Maximize Your Benefits Program SHRM


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Maximize Your Benefits Program SHRM

  1. 1. Maximize Your Benefits Program with Voluntary Benefits Houston Hamilton Agency Development Manager
  2. 2. Overview Why benefits are important Challenges facing employees Challenges facing employers Possible solutions
  3. 3. Why Benefits Are Important
  4. 4. Employers’ Goals for Their Benefits Programs “Voluntary Benefits – The Employer Viewpoint,” Benefits Selling, Aug. 2006.
  5. 5. Challenges Facing Employees
  6. 6. Workers Struggle With Costs of Health Care 46 million uninsured Americans 25 million underinsured Americans 72 million have high medical debt Source: “Losing Ground: How the Loss of Adequate Health Insurance Is Burdening Working Families,” Commonwealth Fund Biennial Health Insurance Survey, Aug., 2008, and “Income, Poverty and Health Insurance Coverage in The United States: 2007, U.S. Census Bureau, Aug., 2008.
  7. 7. Medical Debt Contributes to Personal Bankruptcy “Unless you're Bill Gates, you're just one serious illness away from bankruptcy.” “Most of the medically bankrupt were average Americans who happened to get sick.” Dr. David Himmelstein Harvard Medical School Professor & Medical Bankruptcy Study Leader Source: Dr. David Himmelstein, Associate Professor of Medicine, Harvard Medical School, and leader of study “Illness and injury as Contributors to Bankruptcy,” as published in Health Affairs, February, 2005.
  8. 8. Challenges Facing Employers
  9. 9. Employers’ Number One Problem: Health Care Costs “How do I provide an attractive employee benefits program and manage costs?”
  10. 10. Employers’ Response to Rising Benefits Costs What types of cost reduction efforts have been undertaken or are being considered by year end? Increasing employee health care 45% cost-sharing (e.g., premiums) Reducing or eliminating the subsidy 32% for other employee benefits (e.g., vision, dental) Reducing medical benefits 25% Source: Cost Reduction & Engagement Survey, Hewitt Associates, LLC, 2009.
  11. 11. Premium Costs Continue to Rise Average Health Insurance Premiums and Worker Contributions for Family Coverage, 1999-2008 $12,680 119% Increase $5,791 117% Increase Employer Contribution Worker Contribution Note: The average worker contribution and the average employer contribution do not add to the average total premium due to rounding. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2008.
  12. 12. Possible Solutions
  13. 13. Traditional Solutions Cost shifting Eliminating benefits Shifting decision-making to employees Employers need a more comprehensive solution.
  14. 14. A Comprehensive Solution • Major Medical • Supplemental • Dental • LTD Communication Health • STD • Group Life • Life • Retirement Employee Core Benefits Employee Voluntary Benefits To help fill gaps and provide personal benefit solutions . . .
  15. 15. What to Look for in a Voluntary Benefits Provider Superior Innovative Service Products Innovative products Enrollment Benefits Flexibility Communication Benefits communication capabilities Enrollment flexibility Superior service
  16. 16. Innovative Voluntary Products Superior Innovative Service Products Individually owned Enrollment Benefits Multiple benefits Flexibility Communication options Portable Competitively priced Family coverage available
  17. 17. Benefits Communications — A Gap Exists Superior Innovative 3% think their employees Service Products know nothing at all about their benefits Enrollment Benefits Flexibility Communication Only 24% believe their employees actually do understand their benefits More than 90% of employers think it’s important for employees to understand and appreciate their benefits Source: Colonial Life SHRM National Conference Survey, June, 2008
  18. 18. Benefits Communication To Help Employees Understand and Value Their Benefits Superior Innovative Service Products Salary illustrations Benefits statements Enrollment Flexibility Benefits Communication Customizable communication materials Core and voluntary benefits communication Individual help understanding options and making choices
  19. 19. Enrollment Flexibility Options that meet employers’ and employees’ needs Superior Innovative Call centers Service Products National enrollment Enrollment Benefits team Flexibility Communication Online and offline enrollments Group meetings and one-to-one meetings Self-enrollments and agent-assisted enrollments Consistent enrollments among dispersed locations Flexible scheduling for shift and non-traditional workers
  20. 20. Superior Service Customer persistency Superior Innovative Service Products Speed of paying claims Enrollment Benefits Sharing of service results Flexibility Communication Strong back-office support Independent customer reviews Experience working with individuals, not just groups
  21. 21. Maximize Your Benefits Program With Voluntary Benefits Superior Innovative Service Products Innovative products Enrollment Benefits Benefits communication Flexibility Communication capabilities Enrollment flexibility Superior service
  22. 22. For more information: Houston Hamilton Agency Development Manager 713-870-7791