Category Archives: Employee Benefits

How to Encourage Employee Healthcare Comparison Shopping

It’s a tough time for a lot of people out there: inflation is driving up the cost of everything from food to gas and your employees are feeling the sting. But even if this is the case, most Americans don’t realize they can comparison shop to make sure they’re getting the best price for their healthcare services. A survey from AKASA, a healthcare artificial intelligence company, revealed that nearly two-thirds (64%) of Americans have never tried to find the price of a specific healthcare service.

Paying more for healthcare doesn’t necessarily mean higher quality service or better outcomes. This is why shopping around for healthcare is so important, it can result in cost savings for both employees and employers. Today we’re going to talk about strategies employers can use to encourage employees to shop for high-value healthcare, which can help lower your organization’s health care costs.

1. Educate Employees

One of the first steps in helping encourage employees to shop around for healthcare is education. Employers have a unique opportunity to provide data and information to help employees understand the savings potential of healthcare comparison shopping.

Specifically, employers can help employees understand price variation and explain how to best shop around. According to Healthcare Bluebook data, U.S. healthcare prices vary an average of 650% for the same procedure. That’s a huge variance.

Additionally, the federal government has started increasing price transparency for health care services, which can help with comparison shopping. For example, new rules require hospitals to post pricing online for various services and procedures. Starting next year, health insurers must share their negotiated prices with the public. So, as health care pricing gets more transparent, employers can really help employees better understand these price lists.

2. Provide Transparency Tools

Employers can direct employees to user-friendly tools that break down pricing. Employers should connect with their benefits partners to understand what resources and transparency tools are already available for their employees. Some of these you’re already paying for but aren’t utilizing. There are also state-sponsored resources that offer tools to help consumers compare hospitals, health care facilities, and other providers in their state.

It’s essential to explain that if high healthcare costs are left unchecked, employees may experience reduced benefits or increased employee cost sharing. Of course, savings can help the organization, but it’s important to highlight how employees individually benefit.

3. Incentivize Behaviors

Another way to help make healthcare shopping top of mind for employees is to create rewards for certain consumer behaviors. Employers can create incentives for employees that use employer-provided price transparency tools to comparison shop for services and procedures.

Some employers may offer cash incentives, while others offer wellness program points. For example, wellness points could be redeemed for health savings account contributions or reduced cost sharing. As with any organizational initiative, employers should consider making it fun. Gamification (e.g., point scoring and social connection) can help facilitate friendly competition and increase employee engagement and motivation.

Conclusion

Healthcare costs are undeniably going to continue rising. Employers will need to take proactive approaches to reduce these costs. They have an opportunity to make employees feel empowered to take charge of their health and actively comparison shop for quality healthcare at the best price. A mix of education, provision of tools and incentivization may be the magic combination to help change employees’ health care shopping behaviors.

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If you’re interested in learning more about this, give us a call. We’re here to help.

2023 is Around the Corner: What’s your Benefits Strategy?

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Post pandemic, we know that employers are struggling to attract and retain talent. According to Zywave’s 2022 Attraction and Retention Survey, more than 75% of employers consider attraction and retention to be among their top five business challenges. This change in the labor market means the old ways of delivering Employee Benefits are no longer enough to increase retention. Employees now expect fresh healthcare plans that provide value and offer perks. Things that used to be considered “buy-ups” now must be included as core offerings.

So, what is your Benefits strategy? Here are our top tips for building a strong Benefits strategy going into 2023:

1. Be proactive.

Make sure your insurance broker is helping you dissect all your options and choices. Be open to options like changing carriers, it can present a significant cost-saving opportunity. Also, many employees will be happy to adjust if it means they receive better benefits at lower costs.

2. Build an attractive, well-rounded Benefits package.

It’s no longer enough to build a plan that only includes various medical plans. Employees are now expecting Dental, Vision, AFLAC, pre-tax plans, virtual care, as well as Cafeteria Plans for payment of medical expenses and dependent care. The good news is these are nominal expense Benefits, which can round out and add great value to any package. They can be implemented, no matter how big or small your company is. Of course, retirement plans are important as are strategies around adding PTO and flex time.

3. Communicate! Educate! Communicate!

Employees that don’t feel they’re getting the best possible benefits might seek out other job opportunities. You can have the best possible Benefit offerings, but if your employees don’t understand the value of the plans available, the most attractive plan could be rendered useless. Speak up and take the time to educate your employees. Employers have a unique opportunity to provide data and information to help employees better understand the value of your company’s offerings. Use an internal newsletter to communicate and call out the amazing benefits that are available to them.

4. Don’t leave out well-being perks.

As many workers reconsider their jobs and lives, they may also look to take better care of themselves physically and mentally. Although many organizations have expanded their employee assistance programs, mental wellness goes beyond access to care. Employers should consider how employees are treated in the workplace and ways to help reduce burnout. Some employers are offering mental health days and flexible working options to help employees take control of their workday and be most productive when they’re able.

5. Include work flexibility.

Hybrid work isn’t going anywhere any time soon. After 2 years in a COVID work environment, 50% of US employees say not including hybrid work is a dealbreaker when it comes to staying with a firm or joining a new company. Most employers recognize this because 78% already provide the option to work from home and 66% offer flexible work schedules, which include options like four-day work weeks.

6. Listen to feedback.

Ask your employees what they want and what they’d like to see. You might surprised to hear what their needs are and how simple those requests can be to fulfill.

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These benefits all must be considered as you compete for talent in a environment where there are fewer choices, and most great employees are wrapped up. Be sure you package your programs and communicate them throughout the course of 2023

6 Tips for a Pain-Free Open Enrollment

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Is there such a thing as a pain-free Open Enrollment? We think so.

Many employers are under the impression that they have their Open Enrollment process down, but studies show that about 41% of employees feel the Open Enrollment process at their company is extremely confusing. Benefit renewal happens to occur during the busiest time of the year: the holidays. This means employers are taking time off to be with their families, have lengthy vacations planned, and year-end deadlines might be overwhelming them. In short, you don’t have your employees’ full attention and that can make a tricky process even more daunting.

Having a plan for a successful benefits Open Enrollment requires both planning and the proper tools. Here are our top tips to guarantee a pain-free Open Enrollment:

1. Have a clear plan.

Work closely with your insurance advisor to review options and plans and decide what you are going to do for the next calendar year.

2. Clarify employee contributions.

Review and revise any contribution formulas so employees know what their share of the costs are.

3. Review ancillary benefits.

Make sure you have assembled and reviewed all ancillary benefits that you can add to your plan. Plans like AFLAC, Dental, cafeteria, or voluntary insurance programs can really make your plan options vibrant.

4. Utilize technology.

Be sure you are using technology to communicate your offerings. If you are still using paper, please talk to us.)

5. Communicate offerings clearly.

Host a Zoom with your team so you can share the benefits and value propositions you are offering. Employee Benefits represent the second or third largest line item that companies spend. It would be foolish not to take advantage of sharing how great your company’s offerings are.

6. Make sure Payroll is squared away.

Be sure to work closely with your Payroll team to indicate any contributions and review your plans monthly as contributions for dependents can age up during the year.

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If CorpStrat isn’t your broker, please be sure to reach out to us and see how we can help you maximize the value of your offerings. Contact us at marketing@corpstrat.com.

Inflation’s Impact on 2023 Open Enrollment

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Many employees are currently feeling financially strained because of the impacts of inflation. The cost of everything has gone up in their lives — from the price of a chicken breast to a gallon of gas to healthcare. As Open Enrollment draws near and employees are poised to make their annual selections, we’re starting to see the impact inflation will have on the choices employees make in regards to their benefits.

Employees are feeling the squeeze.

According to The Hartford’s Future of Benefits Pulse Survey, 40% of U.S. workers reported that they will cut back on the Benefits they select during 2023’s Open Enrollment because of inflation. People are really feeling the squeeze on their finances — a lack of pay increases is made even worse by inflation — and as a result, they may make some tough choices to scale back when it comes to their Benefits selections. Without relief in the form of salary increases or help in increased employer contributions, many workers are expected to cut back on their benefits.

The perfect storm.

As an employer, the impact of inflation on their employees’ finances may make Open Enrollment more challenging than usual. Inflation has placed Employee Benefits at the forefront of many employers’ attraction and retention strategies. Employers have worked hard to put together creative offerings that are appealing. However, the combination of employers trying to ramp up Benefit offerings because they’re not able to offer pay increases that keep pace with inflation and employees not having as much spending power for said Benefits is creating the perfect storm.

What can employers do?

It’s important that going into Open Enrollment, employers take steps to help their employees better understand their Benefits options so they can make more informed decisions. This can help employees better protect themselves and their families in the upcoming year. Employers can assist employees this open enrollment season by doing the following:

Use multiple communication channels.
Employ clear language that features personalized messaging. Don’t just throw bullet points at them and expect them to absorb everything. Demonstrate how the insurance products relate to their lifestyle, financial security, and overall wellness.
Highlight the services that come with coverage. Employees often genuinely want to know that they’re choosing the plan that will benefit them the most. Sometimes, even when they choose the right plan, they don’t know how to optimize it. Communicate how they’re actually being covered and educate them on how they can best optimize these benefits.
Help employees look into the future. Finances may be tough right now and there are certain Benefits that they don’t absolutely need in the moment. Employers can help clearly communicate that cutting back on Benefits can actually place them in more financial harm.
Use creative storytelling. A lot of Benefits details can go over the majority of peoples’ heads. Create clear examples of what these Benefits might actually look like in real world situations that are relatable and understandable.
Listen to your employees year round. If your employees have specific feedback, take the time to listen. Try and understand what their pain points are so you can support them and retain your best team members.

Why clear communication matters.

Employers have the opportunity to simplify and personalize their open enrollment this year. This will help employees determine how best to allocate their potentially limited resources strained by inflation.

Let’s take the Health FSA Limit Increase for 2023 as an example. On Oct. 18, 2022, the IRS announced various inflation-adjusted tax limits for 2023, including the limit on employees’ salary reduction contributions to health flexible spending accounts (FSAs) offered under cafeteria plans. Many employees may not fully understand what this will mean for them. Increasing the FSA limit by 7% is meant to alleviate some financial concerns. In short: this increase can be helpful to workers. But without clear communication, many employees may overlook the details of this Benefit entirely.

By communicating effectively and providing employees with Benefits information through multiple communication channels, employers can help them optimize their resources and make the best benefits selections for themselves and their families during this period of financial difficulty.

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If you need help with your Open Enrollment, let’s talk. Email us at marketing@corpstrat.com

Round out your Benefits by bringing in HR & Payroll. Here’s why.

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Open Enrollment is just around the corner and it seems like every company is trying to get their hands in your pocket. Whether it’s Payroll companies, software companies, retirement companies, plan vendors, or companies like ADP and Paychex, everyone has a “better solution” that they want to sell you. Upon closer examination, these “better solutions” all lack a piece that is generally critical to your business.

What if there was one place where you could manage it all: your “people” business processes, Employee Benefits, and Human Resources?

That’s where CorpStrat comes in. We can help you streamline your Employee Benefits, Human Resources, and Payroll to one location to make your life easier. Streamlining is an extremely effective tool that we believe will help simplify your life.

Here are some benefits of bringing your HR and Payroll into your Employee Benefits:

1. Personalized support.

No more wasting an entire day calling multiple companies and STILL not getting the answer you need. By streamlining your HR and Payroll into your Benefits, you call one number and reach someone who knows and cares about your business. Also we have a variety of experts on our team, from insurance to Human Resources, to Employee Benefits.

2. A comprehensive approach to your Benefits.

No more expensive piecemeal solutions that all don’t do what you actually need. We’ll help manage all the complexity and ensure compliance so you don’t have to stress.

3. Benchmarking gives you complete confidence.

Your CorpStrat advisor is working with hundreds of other employers so they know exactly what’s happening in the marketplace. You get real-time benchmarking, not last years’ assessment, so you know you’re being presented with the best options.

4. Cutting edge products.

We are in the trenches with carriers and underwriters daily. This means we’re constantly gaining insights into the best ways to use and design plans, which helps us deliver the best, custom plan for you and your team.

5. Coordinated approach to growing your business.

At CorpStrat, we’re not just passive participants. We strive to be a part of your advisory team and seek to collaborate with your professional advisory team, especially when there are tax or legal aspects to address.

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If you don’t currently work with us on Benefits or Payroll and you are still dangerously using Google to find HR answers, reach out to us. What we are offering could potentially help save you money, time, and make your business more effective. We take pride in being hands-on, non-call-center partners that are committed to helping employers manage their most important assets: their people.

Email us at marketing@corpstrat.com today.