- 2016 MetLife Employee Benefit Trends Study
- Journal of Health Economics, “Consumers’ misunderstanding of health insurance“.
Hi, I’m Andrew Brickman, Director of Benefits Administration at Corporate Synergies. Welcome to this episode of BeneMINUTE. Today, I will highlight the importance of offering decision support tools to help your employees make good benefit decisions.
Why are decision support tools important? It is vital for 2 reasons.
One, so employees make the right benefit choices for their unique circumstance, and two those employees have an overall positive impression of your benefit programs. According to a recent MetLife study, employees who are satisfied with their benefits are 4 times more likely to be satisfied with their jobs. Employees are also demanding choice like never before. From that same MetLife study, companies that offer between 11-15 benefit offerings are more likely to have employees recommend those companies as a great place to work. But, with choice comes risk.
Employees don’t always understand their benefits. The Journal of Health Economics cites 86% of people can’t correctly define the term co-insurance, deductible, co-pay and out-of-pocket maximum. Combing choice with confusion could lead employees to select the wrong benefit plans resulting in dissatisfaction with benefits. That dissatisfaction has the potential to reflect poorly on you, the employer. Well configured decision support tools can help eliminate this confusion and guide employees to smarter selections.
Decision Support Tools that help employees understand behaviors, highlight risk tolerance and determine utilization are typically the best. Making the decision support tool part of enrollment is also a must. Giving employees resources to learn about benefits in a simple and engaging way will add value.
The employee benefit landscape is more complicated than ever. Having the right tools to guide employees is crucial if you want to leverage benefits as a way to attract and retain top talent.