Smart Benefits: More Employers Offering More Health Plan Choices
Monday, February 24, 2014
Employers faced with spiraling healthcare premiums are offering employees more plan choice as a way to regain some control.
Options Optimum for Employers and Employees
Offering a choice of plans means employers can fix their share of the contribution to the lowest cost plan to help control expenses long term – a structure considered to be defined contribution. And more options can help employers attract and retain employees.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTFor employees, having a choice means they can decide which plan is right for them. Rather than just having one plan that can make employees feel they are paying for benefits they don't use, adding plans that appeal to different types of employees helps workers feel empowered, boosting their satisfaction.
Law Firm Leads With Choice
One local law firm offers a choice of three plans to appeal to the different interests and needs of its employees.
- There is a low, $500 deductible plan with a higher premium that appeals to those who use services more frequently and are willing to pay more weekly to have less out-of-pocket expenses when services are used.
- They offer a Health Savings Account (HSA) plan with a $1,500 deductible for those who want a tax advantage and the opportunity to save money for future healthcare needs, even though they may not use services now. And the firm even contributes to the HSA for employees.
- The firm has a $3,000 high deductible plan with copays on certain services rather than deductibles. This plan offers a really low premium and is designed for those who don’t anticipate using higher cost services and want to spend less money on health insurance.
With the choice of three plans, employees feel the benefits decision is in their hands, increasing employee satisfaction with the firm’s benefits program. The options also offer more financial flexibility for those who need it.
Carrier Choice a Trend
The trend towards choice reflects what’s happening in the healthcare marketplace. Until recently, carriers have limited plan choice, mostly to one to two plans. However, healthcare reform has created a marketplace of individual choice through the public exchanges. Both the Rhode Island and Massachusetts exchanges offer a variety of plans for individuals to select from. And, even small businesses going through the public exchange shops are able to offer a multitude of plan choices around a defined contribution model.
However, there’s a potential downside to the exchange plans: too much choice can overwhelm individuals who are trying to make a decision on which plan to purchase. Private exchanges emerging all over the country have responded with less choice than the public exchanges, but more options than an employer typically offers – as many as six plans. But private exchanges are new and their technology-driven platforms and enrollment features are meant for computer savvy individuals. For employers not ready to take the leap to a private exchange, adding plans may be a smart choice in the meantime.
Amy Gallagher has over 21 years of healthcare industry experience guiding employers and employees. As Vice President at Cornerstone Group, she advises large employers on all aspects of healthcare reform, benefit solutions, cost-containment strategies and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, and is often quoted by national publications on the subject matter. Locally, Amy is a member of SHRM-RI, the Rhode Island Business Group on Health, and the Rhode Island Business Healthcare Advisory Council.
Related Slideshow: New England’s Healthiest States 2013
The United Health Foundation recently released its 2013 annual reoprt: America's Health Rankings, which provides a comparative state by state analysis of several health measures to provide a comprehensive perspective of our nation's health issues. See how the New England states rank in the slides below.
Definitions
All Outcomes Rank: Outcomes represent what has already occurred, either through death, disease or missed days due to illness. In America's Health Rankings, outcomes include prevalence of diabetes, number of poor mental or physical health days in last 30 days, health disparity, infant mortality rate, cardiovascular death rate, cancer death rate and premature death. Outcomes account for 25% of the final ranking.
Determinants Rank: Determinants represent those actions that can affect the future health of the population. For clarity, determinants are divided into four groups: Behaviors, Community and Environment, Public and Health Policies, and Clinical Care. These four groups of measures influence the health outcomes of the population in a state, and improving these inputs will improve outcomes over time. Most measures are actually a combination of activities in all four groups.
Diabetes Rank: Based on percent of adults who responded yes to the question "Have you ever been told by a doctor that you have diabetes?" Does not include pre-diabetes or diabetes during pregnancy.
Smoking Rank: Based on percentage of adults who are current smokers (self-report smoking at least 100 cigarettes in their lifetime and currently smoke).
Obesity Rank: Based on percentage of adults who are obese, with a body mass index (BMI) of 30.0 or higher.
Related Articles
- Smart Benefits: Bright Future for Primary Care in Rhode Island
- Smart Benefits: Make the Most of Your Health Plan in 2014
- Smart Benefits: RI Exchange Leads Way With Focus On Small Business
- Smart Benefits: Calmar Cancels Out Pain
- Smart Benefits: Mobile Apps + iPads The Key To Wellness Success
- Smart Benefits: Survey Reveals Employees and Taxpayers Hit Hardest
- Smart Benefits: Consumer Engagement is Key to Better Healthcare
- Smart Benefits: New Study Shows Health Costs Hurt Small Biz Hiring
- Smart Benefits: Tufts’ RightChoice Keeps it Simple for Consumers
- Smart Benefits: Employers Who Ignore Obamacare Will Pay
- Smart Benefits: Next Steps in Healthcare Reform for Employers
- Smart Benefits: Will HealthSource RI Meet Enrollment Expectations?
- Smart Benefits: Flexible Spending Accounts Get More Flexible
- Smart Benefits: Obamacare Brings Big Changes to Small Employers
- Smart Benefits: Will You Be Affected by the New Medicare Tax?
- Smart Benefits: Health Insurers Go Retail
- Smart Benefits: Pay or Play Delay Could Bode Well for Employers
- Smart Benefits: 3 Ways Obamacare Hurts Employees
- Smart Benefits: Healthcare Is A-Changing
- Smart Benefits: Polls Show Most Americans Skeptical of Obamacare
- Smart Benefits: A Bad Week Brings Reactionary Changes to Obamacare
- Smart Benefits: Low Exchange Enrollment Means More Taxpayer Costs
- Smart Benefits: Private Exchanges Open Up New Opportunities In RI
