health plan, you can reinvest the savings into other areas of the business—whether it's workforce development, technology investments, or growth initiatives.

The Time to Act is Now For many leaders, health insurance spend feels like an unsolvable puzzle. But the truth is, avoiding this cost simply perpetuates many of the issues you're already trying to fix. By tackling it head-on, you're not just reducing expenses—you’re building a more resilient, competitive, and attractive business.

As you head into the final stretch of the year and prepare for 2025, consider the power of a well-designed health plan. It might just be the strategic shift you need to alleviate your most pressing challenges.

Let’s have a conversation about how we can build a high-performance plan that transforms your business. calendly.com/lcbernardi