By Jennifer Schaefer, MBA, ChFC, SHRM-SCP
Founder & CEO, JS Benefits Group
Healthcare costs have quietly become one of the largest—and least scrutinized—operating expenses for many businesses. While organizations routinely benchmark payroll, technology, insurance, and operational expenses, employee healthcare spending is often reviewed only during renewal season.
That reactive approach can leave employers paying significantly more than necessary.
Today’s leading employers are taking a different approach: healthcare cost benchmarking. By comparing their health plan’s performance against industry standards and identifying opportunities to improve plan design, organizations can reduce costs while maintaining or even enhancing employee benefits.
If you’re interested in understanding how your current plan compares, try our Healthcare Cost Benchmark Calculator:
https://jsbenefitsgroup.com/employee-benefits-benchmark-calculator/
This article was originally published on TechBullion:
What Is Healthcare Cost Benchmarking?
Healthcare cost benchmarking is the process of evaluating your organization’s employee health plan against similar employers.
Working with an experienced Employee Benefits Consultant can help employers uncover hidden opportunities to reduce healthcare spending while improving employee satisfaction.
Learn more about our Employee Benefits Consulting services:
https://jsbenefitsgroup.com/employee-benefits-solutions/
Benchmarking helps answer critical questions such as:
- Are we paying more than companies our size?
- Are our employee contributions competitive?
- Is our plan design still appropriate?
- Are pharmacy costs increasing faster than expected?
- Would a level-funded health plan reduce expenses?
- Are we offering benefits employees actually value?
Without benchmarking, employers often renew the same plan year after year without realizing there are more cost-effective alternatives.
Why Benchmarking Matters More Than Ever
Healthcare costs continue to rise because of:
- Prescription drug inflation
- Specialty medications
- Increased utilization
- Hospital consolidation
- Chronic disease management
- Delayed preventive care
Rather than accepting annual premium increases as unavoidable, employers who benchmark their plans can identify opportunities to redesign benefits, negotiate more effectively, and improve long-term financial outcomes.
Many employers also discover opportunities to improve compliance with federal regulations through proactive planning.
Learn more about ACA Reporting and Compliance:
https://jsbenefitsgroup.com/aca-reporting/
Benefits of Healthcare Cost Benchmarking
Organizations that benchmark their health plans are often able to:
- Identify unnecessary healthcare spending
- Improve plan design
- Evaluate funding alternatives
- Strengthen employee recruitment and retention
- Increase employee satisfaction
- Better predict future healthcare costs
- Improve budgeting accuracy
Benchmarking provides employers with meaningful data rather than relying solely on annual renewal increases.
Is a Level-Funded Health Plan Right for Your Business?
One of the most common findings during a benchmarking review is that a Level-Funded Health Plan may provide better long-term value than a traditional fully insured plan.
Level-funded plans can offer:
- More predictable monthly costs
- Potential claims refunds
- Greater transparency
- Detailed reporting
- Long-term cost management
Learn more about Level-Funded Health Plans:
https://jsbenefitsgroup.com/level-funded-health-plans/
Employee Benefits Are a Strategic Investment
Employee benefits influence far more than healthcare coverage.
They affect:
- Employee recruitment
- Retention
- Financial wellness
- Productivity
- Company culture
- Organizational competitiveness
The most successful employers treat benefits as part of an overall business strategy instead of simply an annual insurance purchase.
Organizations also benefit from investing in employee education, communication, and wellness initiatives.
Learn more about our Corporate Wellness Solutions:
https://jsbenefitsgroup.com/corporate-wellness/
How JS Benefits Group Helps Employers
JS Benefits Group works with employers throughout Pennsylvania, New Jersey, Delaware, Maryland, and nationwide to reduce healthcare costs while improving employee benefits.
Our services include:
- Employee Benefits Consulting
- Healthcare Cost Benchmarking
- Level-Funded Health Plans
- Benefits Administration Technology
- HR Technology Consulting
- ACA & ERISA Compliance
- Employee Education
- Corporate Wellness
- Open Enrollment Strategy
Whether you’re evaluating your current health plan or preparing for your next renewal, our team helps employers make informed, data-driven decisions.
Learn more about our complete Employee Benefits Solutions:
https://jsbenefitsgroup.com/employee-benefits-solutions/
Don’t Wait Until Renewal
The best time to evaluate your healthcare strategy isn’t after receiving a renewal increase—it’s several months before your renewal date.
Healthcare benchmarking gives employers time to:
- Compare plan options
- Improve employee communications
- Evaluate funding alternatives
- Strengthen compliance
- Reduce unnecessary healthcare spending
Planning ahead creates more options and often leads to better outcomes.
Ready to Benchmark Your Healthcare Costs?
If your organization wants to determine whether you’re overpaying for employee health benefits, now is the ideal time to begin.
Start by using our free Healthcare Cost Benchmark Calculator:
https://jsbenefitsgroup.com/employee-benefits-benchmark-calculator/
Or schedule a personalized consultation with one of our employee benefits consultants:
https://jsbenefitsgroup.com/request-consultation-form-group-health-benefits/
Together, we’ll help you build a smarter employee benefits strategy that controls costs, supports employees, and positions your organization for long-term success.
