The Value of a Long-Term Employee Benefits Strategy
It’s safe to assume the overwhelming majority of employers have a vision and plan for growth, sustainability and overall success… let’s at least hope!
Even employers that aren’t in the business of generating revenue such as not for profits, municipalities, education-based employers, etc. still plan for overall expenses and funding to ensure there’s enough balance to continue to do the amazing things they do.
With health insurance often the second largest expense for an employer (and in many instances uncontrollably growing), it’s astounding to learn very few employers have a long-term strategy to reign it in.
The mechanics of health insurance and logistics behind the cost drivers can be complicated. However, there are proven strategies and concepts which reduce medical claim costs, in turn helping contain, if not reduce, the cost to employers and employees.
For example, consumer-driven health plans on average reduce claim costs by 15% and significantly increase member healthcare engagement when compared to traditional PPO copay based plans. Moving from a fully insured medical program to a partially self-insured medical program generates an average savings of 7% in overall cost as well as greater control of overall plan expenses. Why then have so few employers adopted long-term benefit program strategies to help meet the overall goals of their organization?
Well, in my humble opinion, they just haven’t met the right benefits consultant.
But the more thorough answer is twofold: first, what you don’t know you don’t know, and second is the issue of time and effort. There’s a lot of time and effort that goes into creating a long-term benefits program as well as implementing and managing the plan. The implementation part generally requires many moving parts like employee education, communications, wellness initiatives, tracking results, constant monitoring and more. This can be a daunting task. Fortunately, if approached properly, the results are strikingly positive and impactful.
So, as employers plan for success, managing their employee benefits expense is a key aspect to not only position their organizations for growth, but also provide consistency and sustainability to healthcare and employee benefit costs.
Fortunately, at Assurance, we have the personnel in-house to support employers in all areas of this process. From drafting a strategy to communicating educational materials to employees to tracking overall success, we have the capabilities to be the advocate so many willing employers need.
By the way – long-term planning isn’t just specific to employee benefits, this is also applicable to workers’ compensation and other property and casualty lines of coverage. Contact a member of the ‘A’ Team to learn more.
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