Controlling Business Costs, Part 3: Healthcare
Healthier employees also can help control the employer portion of healthcare costs. Since hiring only 100% healthy employees isn't a feasible option, many companies are looking at the benefits of an onsite medical care facility to help improve the health of their employees.


Healthcare costs are an ongoing concern, with skyrocketing insurance costs and the new complex world of healthcare reform.
Healthier employees can help control the employer portion of healthcare costs. Since hiring only 100% healthy employees isn't a feasible option, many companies are looking at the benefits of an onsite medical care facility to help improve the health of their employees.
HNI, a non-traditional insurance and advisory firm, wrote a white paper entitled, Is Onsite Medical Care a Fit For Your Company?
The white paper states that onsite clinics not only have the potential to contain medical costs, but they can also boost productivity by helping employees manage chronic conditions such as high blood pressure and diabetes.
"Large, self-insured employers have the greatest potential to reap savings from this strategy," notes the white paper. "Fully insured employers will not be able to realize direct cost savings, but may gradually decrease the cost of their benefits as their population’s health improves and experience gains in employee productivity as the result of the onsite clinic."
Controlling Obamacare Costs
Many aspects of the Affordable Care Act, known as Obamacare, are still under discussion for possible delay or even repeal. However, Kim Beck of insurance broker Cottingham & Butler, offers a few possible strategies to keep down additional costs the law could mean for employers:
1. Use participation in wellness programs and/or results of biometric screenings to reward healthier employees with lower premiums or more attractive benefits. The ACA allows this if certain guidelines are followed.
Some companies, Beck says, are taking this to an extreme. "We have employers saying, 'We're going to make the standard rate really high, and the incentive rate really low. We want unhealthy people to go to the exchange and we don't even care if we get penalized for it because it's cheaper than having them on our healthcare program.'"
2. Use a "defined contribution model." Here the employer pays a set amount toward the employee's health insurance, say $300 a month, then allows employees to "buy up" to a better plan using a choice of multiple plan design options. Walgreens is one company that has gone this way. It will allocate a fixed dollar amount for employees to use toward their choice of 25 health insurance plans offered through a private health exchange.
3. Don't offer coverage for spouses. The law only requires covering children (starting in 2015). UPS made news in August when said it will discontinue coverage for all working spouses who are eligible for insurance with their own employer. Although it blamed Obamacare costs, Beck noted that even before ACA, there already were many companies who do not offer coverage for spouses if they can be covered by their own employer's plan. In the trucking industry, she said, it's fairly common.
Since spouses will now have the option to go to the exchanges for coverage, companies could drop offering coverage for spouses at all. This actually could benefit the spouse if the spousal coverage your company offers is full price, not subsidized.
4. Offer "tiered" benefits. This could mean more expensive premiums for families with more children, for instance, or different coverage for different locations or divisions. Or coverage could be less comprehensive during the first year of employment, giving drivers extra incentive to stick around past that first high-turnover year.
There are other strategies, including "skinny plans" that exclude or severely limit coverage for catastrophic and expensive services but still meets the minimum value rule. These "skinny plans" have a lot of buzz in the marketplace, she said, but these and some other strategies may save money up front but will hamper companies in recruiting and retaining employees.
More Drivers

Why Hiring Truck Drivers Is Getting Harder
Higher recruiting costs, a shrinking driver pool, and renewed pay competition are raising the stakes for fleets heading into 2027.
Read More →
Roehl Offers Truck Drivers $10,000 Retention Incentive
Payments begin after the first load and continue in mileage-based installments for eligible experienced drivers joining the fleet.
Read More →
Platform Science Adds Dispatch and Safety Tools
Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.
Read More →
When Language Stops the Truck: The Return of ELP Out-of-Service Orders
English language proficiency rules for commercial drivers aren’t new, but renewed out-of-service enforcement has raised the stakes. Here’s what carriers need to know before a driver reaches a roadside inspection.
Read More →
Samsara Launches Custom AI Agent Builder
Agent Studio lets fleets create AI tools for hours-of-service monitoring, reporting and driver support, including agents that communicate by phone.
Read More →
Trucker Path Expands Reserved Parking Network
Trucker Path has added close to 6,000 more truck parking spaces to its Trucker Path Reserved Parking Network with the addition of Safe Truck Parking.
Read More →
EEOC Sues Texas Trucking Company Over Driver Age Limits
The agency says Trancasa USA rejected applicants over 65 and applied tougher driving-record standards to those over 60.
Read More →
Nussbaum, Roehl Announce Second Driver Pay Increase This Year
This year has seen a swath of major truck driver pay increases as freight capacity has tightened.
Read More →
From One Generation to the Next: How Mentorship Builds Safer Truck Drivers
After three decades in trucking, Harold Perry shares what he's learned about driver safety, mentorship, and helping the next generation build confidence behind the wheel.
Read More →
Truck Drivers Need More Than Another Alert
Fleets have more visibility into truck health, safety events, and driver activity than ever. The next challenge is turning all that information into useful guidance for the person who has to decide what to do next.
Read More →
