Six Steps for Building an Effective Employee Benefits Plan

Employee Benefit Programs Professionals in Office Smiling & Working on Laptop

The majority of companies renew their employee benefits plan on the 1st of January. However, you must start your decision-making process well before then. The choices you make now, can make you pay later – in more ways than one.

Many companies working with a broker such as Clark & Lavey have been engaged with their employee benefits advisor throughout the year. They may review claims experience (available to large groups) and identify actionable items. So, our clients generally have an expectation of where they stand, long before renewal. Conversely, if you don’t meet with your broker regularly, you may have no clue what to expect when that renewal comes in.

What to Consider About Your Employee Benefits Plan

Whether your company is in a fully-funded, self-insured, or a group health captive plan, decisions will have to be made well before you plan is finalized. Here are some considerations to think about before you sign on the dotted line:

Consider All Funding Options

How you fund your employee benefits plan matters. Looking at all funding options can show you the difference in premium costs based on your funding method. Fully-insured plans give you the least amount of control, and for small groups – doesn’t factor in the health of your employee population. It provides the least opportunity to control costs, but does provide the assurance that no matter the number of claims, you will pay the same amount, which typically makes it the most costly.  Self-funding provides greater control in managing your health plan; you pay stop loss against high claims, and  you manage the risk. Plus, you will receive premiums back if they are not spent. A health captive gives you control, and mitigates your risk. You are part of a bigger pool, and whatever premium costs you don’t spend, are also returned to you.

Review a Pharmacy Benefit Management Program

Implementing a pharmacy benefit management program for large groups, regardless of how they are funded, can be a great savings tool. With these programs, employers can secure lower costs of pharmaceuticals for chronic diseases and more serious illness prescriptions that may be frequently prescribed to members.

Explore New Options

A good benefits advisor will review the options that you may not have previously implemented prior to sending out RFPs. Be on the lookout for this.

Don’t Underestimate the Importance of Your Employee Wellness Program

Implementation of a great wellness program with measurable results can lower your medical loss ratio—ultimately lowering your premium rates. And, if your organization is too small for a formal wellness plan, consider educational and incentive initiatives that can improve the overall health and well-being of your employees.

Consider Cost-Effective Telemedicine Options

If your company doesn’t already have telemedicine as part of the plan, consider it. This cost-effective and convenient interaction with providers allows plan members to reach their healthcare providers online. Plan members can receive care for their non-serious health issues this way for the cost of a co-pay. Plus, they would not have to leave home or their office.

Offer Voluntary Products

Voluntary products are often very appealing to employees, and since these are purchased by the employee with very little administrative effort, they are a win-win for everyone. With today’s tight labor market, review trends in benefits to determine if your organization needs to enhance your benefit offerings to remain competitive.

Set Up a Great Employee Benefits Plan

Re-assess your employee benefits plan annually. When doing so, consider Clark & Lavey a resource for your organization. We work with organizations of all sizes, and all industries, as well as non-profit and not-for-profit organizations. Whether you’re in a fully-funded, self-insured, or a group health captive plan, we can help you! Give us a call at 603.883.3773 or contact us online.