It’s Open Enrollment season and that sound you’re hearing is not a cheery holiday carol, but the collective shriek of millions who are reviewing their medical benefit costs for 2016.
According to the Healthcare Cost Institute, a non-partisan non-profit entity, health care spending among those with employer-sponsored insurance increased 10 % from 2011-2014. The Milliman Medical Index (MMI) calculates the annual cost of healthcare for a typical family of four with employer-provided PPO insurance coverage. According to Milliman, this year’s Index is $24,671, an increase of 6.3% over 2014. Employers still pay the majority, but as cost sharing for medical benefits continues to climb, employees may be paying over 40% of the tab.
For internal communicators, there is no way to spin this. Businesses must manage their benefits costs, and since medical service is becoming more expensive, cost sharing is the prevailing technique to manage the company budget. But there is a way to make it less painful for employees and the business. There are 11 months leading up to Open Enrollment. Each month is an opportunity to inform and educate about the value of your company’s benefit plan. The good news is you don’t have to spend a lot of money to do it.
Start with a survey—Let’s get really basic: Do your employees know what benefits you offer? Design a simple survey (easy to develop on Google or through providers like Survey Monkey). Determine the awareness of all your benefits. Include Employee Assistance Programs, discounted purchase programs and retirement plans. Anything and everything. You’ll have a good foundation for the second step of this plan: education.
Develop a 12-month communication plan—Many companies cover all their benefits communications once a year to meet compliance requirements. Think about this from the employee’s perspective. No information for 11 months, then lots of information when decisions must be made immediately. It can be overwhelming. Use multiple channels to promote your benefits programs: news items, Lunch and Learns, posters. Consider highlighting one personal employee story every month. A consistent flow of communications about your benefits will increase understanding and engagement.
Be transparent—No one likes higher fees. However, if employees understand what’s driving cost increases, when the prices go up they’ll be more prepared. The time to share this information is mid-year, so the foundation is prepared for Open Enrollment. Telling that story during Open Enrollment is ineffective because your employees will be focused on their out of pocket costs. Get out in front of the issue.
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