been experiencing higher than normal
healthy, low-risk employees that they leave
utilization. Paid claims caused the renewal
the plan to pursue alternative options, such
to be substantial, and the cost became too
as a spouse’s plan. As a result, the employer’s
large for your organization to absorb. As a
pool of healthy employees shrinks—these
result, to achieve budget, it was necessary to
are the people who are contributing to a
dilute the plan designs by increasing copays,
positive overall group experience and lower
deductibles and so on. Sound familiar?
premiums. Not to mention the potential
At times, these are valid courses of action, but what could be the unintended consequences? It’s possible that a change in plan design or plan offering becomes so unattractive to Tip: Understand the short- and long-term impact when you make decisions about your benefits plans.
impact on the company’s goal to attract and retain good employees.
Partnering To Find The Right Solutions Risky business in employee benefits means complex problems with equally complex solutions, and no two solutions are the same. That’s why it’s important to partner with experts, so you can be guided through the maze of your employee benefits risk profile, and be informed decision makers. Whether it’s implementing new plan offerings (such as an additional medical plan), making plan design changes, or working through M&As or waiver populations, knowing the true risk of each decision in your benefits plan and the price impact ensures you don’t get caught unprepared. In other words, assess all risk factors for the best possible outcome.
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