Does your employee benefits strategy feel like Groundhogs Day?

Does your employee benefits strategy feel like Groundhog's Day?

1/31/2019

This Saturday is Groundhog’s Day, which is a popular tradition originating in the late 1800s in the United States that is celebrated on February 2. While the folklore is interesting – does spring arrive early or will winter weather persist for six more weeks – it is the 1993 movie that I think of each day this year.

You know the one -- Bill Murray plays Phil Connors, an arrogant Pittsburgh TV weatherman, and while covering the annual event in Punxsutawney, Pennsylvania, finds himself in an endless time loop…. repeating the same day again and again, until he eventually reexamines himself and his life.

As a business leader of an organization, do you often find yourself in an endless cycle like Phil Connors when it comes to employee health benefits and renewals?

The script goes like this - you get your annual 10-15% rate increase, your benefits broker spreadsheets and reports your carrier options, and then you negotiate with a selected carrier for the upcoming year. This process typically repeats itself annually, with employers and employees often spending more and more money each year.

Sound familiar? We thought so.

But what if it didn’t have to be that way? What if tomorrow you didn’t wake up in Punxsutawney? What if instead of your annual negotiation and rate increase, you took a more strategic approach to your health benefits program?

Forward-thinking advisors can help employers [and their employees]:

Analyze health care supply chain utilization to determine cost saving strategies
Purchase higher quality care and still spend 20-40% less
Reduce out of pocket expenses for members with improved benefits design
Provide health care concierge teams to direct health plan members to the highest quality care
Leverage digital communication tools to engage and support employee health

How does the story end? Employees have a benefit program they love, they use, and they love to use. And employers have happy, healthy employees.

Strategic planning for big changes should begin at least 6 months before your next renewal to effectively consult with management teams and map out strategies and goals. We’ve previously written about Six Key Activities CFOs and CHROs Should Perform Together to Optimize Employee Benefit Programs to help employers best position themselves for success when it comes to employee benefits planning and programming. It’s a great place to get started.

Don’t get trapped a never-ending loop of predictable benefits that are just “good enough” for now. Rethink and take charge of your health plan strategy. And don’t invite Ned Ryerson - bing!

Author:
G. Scot Grooms
President & CEO

Employee Benefit Trends