Should employers educate their employees about health care?
Absolutely. Employers have to do more than adopt consumer-directed health care plans and increase employee contributions. Implementing upfront deductibles and plan design changes is not enough. Education and communication are key to changing the employee approach to health care and what is often an ‘entitlement’ mentality.
Employees need to be encouraged to take expenses into consideration before electing medical procedures. If they haven’t done so already, employers should begin to take the following steps toward education: provide online tools that enable employees to estimate health care expenses and encourage them to ‘comparison shop’ among facilities and providers; be upfront with employees and tell them how much you spend on health care benefits — this information is always eye-opening for employees; reinforce the use of generic versus brand name drugs and the fact that doing so can save both of you money; remind employees to take advantage of nurse hot lines and/or ‘mini-clinics’ that are able to diagnose and treat rather than going to the emergency room for non-emergency situations. All of these types of reminders should be shared on a regular, ongoing basis.
How does workplace wellness tie into this?
Workplace wellness initiatives are one of the most effective cost-containment strategies. The healthier the employees, the more favorable the health care utilization and plan usage. Reward employees for good health behaviors by offering financial incentives to those who participate in workplace wellness programs and take advantage of preventive benefits.
Some employers structure employee premium contributions based on whether or not employees participate in wellness programs (those who do not have to pay a higher contribution). On-site screenings and ‘wellness fairs’ enable some preventive benefits to be brought to the workplace, making it easy for employees to participate. Health goals can also be achieved with friendly interoffice campaigns geared toward weight loss, exercising and healthy eating. Motivate your employees to take action and everyone will reap rewards.
How do voluntary worksite benefits work?
Voluntary worksite benefits are another effective cost-containment approach that enable employees to pick and choose benefits based on personal and family needs. Popular worksite voluntary benefits include accident coverage, cancer insurance, life and disability benefits, automobile and homeowners insurance, and long-term care. The employee, most often through payroll deduction, pays for the voluntary benefits. Because the employer ‘sponsors’ the plans and allows them to be offered at the workplace, employees reap the advantages of ‘group’ discounts, reduced or limited underwriting, and discounted premiums.
Work with an adviser and take time to ensure that you are saving money wherever and whenever you can. Being creative and implementing strategic initiatives can help you reduce costs and improve the health of your work force.
Amy Broadbent is the vice president of JRG Advisors, the management company for ChamberChoice. Reach her at (412) 456-7250 or [email protected].
