Today, 60% of Americans are considered “over-insured,” meaning that while they’re enrolled in coverage, it’s either too robust for their needs or they’re not using it to their advantage. With the average cost to insure a single employee hovering around $6,500 a year for an employer, the dollars can add up quick.
A supportive employee benefits experience designed to help guide employees to benefit options best fit for their total wellbeing (not just their wallet) can pay dividends; HR teams just need to ensure they have the right resources in play.
Here’s how HR teams can help manage their benefit spend by helping their employees understand what benefit options are best fit for their needs.
It’s no secret that healthcare costs are rising this year—as they do every year. But 7 in 10 employers say they won’t pass those cost increases through to their employees, making it all the more critical for organizations to market the value of cost-effective plans.
According to Businessolver’s data, 45% of employees say they would feel panicked about a large, unexpected expense (like an ER bill) and only 30% say they have savings to cover such an expense. With these stats in mind, HR teams should consider how to market the value of cost-effective health plans and savings vehicles, like high-deductible health plans and a health savings account, to offset the financial stress often associated with unexpected health events.
Our top tips for demystifying the value of HDHPs:
When decision support is in play, 60% of employees elected a cost-effective health plan with a savings vehicle. Only 20% did so when decision support wasn’t available to them.
Decision support tools guide employees toward benefit options that are best fit for them based on a variety of needs. Businessolver’s tool, the MyChoice® Recommendation Engine, evaluates an employee’s options by asking them a few simple questions to assess their financial wellbeing, risk tolerance, health needs, and lifestyle.
Because employees’ needs are all unique, helping guide their decisions based on more than just cost and “how often do you think you’ll visit the doctor” can help employees plan more stability into their wellbeing while also understanding how other factors—such as prescription medications or risky behaviors—play a role in benefits selection.
Personalization can drive benefits engagement in ways that are meaningful and relevant. Because each employee’s needs are unique, their need to select and take action on the appropriate benefits will also be unique. Scaling personalization across the experience can help employees connect their needs to the value of the benefits available while reducing the administrative burden for HR.
73% of consumers expect a personalized experience and benefits are no exception. Businessolver’s own data shows that personalization is a critical component of long-term employee benefits engagement, powering the ability to meet people wherever they are in the experience with meaning and relevance.
When personalization and empathetic experiences designed to help connect those dots are in play, the friction between employees and their benefits decreases—and this can have a lasting impact on a business’s ROI and cost management efforts.
See how personalization plays a role in right-fit benefit election: Benefits Insights