Bettering Benefits Communication

The most helpful tip an employer can receive regarding benefit communication with their employees is this: Tell it like it is. A study conducted by Medco Health Solutions found that 78% of employees don’t believe their employer’s plan has limited funds. With the misconception that deep-pocketed insurance companies cover the bill for benefits becoming common in the workplace, employers must communicate the fact that the business is still shouldering the greatest portion of the costs and thus needs cooperation to alleviate major financial risks to all.

A second survey conducted by Towers Perrin found that only 15% of employees say it’s appropriate for their employers to reduce benefits and only 28% of employees said they understand paying for more coverage is necessary. These are the expected knee-jerk reactions of an employee who doesn’t want to pay more for benefits than they already are. When self funding or new consumer driven plans are in place, it is easier for an employer to demonstrate that a majority of dollars paid out of the plan for medical claims are coming from the company and participating employees. Illustrations will help employees understand where plan dollars are really going.

And being that only one-third of employees surveyed believe health plan costs affect their employer’s business success, this open dialogue must stress that everyone’s livelihood is at stake. A good way to start is by educating everyone on how to best control expenses for non-emergency health care services.

Once all parties accept the realities of cost increases, measures can be taken to create a health-conscious workforce that is proactive about their own health care decisions.