Revolutionizing Health Benefits: A Strategic Approach To Open Enrollment 2024
Prioritizing modern and valuable health benefits
Posted on 09-26-2023, Read Time: 7 Min
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As we gear up for 2024 and turn the corner on another health plan year, it’s time once again for employers to weigh one of the biggest investments they face in a given year: health benefits.
Amy Spartz is a human resource leader with more than 20 years of executive experience and is currently the Chief People Officer at Gravie, an employer health benefits company. In the Q&A below, Amy reflects on key issues that we face in the current market with insights for employers as we head into open enrollment season.
What issues are on the minds of both employees and employers these days?
We can all agree that the past few years have been a whirlwind – navigating the pandemic and global health crisis, an economic downturn, and the rise of hybrid and remote working left employers clamoring for stability in staffing and laser-focused on making smart investments.Employees have also sought stability amidst the uncertainty – making benefits, particularly those related to health and wellness, front and center when it comes to taking or leaving a job.
Several research studies have shown that health benefits are more important to people now than ever:
According to Pew Research, one of the top reasons roughly half (43%) of U.S. workers quit their job in 2021 was due to “not having good benefits such as health insurance and paid time off.”
A 2023 study by Forbes Advisor stated that 67% of employees believe employer-covered health care is the most important benefit.
Despite its importance, health insurance has had painfully low consumer satisfaction ratings for decades, especially as costs continue to rise and consumer experiences remain fragmented and challenging on traditional health plans. According to a recent Gallup poll, 38% of Americans say they delayed medical treatment due to cost – the highest percent in the survey’s 22-year trend report.
These insights set the stage for how important designing and choosing the right benefits are in this current climate.
In light of these issues, what are some tips for employers in selecting health benefits plans?
Across the industry, we typically see that 90% of employers’ healthcare expenditures end up benefiting less than 10% of all employees. This is because many health insurance plans are designed only as safety nets for the very sick rather than as a true benefit for all employees at any point on their wellness journey. This is where it’s helpful for employers to distinguish between solutions that offer “insurance” for some versus a true benefit for all throughout the year.Employees want health benefit plans that will cover their individual and family’s unique health needs without breaking the bank. The following are characteristics of health plans that make both employees and employers feel like their benefits are valuable and give them protection:
1. A plan with a simple and straightforward design – Too many members of employer-sponsored health plans walk into their doctor’s appointments unsure of how much it will cost them. We’ve simplified that process for our own employees by offering our Gravie Comfort® plan that provides 100% coverage on most common healthcare services from day one, with zero deductible or copays. The benefits are easy to understand and straightforward to use, without all the complicated jargon and fine print.
2. A plan designed to be used often – Another hallmark of value is something that is used frequently. For example, if you have a gym membership and you rarely go, that membership isn’t very valuable. However, if you’re there every day taking advantage of the amenities, you feel like you’re getting your money’s worth and want to hold on to it.
Unfortunately, the traditional model of health insurance has deterred utilization and is not empowering individuals to pursue preventive care. At Gravie, we’re helping turn the tide for health benefits – recognizing that incentivizing people to use the health system in a proactive and responsible way is best not only for a member’s health but also for the pocketbooks of everyone involved.
3. A plan with more coverage of the services that keep members healthy – While straightforward plan designs can make it easier to navigate healthcare, coverage is what counts most. You usually don’t have to go far to hear people grumble about medical services that aren’t covered. Plans that provide coverage on everything from specialist visits to generic prescriptions incent members to pursue the care that keeps them healthy to avoid those higher-cost claims down the road.
2. A plan designed to be used often – Another hallmark of value is something that is used frequently. For example, if you have a gym membership and you rarely go, that membership isn’t very valuable. However, if you’re there every day taking advantage of the amenities, you feel like you’re getting your money’s worth and want to hold on to it.
Unfortunately, the traditional model of health insurance has deterred utilization and is not empowering individuals to pursue preventive care. At Gravie, we’re helping turn the tide for health benefits – recognizing that incentivizing people to use the health system in a proactive and responsible way is best not only for a member’s health but also for the pocketbooks of everyone involved.
3. A plan with more coverage of the services that keep members healthy – While straightforward plan designs can make it easier to navigate healthcare, coverage is what counts most. You usually don’t have to go far to hear people grumble about medical services that aren’t covered. Plans that provide coverage on everything from specialist visits to generic prescriptions incent members to pursue the care that keeps them healthy to avoid those higher-cost claims down the road.
With numerous vendors and point solutions available, how can employers best prioritize them to control costs? Where can employers see some of the biggest returns on investment (ROI)?
There’s an influx of new vendors and point solutions available today, so it’s best to focus on a few key priorities that best reflect the needs and desires of your employer group. Offering too many add-on benefit options during open enrollment may result in confusion and low utilization of these services.Brokers can also help you better understand how your company’s health plan is being used, what services are being utilized most, and where additional solutions could complement them. Claims data can lend insight into the most highly used health services, such as prenatal, mental health, preventive care, and beyond. These may give an indication of what point solutions will help cover any gaps and help round out your offerings.
For Gravie employees, we offer our Comfort health plan, in addition to fully covering areas like mental health care. Plus, we offer point solutions, including virtual services like Sword for musculoskeletal health, FitOn Health virtual fitness, and Teladoc Health for remote doctor visits.
It takes time and resources to set up a new point solution provider, so working with a trusted broker and staying focused on key priorities will give your employees and company the best ROI.
What advice do you have for other employers heading into open enrollment?
Now is not the time to renew your status quo traditional health benefits plan just to keep things easy.Costs are rising, and employees are hungry for more modern and useful health benefits. Solutions are available to help control costs and delight employees and their families. If your broker isn’t bringing you innovative and creative solutions, find a broker who will!
Change can be hard, but sometimes it’s necessary. HR (human resources) leaders at DCI, a stainless-steel manufacturer based in Minnesota, had been struggling with high health plan costs for several years and were getting desperate for a change when they turned to a new broker. In 2020, they were introduced to Gravie’s Comfort plan, and it’s helped them realize 30% savings while giving their employees with high-risk jobs and medical conditions peace of mind and affordable coverage.
Author Bio
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Amy Spartz is the Chief People Officer of Gravie, an employer health benefits provider. |
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