Reconsider the Norms of Employee Healthcare Benefits

You owe it to yourself and to your employees.

As with many things in life, there are easy paths, and paths of the unknown.  Have you ever asked yourself if these perceived uncharted paths may lead to a better suited result for your company’s benefit strategy?  It is funny how Robert Frost captured it so well in 1915 with “The Road Not Taken” isn’t it?   

Sticking with the Robert Frost analogy, consider the fully insured healthcare benefits are the road which is clear cut and so simple to navigate.  For groups who have unique needs within their companies, this may even be the best path.  But, for those companies who are willing to trek further into plan design, there is a whole new world down the unknown path.  As workforces have changed, as desires have changed, and as prices have changed, the need to look at alternatives benefit strategies is greater than ever for businesses today.  As a business owner, or influencer within an organization, be willing to consider these uncharted paths as your employees may greatly appreciate it. 

Benefit Options Reconsidered:

“Customize your healthcare benefits to the employee population rather than the cultural norm.” 

I was given this sage advice many years ago by a gentleman that invested in me and influenced how I looked at healthcare benefits.  I share this with you today, as a reminder to be willing to look at this proverbial uncharted path.

This message was insurance insider speak for "if you build it, they will come" if you meet the buyer’s needs.  When I was given this advice, I was sitting in the doors of a large insurance organization, functioning in product development at the time.  While this was well over a decade ago, I still remember building these HDHP Plans, and other offerings that were so different than anything else in the marketplace. 

While these are fond memories, I challenge you to ask yourself - what does your employee population truly want when it comes to their healthcare benefits?  You may find that your expectation of benefits is vastly different from theirs.  Take the gig economy workers, the Gen Z workers and many others that have all been given titles due to their previously different thinking.  These employees are seeking flexibility, even ownership, over their lives and their health coverage.   The desire for rich low-deductible plans with high monthly fees is not remotely interesting, nor are they valued no matter the employer’s best intentions.  For these types of employees, what would happen if you offered lower-premium, flexible benefits where they are in control? 

Years ago, the idea of shopping for a medical service and price shopping was truly a foreign concept.  Yet, I can name 10 companies today that offer these types of services in their plan designs and cost 1/3 of traditional coverage. 

What would happen if you worked with your benefits’ consultant to design a plan with 24/7 365 access to the virtual care physicians that these newer aged employees desire?  How about a voluntary product that pays them if they seek medical care and allows them to choose the provider and location of their choice?  I know many would challenge that this feels overly complex, cumbersome or even overwhelming.  But ask yourself this - is it difficult, or is it simply the Road Less Traveled? 

 Benefit Strategy for The Younger Workforce

A younger workforce presents different product fit needs, as the thought of paying significant portions of their paychecks for benefits may be seen as a waste.  If you need a proof point for this, look at the growth of the consumer driven health plan movement and ask a few of your employees why they prefer one of these offerings.  For those of you seeking this holistic model, know that it is completely acceptable too.

In these instances, though, you may want to consider options such as ICHRAs, Self-Funded Plans, Captives or even Level Funded Plans.  Your benefits consultant should be very familiar with these and more options in the marketplace today.  You can also refer to my previous articles on the benefits and risks of each category.

There are hundreds of articles touting each option and how it positively impacts organizations. My purpose of mentioning each of these is to simply present options that you as a business owner may want to consider.

Chart Your Own Benefit Path

As an employer, we are given most of our employees' days—valuable time they could be spending with their families, friends, or others. While old traditions expected people to work in a certain way, I think we can all agree that the gig economy has shown us that 'work' holds a very different meaning today than it did decades ago.

Only you can identify and address the unique needs of your organization, but I challenge you to think outside the box and consider the Road Less Traveled.  It may require a little more research in the beginning but can lead to a benefits strategy designed to meet the needs of your unique team and their desires. 

With decades of experience in the healthcare benefits landscape, Trey Hinson outlines the ongoing fusion of technology and healthcare, providing a wealth of practical solutions for today’s business leaders. While he will not provide actual plan advice, Trey will offer insights that can help your employees navigate today’s complex terrain. 

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