How Inflation Might Affect Your Health Insurance
Author: From our expert member in Talent Management and HR – RRC RESOURCES
It’s been a tough year for employers, from supply chain slowdowns to staff retention issues. We’ve got one more item to add to the list: now it’s costing many companies more for their employee insurance plans. Why is it costing more? Health insurance carriers are attempting to recoup losses incurred during COVID. If that wasn’t bad enough, inflation negatively impacted premium costs, making the upcoming open enrollment period more challenging than usual.
While it is important to work with your broker to find cost-cutting strategies, it is also important to make sure employees are receiving the right level of benefits. One of the most effective ways to get feedback is through an employee survey. A survey can reveal important information, such as:
- Should out-of-network providers be covered?
- Should the deductible be increased?
- Does the company need more than one plan to accommodate all employee needs?
- What voluntary benefits might help reduce employee out-of-pocket costs?
- What are employees willing to trade off to reduce their premium expense?
Now is the time to find out what’s most valuable for workers and adjust the health benefits package instead of rolling over last year’s benefits. Many people automatically make the same benefits choices as the previous year without considering if the benefits are still appropriate or if they are paying for more than is necessary.
It is also important that workers fully understand their benefits options and make informed decisions to protect themselves and their families.(www/benefitspro.com) Employers can do a number of things to make sure that employees are matched with the best benefits:
Inflation and health insurance
- Communicate year-round about benefits and not just at year’s end, so employees are better prepared at decision time.
- Ask for assistance from an experienced broker. He/she can help schedule a benefits review, meet with employees, produce communication materials and help employees evaluate plan choices The broker should also explain how he can assist in employee advocacy.
- Use a variety of tools to reach the workforce, including emails, webinars, one-on-one support, educational videos, interactive decision support tools and social media.
- Explain services that may come with insurance coverage, such as an employee assistance program or will-preparation services.
- Offer voluntary programs to assist with out-of-pocket expenses and fill in coverage gaps.
Employers can also reduce costs by reviewing how benefits are funded. In many cases, a level-funded, or self-insured plan will be less costly than a fully-insured one. Tax-advantage programs such as Health Reimbursement Arrangements (HRA’s) or Health Saving Accounts (HSA’s) can assist with out-of-pocket costs. They are effective in allowing a higher deductible to be funded on an as-needed basis or to save for future expenses. For some industries, Minimum Essential Coverage (MEC) plans might make sense, especially for low-income employees.
We offer a program called “How to be a Savvy Purchaser of Health Insurance”. To get more information about this program or other questions answered by this expert, please go to our resources page, look in the category of ‘Talent Management and HR’ and select ‘Employee benefits consulting and implementation’ to see our company profile. When you click the ‘Introduce Me’ button, you’ll get an email introduction with our CEO’s contact info, and we can answer all your questions.
