As employees are gearing up for open enrollment, employers are contemplating their benefit offerings for the coming year. Most companies desire to lower their rising healthcare costs and improve their employees’ overall health. In doing so, there are various options companies can utilize. According to Watson Wyatt Worldwide, a global consulting firm, there are many new trends in benefits for 2009 that aim to lessen the financial burden on employers.
- Rewards For Good Health
- Offer financial incentives to employees who have healthy habits and lifestyles or those who participate in wellness programs at work. Penalize workers with higher premiums for engaging in unhealthy activities such as smoking.
- Preventative Care Benefits
- Offer full coverage for employees who seek preventative medical care and preventative drugs without a deductible, including vaccinations, exams and screenings for diseases such as breast, colon and cervical cancer, and blood pressure and cholesterol.
- Onsite Health Centers
- Offer onsite health centers and staff health coaches to provide advice on personal health needs.
- Catering to Individualized Needs
- Offer voluntary benefit options that meet personal and family needs such as homeowners, automobile and group life insurance. Also, offer discounts on vision, dental, massage therapy, chiropractic care, health club memberships and weight-control programs.
- Communication Tools
- Provide online tools for employees on health education and estimation on their healthcare expenses.
- Healthcare Savings Accounts (HSAs)
- Offer HSAs as a way to promote consumerism. Reduce plan options.
- Analyze Dependent Coverage
- Pay close attention to the spouses and dependents that employees enroll for benefits. Some companies require employees to pay higher premiums if their spouse can obtain health coverage through his/her employer. Conduct an eligibly audit to prove that dependents are considered legal dependents.
Take time this year to assure that your company is saving as much as you can be. Implement these new health options to reduce costs and have a healthier workforce.
The IRS has released the limits for health savings accounts and high-deductible health plans. Those limits as compared to 2008 are shown below.
HDHP Minimum Deductible Amount |
2008 |
2009 |
Individual |
$1,100 |
$1,150 |
Family |
$2,200 |
$2300 |
HDHP Maximum Out-of-Pocket |
2008 |
2009 |
Individual |
$5,600 |
$5,800 |
Family |
$11,200 |
$11,600 |
HSA Statutory Contribution Amount |
2008 |
2009 |
Individual |
$2,900 |
$3,000 |
Family |
$5,800 |
$5,950 |
2008 |
2009 |
|
Catch-Up Contributions (age 55 and older) |
$900 |
$1000 |
Open enrollment is a period of time each year when employers permit new employees to enroll in a health plan and allow current employees to make changes to their existing medical coverage. Ten methods that employers can use to improve their open enrollment communication strategies are:
1. Communicate frequently with employees regarding their health coverage options, but avoid overwhelming employees with information. Give them ample time to absorb new information, ask questions, and express concerns.
2. Use simple terms to explain any changes.
3. Thoroughly explain the goals and rationale of healthcare benefits to managers and business leaders so that they can then effectively explain health plans to employees.
4. Be ready to answer questions and face challenges from management and employees regarding changes.
5. Be honest and direct when discussing health benefits, especially if employees are facing cost increases for their coverage.
6. Discuss the “5 C’s” of enrollment with employees: Cost, coverage information, changes to plans, comparisons to last year’s plans and options, and current options.
7. Provide information to employees about the healthcare providers that will be available to them in new or revised plan options.
8. Provide testimonials from other employees about their experiences with changes in healthcare coverage.
9. Use a variety of methods to communicate with employees; for example, use the Web, printed materials, and face-to-face discussions.
10. Survey your employee population to determine their priorities – product importance, preferred method of communication, etc. By doing so, employers can identify exactly what their employees want and workers feel as though their needs have been heard by decision-makers.