Benefits design is an important activity, and therefore employees should be involved in the process, to get the best value for the benefit dollar.
Certainly for network-based benefits (group medical, dental and vision), the network of providers should be evaluated against employee demographics, to make sure there is an adequate network for employee needs.
With the high cost of benefits and of the underlying medical care, employers should make an attempt to provide the most cost-effective benefits plans, with the lowest premium that can maintain satisfactory employee cost-sharing.
Since group medical insurance is primarily a benefit to limit employee costs in the unfortunate event of a catastrophic medical claim, the employer should consider investing in ancillary benefits (e.g. dental, vision and wellness plans) that will actually save employee money for routine checkups and care.
Wellness and advocacy plans are a win-win for an employer, where the amount in invested for a well-designed plan is paid back to the employer through employee productivity. Workers who are educated and involved in benefits design and selection are more likely to use their plans more effectively, and therefore more likely to be satisfied with the benefits. This is another win-win for the employer, since it will lead to greater employee retention and productivity, two major goals of employee benefit plans.
Workers need to know the provisions of the benefit plans, and should have readily available benefits summaries and guides provided by benefits plans. Many insurance plans have invested much money to provide on-line tools for self-assessment, quality provider lookup and claims management, all of which can save employees money and help them get quality care.
The most cost-effective plans are group plans that have participation requirements (e.g. the higher percentage of employees who participate, the better the plan), so involving the employees to make the best selections, will lead to the highest participation and the most valuable plans.
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- Why Should NJ Employers Offer Employee Benefits?
- When Should A NJ Startup Business Offer Benefits?
- What Are The Basics Of NJ Employee Benefits?
- How Should Employees Be Involved In Benefits Plan Selections?
- How Are Employee Benefits Paid For?
- How Can Employee Benefit Plans Be Used Most Effectively?
- What Types Of Rules Must Be Followed?
- What Is The Process At Policy Renewal/Plan Anniversary?
- How Can A NJ Benefits Specialist Help?