Optimising Employee Benefits by Separating Outpatient Coverage for Cost-Efficiency

In today's business environment, many companies are providing insurance coverages to their employees. However with rising talent shortages, employee benefits packages need to be more comprehensive at companies to attract and retain top talent. To implement better employee benefits, it would likely come at a higher cost, with higher premiums.

One innovative approach to improve employee benefits offerings while achieving cost efficiency is to separate outpatient coverage from your current policy. This strategy can help businesses in Malaysia, Singapore, and across the region provide comprehensive and cost-effective healthcare benefits to their employees.

According to a 2023 PwC report, talent shortages, cost of living, and pressure to retain talent will continue to put upward pressure on pay levels with no sign of this diminishing. Organisations will not be able to meet pay expectations for everyone, so they must consider other elements of non-financial reward, such as employee benefits, to make up the difference.

This article will explore how businesses can leverage a flexible employee benefits platform like Mednefits to implement this strategy and optimise their employee benefits offerings. By separating outpatient coverage, companies can enhance the value of their benefits package while managing costs more effectively.

Understanding outpatient coverage

Outpatient Coverage refers to healthcare services that do not require hospital admission. This includes general practitioner (GP) visits, specialist consultations, diagnostic tests, and minor procedures. For employees, having access to outpatient services is vital for maintaining health and productivity, as it allows them to seek timely medical attention without the need for hospitalisation.

Outpatient coverage is a key component of a comprehensive employee benefits package. It ensures that employees have access to necessary medical care, leading to better overall health, reduced absenteeism, and increased job satisfaction. Providing robust outpatient coverage demonstrates a company’s commitment to employee well-being, which can enhance morale and loyalty.

Traditional outpatient coverage models often come with challenges such as high premiums and complex administration. Many businesses struggle to balance the need to offer comprehensive benefits with the financial burden of rising healthcare costs. Additionally, managing these benefits can be time-consuming and cumbersome for HR departments.

The need for cost-efficiency in healthcare benefits

Rising healthcare costs are putting significant pressure on businesses, making it challenging to provide comprehensive benefits without compromising financial stability. To stay competitive and maintain a healthy workforce, companies must find cost-effective solutions that balance quality care with financial sustainability.

Separating outpatient coverage from traditional health insurance plans is one effective approach to achieving cost-efficiency. This involves offering outpatient services on a pay-per-use basis rather than through fixed premiums, allowing businesses to better control healthcare costs while still providing essential medical services to their employees. This strategy can lead to significant cost savings and improved efficiency, allowing companies to maintain a competitive edge while ensuring the well-being of their workforce.

Separating Outpatient Coverage with Mednefits

Mednefits offers a unique pay-per-use model that helps businesses reduce costs associated with outpatient coverage. Instead of paying high premiums, companies only pay for the services used by their employees. This model can lead to substantial savings, especially for businesses with a relatively healthy workforce.

Mednefits also simplifies the administration of employee benefits through its user-friendly platform. HR departments can manage benefits entitlements efficiently, automating manual reimbursements and freeing up time to focus on other strategic initiatives. The platform’s integration capabilities also ensure a seamless experience for employees through cashless transactions at our panel clinics, and a unified view of benefit utilisation for administrators.

By separating outpatient coverage and utilising benefit management systems like Mednefits, businesses can empower their employees with better access to healthcare while achieving significant cost savings. Strategic benefits planning that includes flexible, cost-efficient solutions ensures that companies can offer competitive benefits without compromising financial health.