Your employee benefits plan shouldn’t be like a trip to an amusement park, full of thrills and excitement. Instead, it should be predictable, stable, and clear. You should know exactly what you’re getting, why you’re getting it, and how much it’s going to cost.
If there are too many unpleasant surprises when you renew your benefits plan, it means something, somewhere has gone wrong.
Here are three ways to de-risk your benefits plan:
1. The Risk of Price Volatility
This is the number one concern we hear from the marketplace: why does the cost of my benefits plan take wild swings? Deep first year discounts evaporate in years two and three and you’re in worse shape than when you bought the plan in the first place.
Mitigate this risk: the roller coaster of benefits plan pricing never works to your advantage. Instead of looking for deep discounts when you shop your plan (which will always get clawed back later on), embed cost containment solutions right into your plan! This will eliminate plan cost changes driven primarily by insurance company sales targets.
2. The Risk of Paying Too Much
The cost of employee benefits is driven by a number of key factors – but ultimately, your claims experience is the single most important factor. When you control your claims, you can control your cost.
Mitigate this risk: make sure that big cost items, like prescription drugs and disability coverage, are designed well. At GroupHEALTH, that means plans using unique Smart Rx solutions to lower drug costs, and disability management services, to get employees quickly and safely back to work when they’re absent from work due to illness or injury.
3. The Risk of Irrelevance
Employee benefits should be useful to your employees. Otherwise, you’re paying for a service that isn’t doing what it should be doing: providing coverage that people need.
Mitigate this risk: an expert advisor should look at your plan regularly to ensure you have the coverages and benefits you need and encourage questions and education. Plus, at GroupHEALTH, this means automatically adding embedded or low cost like virtual healthcare that keeps your plan relevant and practical for your employees.