healthcare Archives

Managing Employee Healthcare Costs in 2021

by LizStevens | Nov 4, 2020 | Blog

Managing employee healthcare costs in 2021. What the average health insurance premium costs and changes employers are making to health benefits offerings in the new year.

The ever increasing cost of healthcare combined with uncertainty about coverage, deductibles and copays keep some employees from getting the medical care they need.

More than 40 percent of employees have deferred medical care because of financial concerns, according to research by Willis Tower Watson. According to the Kaiser Family Foundation, the average annual premium is $7,470 for single coverage and $21,342 for family coverage in 2020. The average family premium has increased 55 percent since 2010 and 22 percent since 2015.

In spite of these increases, 56 percent of employers don’t plan to make any changes to reduce medical plan costs in 2021. Indeed, many plan to add new resources to better support healthcare needs in light of COVID-19.

Managing Employee Healthcare Costs in 2021

Employers are focused on improving employee healthcare by adding virtual or telehealth offerings and including voluntary benefits in 2020, according to research by Mercer. The good news is that both of these initiatives can help reduce healthcare costs.

Over 25 percent of employers are adding digital healthcare resources, like telemedicine for episodic care, artificial-intelligence-based symptoms triage, ‘text a doctor’ apps and virtual office visits with a patient’s own primary care doctor. These options are often less costly than traditional visits and are especially helpful during COVID-19 when physical visits aren’t always an option.

More than 20 percent of employers plan to add voluntary benefits, such as critical illness insurance or a hospital indemnity plan. Voluntary benefits are low-to-no-cost for employers because employees pay for them and maintenance is often handled through payroll deduction. They’ve risen in popularity in recent years as it became clear that a one-size-fits-all group benefits model wasn’t working for a multigenerational workforce. Voluntary benefits let employees personalize their level of coverage and choose a benefits plan that fits their needs without a significant impact on employer health spending.

Managing Out-of-Pocket Costs in 2021

Just 4 percent of employers plan to prioritize limiting surprise or balance billing in 2021, but many employees receive surprise medical bills they can’t afford to pay.

According to a survey by HealthCareInsider, 28 percent of employees received a surprise medical bill in the past year. A similar percentage said they carry medical debt and for 65 percent their medical debt exceeds $1,000. Nearly 60 percent of employees are concerned a health scare in their household could lead to bankruptcy or debt.

Fears about the costs of healthcare haven’t necessarily led to a change in benefits behavior. The vast majority of employees (92 percent) choose the same benefits year after year and spend an average of 33 minutes or less on the task.

Employers should make working with health insurance brokers to help employees better understand the difference between healthcare plans and estimated out-of-pocket costs for various services a higher priority. It’s a strategy that can reduce healthcare costs and assist in other employer initiatives, like reducing financial stress and increasing productivity.

Preparing for Virtual Open Enrollment in 2020

by LizStevens | Sep 9, 2020 | Blog

Preparing for virtual open enrollment in 2020. How employers can utilize employee data and streamline communications for successful virtual open enrollment.

Employers are preparing for virtual open enrollment as many employees continue to work remotely during the COVID-19 pandemic.

It’s more important than ever that employees make informed decisions about their benefits because many organizations have been forced to make significant changes to their benefit plans as they face new economic uncertainty. But that doesn’t mean they will. A survey by MetLife found that employees dread open enrollment almost as much as going to the DMV to renew their driver’s license and 20 percent of them spend only a few minutes reviewing benefits plans before making a selection.

In order to reduce unnecessary costs and ensure that employees enroll in the programs that best suit their needs, employers need to utilize employee data and streamline benefits communications for successful virtual enrollment.

Preparing for Virtual Open Enrollment in 2020

Managing Costs While Meeting Needs

Employers are walking a fine line as they strive to lower program costs while still meeting the needs of their employees.

Their primary challenges when it comes to healthcare cost-management are the high cost of medical services (67 percent) and specialty drugs (47 percent), according to research by Gallagher. In an effort to reduce unnecessary costs, employers are conducting audits of plan eligibility (18 percent) and claims (15 percent), as well as considering narrow provider networks (14 percent), designated centers of excellence (10 percent) and integrated health and disability management programs (9 percent).

COVID-19 has also accelerated a trend towards telemedicine as a cost-control tactic. Telemedicine provides employees with socially-distanced care options and is often less costly than standard office visits or trips to emergency rooms and urgent care facilities.

Utilizing Employee Data and Streamlining Communications

Nearly 65 percent of employers use employee-initiated feedback and 45 percent rely on satisfaction and engagement surveys to measure their communication success. Gallagher encourages employers to take a closer look at the data they have at their disposal, like web analytics and portal visits to determine what’s working and what isn’t.

When it comes to communicating for successful virtual open enrollment, employers should focus on sending smaller bite-sized benefits communications that employees can more easily digest, rather than overwhelming all-in-one emails that they’re likely to just skim, if they read them at all. It will also help to clearly identify who employees can reach out to with any questions about programs or offerings.

Open enrollment is just as stressful for employees as it is for employers and moving it fully online inevitably creates some challenges. Sending less bulky communications that break down the process without complicating it will help employees pay closer attention and enroll in the benefits that they can use most.

Coronavirus and Financial Stress: How Will Employees React?

by LizStevens | Mar 5, 2020 | Blog

Coronavirus and financial stress: how will employees react? They’re worried about losing pay, their jobs and being unable to afford the costs of healthcare if they’re infected with COVID-19.

Update: The number of coronavirus cases and deaths in the U.S. were updated as of April 13th, 2020.

There are more than 500,000 known cases of the new coronavirus, COVID-19, in the U.S. and over 20,000 people have died. Stores everywhere are selling out of hand sanitizer, face masks, groceries and household supplies as Americans panic about an outbreak reaching their neighborhood.

Employees, especially those in industries like hospitality, retail, healthcare and food service are fearful of what will happen if they’re infected with the coronavirus. Without the ability to work remotely, they worry about losing pay or their jobs while they’re quarantined.

“We’re seeing a significant number of employees register higher levels of financial stress in the past two weeks, which isn’t much of a surprise given the financial ramifications of catching coronavirus,” said Ilyce Glink, CEO of Best Money Moves.

More than 75 percent of employees live paycheck-to-paycheck. Nearly 40 percent couldn’t come up with $3,000 if an unexpected expense arose in the next month, according to a report by Willis Tower Watson.

One thing is clear: The coronavirus is heightening the financial stress employees experience every day, further damaging employee productivity and engagement.

Financial Stress and the Coronavirus: How Will Employees React?

“Financial health is not just about income. The impact of financial problems on employees’ health and stress, even for those who aren’t living paycheck to paycheck, is unmistakable,” said Steve Nyce, senior economist, Willis Towers Watson.

Money is a significant source of stress for 90 percent of employees, according to research by Thriving Wallet. More than 60 percent of employees feel as though their financial difficulties are piling up so much they can’t overcome them and 25 percent make purchases they later regret when experiencing financial stress.

Even a high salary doesn’t always salve financial woes — 18 percent of employees making more than $100,000 annually live paycheck to paycheck. Some employees are unable to pay for basic needs like healthcare, while others are having trouble saving for retirement.

And for employees who get sick, high-deductible healthcare plans have shifted much of the cost onto the shoulders of already struggling employees, who must find a way to come up with the initial costs of care for themselves and their families. (As of this writing, it’s unclear whether the US will shoulder the cost of testing for coronavirus, if insurance will cover it, or if employees themselves will have to pay that cost. Regardless, if an individual is forced to quarantine, the financial cost will be painful.)

Willis Tower Watson defines those who are “struggling” financially as those who live paycheck-to-paycheck and have difficulty controlling spending. Over 60 percent of those who are “struggling” aren’t fully engaged at work. Close to 40 percent said money concerns keep them from doing their best at work. More than 40 percent of “struggling” employees reported suffering from stress, anxiety or depression over the past two years, compared with just 16 percent of employees without financial worries.

Roughly 40 percent of Americans don’t have emergency savings and skip medical care they can’t afford. If those employees get sick, they might not get tested and come to work sick, infecting colleagues and limiting productivity.

How Financial Wellness Programs Pay Off

Even in a good economy, the majority of employees say financial stress is their top stressor. In a bad economy, that number grows exponentially.

A good financial wellness program can ease financial stress and help employees boost their financial wellbeing. Willis Tower Watson found nearly 70 percent of employees who were given access to four or more financial wellness tools said their finances are headed in the right direction. Over 60 percent of workers said those resources met their needs and encouraged them to improve their financial situation.

“We believe, with the right actions and insights, employers can help lower the financial risks that workers face. Access to the appropriate benefits and decision tools is a great start. These employer resources should include supportive social connections, such as coworkers and family, all of which can help employees keep and enjoy more of their money and, ultimately, improve wellbeing,” concluded Shane Bartling, senior director, Retirement, Willis Towers Watson.

Best Money Moves is a mobile-first financial wellness program with a wide range of tools to help employees measure financial stress and then dial it down. Our Stressometer measures stress in 14 categories and uses artificial intelligence to push relevant, contextualized and personalized information, tools, and solutions to users to solve the biggest pain points quickly.

We have a library of over 700 calculators, articles and videos, a budgeting tool that does the math, and tells workers what their neighbors are spending in the same category.

Best Money Moves is also gamified, it features a point-based rewards system where users earn points every time they log in, work with their budgets, read articles and measure their stress. Each point translates into a chance to win a monthly contest.

How Will the Coronavirus Impact Your Business?

by LizStevens | Mar 3, 2020 | Blog

How will the coronavirus impact your business? Employers respond to the spread of COVID-19 with strategies to help employees who don’t want to get tested or take time off.

Update: The number of coronavirus cases and deaths in the U.S. were updated as of April 13th, 2020.

The Center for Disease Control (CDC) is monitoring an outbreak of respiratory illness caused by the new coronavirus, COVID-19. Over 500,000 cases have been detected in the U.S. since January 21, 2020, resulting in over 20,000 deaths.

There are a lot of workers out there who don’t have emergency savings and skip medical treatments they can’t afford. If those employees get sick, they might try to “push through it” and bring the virus to the workplace, infecting colleagues and further limiting productivity.

Mercer has released a report to help employers understand how the spread of the coronavirus will impact their employees and how they should respond to it.

How Employers Are Responding to COVID-19

The initial employer response to the coronavirus has been to stay informed, protect and minimize exposure and take precautions, according to Mercer. This is what companies are specifically doing to minimize COVID-19’s impact on their business:

96 percent of employers are not ending expatriate assignments.
72 percent postponed nonessential travel to countries where there are confirmed cases of the COVID-19.
68 percent are providing hand sanitizer in the workplace.
58 percent are arranging for greater flexibility to work from home.
58 percent are requesting self-quarantine of 14 days for staff that recently traveled to mainland China.
48 percent are providing masks in the workplace.
43 percent have instituted a mandatary self-quarantine.

How Will the Coronavirus Impact Your Business?

Nearly 90 percent of global employers are concerned about how the coronavirus will impact their businesses. Over 20 percent of employers are lowering threshold or target goals, changing or adding performance metrics, isolating China business and providing for automatic adjustment for the impact of the virus or allowing for discretionary adjustments at the end of the performance period to account for COVID-19’s impact on business results.

Employers fear a serious impact if a large proportion of their workforce is ill. In the U.S., where employees going to work with a common cold happens regularly, it’s a valid concern that an employee with untested COVID-19 could come to work and spread the illness throughout the workplace. Mercer recommends employers listen to what employees are asking for, address their concerns, set firm policies to keep sick employees away from work and provide protection or prevention supplies onsite to limit the impact of the coronavirus.

Review Your Business Continuity Plan

Mercer also suggests that employers review their business continuity plan to ensure they have a plan in place to handle global outbreaks of pandemics like the coronavirus. A good business continuity plan ensures continuity in the event of a disaster, enables ongoing operations and outlines procedures and instructions to follow in the face of a disaster; whether it is a natural disaster such as an earthquake or hurricane; a fire; a cyber-attack or a medical epidemic.

Employers can minimize employee panic by keeping up to date on reports from government entities like the World Health Organization, communicating updates frequently, following government guidelines, listening to employees and providing protection or prevention supplies.

How to Help Employees Prepare for Open Enrollment 2020

by LizStevens | Oct 16, 2019 | Blog

How to help employees prepare for open enrollment 2020. Being more knowledgeable about health insurance benefits will help them enroll in the plan that’s right for them.

U.S. workers dread open enrollment almost as much as going to the DMV to renew their driver’s license, according to a survey by MetLife.

This level of apprehension may explain why employees make hasty benefits decisions. One in five employees spend only a few minutes reviewing benefits plans before making a selection. Another survey by UnitedHealthcare found nearly 40 percent of employees devote less than one hour to the open enrollment process.

It’s unfortunate employees are rushing benefits decisions, especially when employers are taking a more active role in driving down healthcare costs.

What can employers do to help employees better understand how different health insurance plans affect out-of-pocket costs for healthcare?

Terms Employees Need to Know for Open Enrollment 2020

One reason workers dislike the open enrollment process could be because they don’t understand the terms used when discussing health insurance and healthcare costs. UnitedHealthcare found that some workers struggle with health literacy and defining terms like:

Health Plan Premium – The amount of money a person pays for a health insurance plan each month. (Only 59% knew the correct meaning.)
Health Plan Deductible – The amount a person pays for health care services before insurance coverage starts. (Only 53% knew the correct meaning.)
Out-of-Pocket Maximum – The maximum amount a person must pay for covered health expenses during a plan year. (Only 33% knew the correct meaning.)
Co-Insurance – The share of costs for a covered health care service a person must pay after health insurance coverage is factored in. (Only 21% knew the correct meaning.)

Misunderstanding these terms when selecting health insurance benefits could lead to higher premiums, co-pays and out of pocket costs.

Additionally, just over half of employees check if their doctors are in-network for the health plan they select. If their doctor happens to be out-of-network on their new plan, it could lead to serious headaches over higher co-pays or finding a new doctor that is in-network.

How to Help Employees Prepare for Open Enrollment 2020

Seventy-five percent of employees told UnitedHealthcare they felt prepared for open enrollment, but there’s a disconnect somewhere since most employees struggled to define basic health insurance terms.

Clearly, there are a lot of factors that employees need to consider when selecting healthcare benefits during open enrollment 2020. Here are four ways that employers can communicate with employees about open enrollment to increase their understanding of the process and prompt them to review selections more diligently:

Build a guide, checklist or cheatsheet for employees to use when reviewing available benefits.
Hold a meeting before open enrollment to go over changes in costs and healthcare offerings.
Send out an email before open enrollment that goes over terminology and the factors employees should consider when selecting their healthcare plans.
Designate a contact for questions. If an employee has a question about open enrollment should they ask their direct supervisor? A member of the HR team? Call a representative from the insurance broker?

“Employees have the unique opportunity to leverage a growing number of benefits from their employers—benefits that are specifically tailored to their needs and the needs of their families,” said Meredith Ryan-Reid, senior vice president, Group Benefits at MetLife. “But first, they need to be armed with a better understanding of how these employer-offered benefits can play a central role in protecting them against the unexpected and helping them achieve their short- and long-term financial goals.”