When it comes to health care, soaring costs are typical news headlines. Employers are constantly challenged with keeping health care and employee benefits affordable. Tough economic times demand creativity and rethinking ways to save. Through strategic partnerships and new practices, the Division of Human Resources has employed successful strategies to maximize benefits while saving money.
By combining UNM’s roughly 7,700 benefits-eligible employees with UNM Hospital’s approximately 4,900 benefits-eligible employees, we have been able to save on certain benefit expenses.
Examples include:
· Selecting the same third-party administrator for administration of COBRA, saving approximately $20,000 per year.
· Awarding the same Flexible Spending Account vendor, providing savings while also streamlining time consuming manual and administrative practices.
· Issuing a joint Request for Proposal for dental insurance and planning one for vision coverage.
In addition to these partnerships with UNM Hospital, UNM implemented a new practice of self-funding the dental plan in 2007. By self-funding dental insurance, UNM has saved approximately $275,000 annually while protecting the benefits offered to UNM employees.
One factor that always reduces the cost of health care is when UNM employees and their dependents remain healthy. In the Benefits and Compensation Digest (2008), the Wellness Council of America and the Center for Health Care Economics said, “70 percent of all health care costs generated in the United States are attributed to preventable risks and unhealthy choices.”
As we strive to save money in this economy, we encourage employees and dependents to reexamine health-related practices and choices. For assistance in efforts to make healthier choices, call HR’s Employee Health Promotion Program at 272-4460.
Through strategic partnerships, improving practices and remaining healthy, we can all do our best to keep health care affordable at UNM.
Story by Helen Gonzales, vice president, Human Resources