Empower your employees—treat them like insurance consumers

Corporate Synergies

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Most people wouldn’t buy a car without shopping around and doing online research first. They want to make sure they’re getting the best value for their money, that the vehicle will suit their specific needs, and that they’ll be able to safely transport their families where they need to go.

You’d think that people would show similar interest when shopping for healthcare insurance. Yet research shows that 89% of people select the same health plan year after year, even when given other options. The same survey shows that 49% of employers agree that group employee benefits communication must be improved, yet most employers aren’t doing anything to address the issue.

So what’s the disconnect?

Employees often fail to evaluate their benefit options for several reasons. New employees may be overwhelmed with information upon starting a new job and may simply view benefit selections as another item on their to-do list. Veteran employees may view the paperwork as cumbersome and confusing so they retain their existing plans, deciding that what was good enough last year will also work this year, even though their needs may have changed.

And that’s only with their base benefits. The situation can be worse with Voluntary benefits, such as life insurance and disability. Unfortunately, it’s not uncommon for employees to realize that they failed to sign up for disability only at the time they go to file a claim. Or, employees may hear about voluntary benefits from another employee and complain that they didn’t get the chance to enroll as well.

What happens then?

Risks of Uninformed Employees
There are several risks involved with uninformed or under-informed employees:

  • They may miss out on benefits they’re entitled to
  • They may choose a plan that is not appropriate to their needs
  • They may choose treatment options that are more expensive than necessary. For example, they may seek treatment at an emergency room when they could’ve visited an urgent care facility instead at a lower out-of-pocket cost.

Each of these possibilities creates risk for the employer as well; these types of behavior cost employers money. On top of that, organizations may face legal trouble if their employees don’t understand their benefits. If an employee or dependent is denied benefits after death or disability—or if they believe they weren’t given the opportunity to elect benefits when eligible—the employer may have a lawsuit on its hands.

Missed deadlines have recently become even more critical. With healthcare reform, there’s decreased ability to retroactively add people to plans if they miss sign-up deadlines. In the past, carriers may have been more inclined to back-date an enrollee. That option is now off the table.

How to Close the Information Gap
So how can you help ensure that employees are taking a proactive role in their healthcare selections? Stop treating them like employees and start treating them like health insurance consumers. Here’s how:

  1. Create a consistent message about your organization’s healthcare offerings and then disseminate information the same way you would a marketing campaign:
    1. Schedule your message to repeat 3 to 4 times per year.
    2. Deliver the information in bite-size chunks in the form of fliers, email messages, and posters.
  2. Remember that if people feel overloaded they’ll tune your words out, so be as brief as possible. Encourage employees to meet with you face-to-face if they have questions.
  3. Be a translator. Break down any dense language so your workforce is able to understand what features are included in different plans (i.e., how their deductibles function, what it costs to go to an out-of-network doctor, etc.).
  4. Make sure employees know where to go to find information, such as your company’s intranet. Keep in mind that the harder it is to find information, the less likely people will be to seek it out.

Remind Them to Go “Car Shopping”
Encourage employees to approach benefit shopping the way they would car shopping. Then give them the tools to do so.

  • Suggest they compile their yearly healthcare costs—such as the estimated number of doctor visits, special procedures, and prescriptions—and run side-by-side comparisons in their benefits administration platform to determine what their actual costs will be.
  • Remind your employees that a higher cost doesn’t always equal a better-quality plan.
  • Consider a benefits administration technology solution with decision-support tools that compare costs and features of different plans.
  • Link to your insurance carriers from your intranet so that employees can view benefits easily.
  • Provide tools that help decipher the costs of service at different providers, as well as prescription cost calculators. Some helpful websites include:
www.medicinenet.com www.mayoclinic.com
www.healthgrades.com www.goodrx.com
www.healthcommunities.com www.webmd.com

If an employee needs treatment for a condition, encourage a consultation with your broker’s employee advocacy support representatives to find out which healthcare providers have the best outcomes for certain procedures.

The upshot: Understanding that employees need help digesting benefits information is key to ensuring that they’re are able to take full advantage of their insurance options. Giving them the tools to ease this process not only helps ensure healthier employees with higher morale, it helps contain costs for the employer.

i Open Enrollment Survey of the Aflac WorkForces Report [AWR]


©2015 Corporate Synergies Group, LLC. No part of this material may be republished or distributed without prior written consent.