Cost Containment Strategies That Actually Work: Real Savings for Self-Funded Employers

For employers with 50+ employees, healthcare costs can feel like an uncontrollable burden. But the reality is, self-funded plans give you the power to take control—if you use the right cost containment strategies. Here’s how employers are slashing their healthcare expenses while maintaining (or even improving) benefits.

1. Reference-Based Pricing: Paying Fair, Not Inflated Rates

Hospitals charge wildly different prices for the same procedure, often inflating costs without reason. Reference-based pricing (RBP) ties payments to a benchmark, such as Medicare rates, instead of arbitrary hospital charges.

2. Direct Contracting: Cutting Out the Middlemen

Negotiating directly with local hospitals, specialty clinics, and even surgery centers can yield massive savings. Instead of relying on a broad network with markups, direct contracting creates predictable, lower-cost pricing.

3. Carving Out PBMs: Controlling Prescription Drug Costs

Traditional Pharmacy Benefit Managers (PBMs) profit off hidden fees and spread pricing. Employers who carve out their PBM and switch to a transparent, pass-through model often see 20-50% savings on prescription drugs.

Take Control of Healthcare Costs

Self-funded employers don’t have to accept rising premiums as a given. By leveraging proven cost containment strategies, companies are reclaiming control, reducing waste, and delivering better benefits. The key? Working with experts who know how to structure these solutions for long-term success.

Want to see how much your company could save? Let’s talk.

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