Cost Reduction Expert Targets Options For Employee Health Care

SOUTHBURY — A local consultant is working with area businesses to help save money, both for their companies and for employees. And one of the primary areas of savings she is targeting relates to employee health benefits.

“Health care services should be a key target for money saving opportunities,” said Lisa Powell, an Expense Reduction Coaching (ERC) franchisee in Southbury.

Ms Powell said in a recent release that longstanding relationships and inadequate oversight are the primary reasons for the gradual increase in health care costs for most businesses.

“Most business owners are not asking the right questions when they change their programs annually,” she said.

According to Ms Powell, changing out benefit providers, as an expense category, rarely happens within a company. Although benefit programs change annually, the cost of administering the programs, benefit payouts, and how the organization and the employees are compensated do not.

By examining these expenses, companies can typically save as much as 15–20 percent each year.

“It’s the lack of information that is getting in the way of the savings,” said Ms Powell. “Each vendor has a limited number of health care options to offer their clients based on licensing and relationships. Business owners would be wise to look for support in this area from a cost-cutting professional who can give them a broader scope of what the health care vendor market can offer.”

There are a number of indirect company expenses that can be reduced, renegotiated, or even eliminated when a cost-cutting expert spends time reviewing the invoices, contracts, and individual line item charges, according to Ms Powell.

She says the health care services area is where significant savings can be realized.

Ms Powell is trained to help business owners reduce long-term costs by analyzing clients’ expenses, negotiating or renegotiating with suppliers and making recommendations, which result in long-term savings. She also focuses on helping companies and organizations realize measurable cost savings in other indirect expense categories like office supplies, telecommunications, staffing, maintenance contracts ,and professional services.

ERC’s cost reduction program has been in use since 1993. To learn more, contact Ms Powell at 203-405-2114 or lpowell@franchisesource.com.