Managing Financial Risk through Enhanced Benefits.
As health care cost continue to rise and employers are being forced to cost shift employees now are faced with greater out of pocket cost than any other time. The average contribution to family coverage has increased to 81% since 2004. What does this mean in real time? The average family employer sponsored health insurance plan is now in the neighborhood of $17,000! Healthcare cost will continue to rise but employers can help mitigate this exposure for their employees by allowing our our Consultants to put in place programs that will transfer risk to carriers. The Enhanced space has changed just as rapidly as Health Care cost. There is so much flexibility that can be built on an Individual or Group basis that it should be front, and center when deciding what coverage will be offered to employees for Open Enrollment or an off cycle addition.
Consider a recent study conducted by Windsor Strategy Partners; The analysis of a specific sample case showed a 1 in 10,000 chance of receiving more than $3,000 in claims payment over 10 years from a vision carrier; or a 1 in 1,000 chance if receiving more than $5,000 in claims payment over 10 years for dental; but a 1 in 1,000 chance in having a critical illness diagnosis over 10 years which could cost your employee $34,000! This is one example where perceived need outweighs financial risk but shows the opportunity for a meeting with our consultants, to insure that the proper risk transfer is in place minimizing the financial hit when life strikes at your employees health.
Voluntary/Enhanced can no longer be an afterthought that stays on auto pilot with little to no marketing. There are to many enhancements that have come on line, that require dissection just like the core medical to insure that coverage is affordable and has deep value add benefits that will ring fence the impact of cost during a health event. Are you seeing options or the same carrier with your plan?
Below you will find some questions that employees should be asking: