Bringing value to healthcare benefits with simplicity

Today's employers are overwhelmed with information, making everyday decisions a difficult challenge. The healthcare system is no exception. Organizations may default to a check-the-box approach to deliver a program for their people. As advisers, we have the opportunity to alleviate stress caused by information overload so employers can begin to make clear decisions about their benefit needs.

Although choice offers options to our clients, too many choices can diminish value. When employers are guessing their way through the benefit process, they can end up making choices that are less than ideal for their business. Now, with increased inflation, high premiums and medical debt as main concerns for both the employer and their employees, we need to make healthcare and benefit programs easier for our clients to understand.

Some advisers believe that keeping communications complicated creates job security for our community. In fact, the exact opposite is true. When we're thoughtful about how we construct healthcare plans for our clients they can begin to understand the reasons behind the strategy. Simplicity, leading the way to understanding, can help eliminate guessing by employers and provides employees with improved, comprehensive benefits. 

Read more: Getting employees to appreciate the millions spent on healthcare

A Trends Job Market Report released earlier this year shared that 80% of those looking for jobs believe employers need to re-evaluate the benefits they offer. The report also noted that almost 40% of full-time employees report being "dissatisfied" or "very dissatisfied" with their available benefits. The fact that many employees are unhappy with their benefits shows that somewhere along the line, benefits value is being lost. If our clients need to re-evaluate their benefits plans to better represent their people, they may not know exactly what their people need. 

Employers get very excited when we use the word "simplify." Instead of overloading them with plan data and technical terms, simplify. Create strategies that align with the company's long-term needs and deliver those strategies in a way that clients can understand. When we overcomplicate healthcare benefits, our clients may default to a less-than-optimal choice that not only affects their bottom line, but their entire workforce.

If we provide simplicity for employers and their employees, they may be quicker to accept the changes we suggest. We recently had a discussion with a client, and together we made many decisions. They weren't big decisions. We changed their wellness plan, copays and naming conventions. We started small and kept it simple. From those meetings, our client began to see the value they were getting for their dollar spent. 

There is value in simplicity.

When speaking to clients about their healthcare program, an in-depth approach may not be an effective way to present options. While getting technical is important for us, going technical with clients isn't helpful without first establishing an understanding of the strategy. Specialists and partners are great resources when a program requires options that are outside of your knowledge or expertise. This is especially true when considering rules and regulations. Compliance is extremely important.

Read more: Single-payer health insurance could be right around the corner

Once a complete understanding of the proposed policy has been reached, any pros, cons and outcomes to each option can be highlighted. If we take the time to review possible scenarios carefully and answer any questions that may arise, employers can begin to make confident choices. From there, HR teams and leaders should be involved, educated and armed with resources to help support employees. However, our job is not done there. We have the ability to assist with and promote benefit programs throughout the year, making access and understanding easier for employees as well.

When we present too many choices that are complicated in nature, our clients don't really have choices. Confusion distorts the decision making process. With so many options, how are employers to know what information is pertinent? As experts in our field, we need to make sure the information our clients receive is digestible. We need to provide the right insights and take a consultative approach to ensure everyone is making wise choices.

In a nutshell: simplify choices. 

Help employers avoid default decisions so they can provide a benefits plan that saves costs and improves the lives of their workforce. When we provide companies with a better understanding of their healthcare programs, we improve perceived value — something that ultimately generates new business for advisers.