Health Wellness Benefit Offerings: The Challenge Continues
The employee benefits landscape for US employers continues to face escalating costs. These health care increasing costs are a result of changes in laws as well as various initiatives and options in health care benefits. The expectation to manage the costs has not decreased for HR and their financial partners; and, in fact has increased. How can an organization meet the challenges? Following are three key tips to stimulate the discussions.
Do you need to offer benefits? With these rising costs, many employers thought they might approach the matter by discontinuing benefit options for their employees and allow the employee to go directly to the market. Employers quickly learned that employees look at benefit offerings from companies; therefore, offering benefits contributes toward retention. Conversely, attracting talent to the organization includes an overall total benefit package that reflects a competitive health care benefit package. Recent surveys indicate that employers have significantly increased their total benefit packages in areas of wellness and preventive strategies. An employer may find that if a top candidate has two job offers, the benefit package may tip the candidate in their favor.
Do you align the benefit review analysis with HR and the finance team? If not, this is a key step strategy. The finance team within the organization must meet the financial business strategies demanded; however, HR must maintain a due diligence approach to build awareness of the implications of decreasing benefit offerings while offering creative solutions to this complex problem. The solution is no longer a simple process of controlling a premium expense. Rather, the solution requires ongoing education for business leaders, HR, and employees about health care management strategies and rising health-care costs.
Do you examine health coverage cost strategies? There are several trends occurring today that should be in your discussions with your broker and internal business team. There are short-term cost containments and long-term cost containments. A few include reviewing benefit offerings to new hires; i.e., consider less generous offerings when compared to current employees. Additionally, many employers are consolidating benefit offerings with third-party providers with employees, as well as creating incentive rewards [long-term]. Longer term strategies include creating an organization culture that promotes health and wellness and emphasis on employees’ utilization of their health care benefits. These programs can be in the form of managing chronic health issues common to today’s demographics; such as, obesity, diabetes, or hyper-tension conditions.
The simple three-point discussion is only the beginning. The broker should be the partner and help guide the organization through various trends and fresh solutions. The insurance renewal process shouldn’t take place in the zero hour. The process should be ongoing throughout the year by discussing current trends, cost strategies, and employees’ concerns.
