Health benefit costs will increase further next year due to inflation, increased healthcare consumption after 2020, and the high cost of retaining doctors and nurses amid the ongoing pandemic, among other factors. Benefits advisors, employers, and carriers need smart strategies to continue delivering valuable health benefits to help retain workers while protecting bottom lines.
Meanwhile, employees have been strained by years of increasing bonuses and cost sharing. Research shows that 60% of Americans should borrow to cover an unexpected expense of $ 1,000, but the average worker with employer-sponsored health insurance has a deductible of $ 1,644. Those with high deductibles are even more exposed to the cost of a health problem.
In the hopes of building a world where health problems do not create financial hardship, we interviewed industry leaders and worked with counselors and employers to find new ways to improve health benefits in this difficult environment.
Here are five proven tactics to help improve health benefits while keeping costs down:
- Customize package offers– The one size fits all. Workforce expert Lindsay Pollack reminds us that today’s workforce has five generations working side by side. Design health benefit packages that are tailored to the needs of different groups within the organization. Consider conducting confidential interviews with employees across the entire team to understand what they value most, what keeps them awake at night, and what they expect from their health benefits. Use this information to redesign plan options and remove features the team doesn’t like.
- Financing a complementary health planâYou may find that many workers are already dangerously exposed to high medical bills if they were to have a serious health problem during the year. HSA savings take a long time to accumulate and often never reach a balance high enough to offset personal expenses. Add more money to the picture with an additional plan that pays a lump sum if an employee becomes ill or injured. Look for a plan with extensive coverage and a straightforward claims process so the team can rest easy knowing they’ll get extra coverage if something happens.
- Stop investing in underutilized perks– The health benefit is the most critical of all the benefits offered. You can find additional benefit dollars for health benefits if you carefully examine the benefits that have only been used by a few employees in recent years. It may be worth disappointing the few people who have used these ancillary benefits in order to make the provision of health benefits more robust for everyone.
- Adopt digital health solutions– The pandemic has dramatically accelerated consumer adoption of telehealth solutions that reduce travel time and exposure to seeing a health care provider. New providers such as Eden Health, Maven, Ginger and Hinge are providing primary care, women’s health care, mental health care and even physiotherapy to home workers, saving time and money by course.
- Increase Profit LiteracyâIt’s a shame for employees to miss out on the value of their health plan simply because they don’t understand them and often choose the wrong plan. Data shows that the vast majority of employees buy too much health insurance, and we know that low literacy in health benefits can lead to underutilization of preventive care and higher hospitalization rates. registration and registration with them throughout the year.
Veer gidwaney is the founder and CEO of Brella Insurance. Previously, he was the co-founder and CEO of Maxwell Health, which was acquired by Sun Life in 2018. Veer is a recognized entrepreneur and insurance innovator whose energy and experience has long been devoted to solving the problems of our time. Veer lives with his family in the greater New York City area.