Benefits 101: Considerations for Choosing the Right Plan

Welcome to SMB Matters.

I’m Wendy Hoskinson, Director of Benefits Communications for TriNet.

This podcast series takes a close look at the latest news and trends on a variety of topics related to running a successful small and medium sized business.

Today I’m going to talk about the importance of employer benefits from A to Z. We’ll start at the beginning, how you can help employees choose the plan that best fits their healthcare needs and budget. But that’s only the beginning. I’ll also talk about how you can help employees optimize their health and healthcare throughout the year. Smart consumerism of healthcare from A to Z can lead to healthier, more engaged employees, not to mention, potentially more money in everyone’s pockets.

Choosing a health plan is a complicated decision, especially if employees don’t understand basic benefits terminology such as deductible, coinsurance, copay and out-of-pocket maximums. According to Ameritas, up to 85% of employees need help understanding the benefits offered to them during enrollment. Furthermore, a Voya study shared that nearly half of workers admitted they don’t fully understand the benefits they elected. If employees don’t understand what the plan options are, then how can they possibly choose - or use these plans effectively?

Furthermore, choosing the wrong plans may have negative consequences on both their budget, and their health: For example, if employees can’t afford their out-of-pocket expenses, they’re more likely to delay or postpone the care they need, possibly leading to more expensive and less effective care options. These potentially negative health and financial implications might also translate to a negative view of their employer and the benefits package offered.

The good news is—there are several steps employers can take to help their employees make informed decisions, potentially reducing the financial risk and promoting smart healthcare consumerism throughout the plan year. Let’s review these steps from A to Z.

Step 1: Provide a simple overview of benefit plans and programs. When employees can see a holistic view of their benefit offerings, they have a better understanding of their options as well as a greater appreciation of the tangible value those benefits bring.

Step 2. Teach your employees the benefit basics. They’ll feel more confident about choosing plans that fit their needs when they understand things like how deductibles work, and what coinsurance and copays are. Knowledge empowers successful decision making.

Step 3: Provide support tools and resources. There are several options available that can help simplify the benefits enrollment process. For example, benefit decision support tools with AI integration use employee provided information such as prior healthcare utilization and demographics to show plan compatibility for available plans that may best match their needs.

Additionally, plan comparison tools help employees review plans side by side and compare options based on cost, benefit attributes and other features that may be important to them.

Offering these tools can ease plan selection and simultaneously be an educational opportunity.

Step 4: Educate, optimize, repeat. Benefits from A to Z goes beyond plan selections. Once employees have chosen their plans, help them get the most from them. Education should be a year-round conversation, creating awareness of the various programs and resources available through the benefit offerings, such as telemedicine, mental health resources, nutrition programs and many others. When employees know what their benefits include, and how to use them, they are more likely to optimize their plans. Additionally, smart healthcare consumerism, such as preventive screenings, medication adherence and taking advantage of medical carrier provided resources may help prevent and manage diseases and chronic conditions potentially resulting in lower costs for employers and employees. Healthy employees are also more likely to show up for work, perform at their best, keep costs in check--and view you, their employer, as an Employer of Choice.

In our ongoing quest to be an industry thought leader, TriNet provides our customers access to an array of resources that helps employees choose benefit plans that can optimize their health and healthcare. These include a custom Benefits Guide, robust plan comparison features as well as benefits education support.

Go beyond benefits selection and empower your employees to engage in their benefits from A to Z. It’s a win-win!

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Legal Disclaimer:

This podcast is for educational purposes only. With decades of experience supporting small and medium-size businesses, TriNet has unique insight into HR best practices for businesses. TriNet does not provide legal, tax or accounting advice. The materials in this podcast and the options and opinions expressed herein may not apply to your company or scenario, so you should consult with your own advisors on how best to proceed. Reproduction in part or in whole is not permitted without express written authorization from TriNet.