Employees care about benefits. After base pay and organizational reputation, employees are attracted by benefits.
The cost of benefits for employers is significant and ever increasing. The cost of providing benefits to employees is approximately 10% of gross annual payroll—or $8330 per full-time equivalent. Cost containment is required.
With the ever-increasing cost of benefits, companies need to look into alternative solutions and make difficult choices about their benefits spending.
Many employers are concerned about the rising cost of prescription drugs. Organizations are starting to see the impact that costly biological drugs will have on prescription drug spending as the population ages.
Insurance companies price risk. Small business pays for the insurance risks. Few small business owners realize the hidden risk of promising to pay for high cost drugs for their employees now and in the future. When an employee makes a claim for a high-cost drug, it's extremely difficult for a small business to avoid paying excessively high-insured health benefit costs.