It’s a job applicant’s market: What it means for employee benefits
How do you attract top talent in today’s hiring landscape? Stock options and paid holidays may no longer be enough to attract top talent in today's competitive hiring landscape. Continue reading to learn more.
When it comes to employee benefits, stock options and paid holidays may no longer be enough to attract top talent — especially in today’s competitive hiring landscape.
With job openings on the rise, it has become more difficult for companies to compete for the most talented, highly sought-after candidates. The strong labor market also means more Americans are willing to quit their current job in favor of something better — in fact, this past year, employees voluntarily left jobs at the highest rate since 2001.
Comprehensive employee benefits packages have never been more important for employers looking to hire the best and brightest. Studies have shown as many as 60% of people cite benefits as a major deciding factor when considering whether to accept a job offer. The question is: What kinds of benefits are employees looking for most?
Of course, there are some benefits that have become commonplace among employers, including health and dental insurance, retirement plans and paid time off. However, these incentives may just be table stakes in the hiring game these days — for example, nearly half of privately owned firms in the United States offer health insurance, and 79% of Americans work for an employer sponsoring a 401(k)-style retirement plan.
Although many employees have come to expect benefits like health insurance and retirement plans, employers don’t need to go above and beyond as many larger companies, like Google, do — offering free meals and on-site haircuts. Flashy perks may seem appealing on the surface, but in reality, employees are seeking benefits that support them through — and help alleviate the stress that can come with — life’s major moments.
This kind of support can come in a number of forms. For example, many companies have seen their employees push for more comprehensive parental leave benefits, giving new parents time they need to refresh and bond with their child. While many countries around the world offer more than a year of paid parental leave, the U.S. doesn’t guarantee paid time off for new parents, and the national average for parents taking time off after having a child is only 10 weeks.
Employees may want to feel empowered to further their education or professional development, helping to bolster their confidence in their career. Starbucks is a proponent of this. To help employees take their education to the next level, the company offers full tuition reimbursement for online degrees through Arizona State University.
These benefits are great, but don’t cover all aspects of life where employees need support. For example, if an employee finds themselves in a situation where they need to care for an elderly parent, family leave may not be enough — especially as they find themselves navigating complicated Medicare/Medicaid documents and nursing home or hospice payments. Particularly in situations that pack on a lot of additional stress, companies can provide comprehensive financial wellness plans as a way to give their workforce peace of mind.
Financial wellness plans are an emerging area of employee benefits and provide assistance with everything from estate planning, to advice from certified personal accountants, to identity theft protection. There’s a clear demand for these services, too. PWC’s 2018 financial wellness survey found that over 50% of employees are stressed about their finances and want help.
Financial wellness plans don’t just offer practical benefits, but emotional benefits as well. Most people don’t realize how many instances in life, big or small, require some form of financial guidance, and without any professional support, these matters can be intensely stressful. Whether an employee is creating a prenuptial agreement, taking out a mortgage when buying their first house, or trying to navigate student loans when sending their child to college, knowing their company provides support and counsel for these situations alleviates the associated pressure. Employees want to know their employers can help them tackle anything life throws at them.
Ultimately, employees have come to expect benefits and perks providing coverage for all stages of life — whether they’re planning to have a child, want to take time to get their degree or are beginning to think about estate planning on top of traditional retirement planning. To attract and retain the best talent in 2019, employers should think first and foremost about how they can support their workforce in achieving financial wellness.
SOURCE: Freedman, D. (22 January 2019) "It’s a job applicant’s market: What it means for employee benefits" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/its-a-job-applicants-market-what-it-means-for-employee-benefits
How to Speak to Your Employees About Their Intimidating Benefits
Employers spend thousands annually to secure and offer benefits to their employees. However, a small amount of time and money are devoted to ensuring employees understand and appreciate their benefits. Properly communicating – what you say, how you say it and to whom you say it to – can make a tremendous difference in how employees think, feel and react to their benefits, employer and fellow co-workers.
In this installment of CenterStage, Jamie Charlton, founding partner and CEO of Saxon Financial Services, discusses the importance of offering sound education of benefits to employees, as well as how to effectively communicate their benefits in a clear, concise manner. Through 18 years in the financial services field, Jamie has instilled a focus on stressing to employers the importance of communicating and educating employees on all that is available currently and what may change with each upcoming plan year. Jamie believes a focus on premiums leads to “next level benefits”, an offering Saxon delivers.
The Need for Benefits Communication
Clearly communicating benefits is an increasing issue due to the complex dynamics of benefits plans. Previously, benefits decisions have been made primarily by employers. As a result, employees have not become educated consumers about their benefits or on how to implement them. This absence of engagement, as Jamie notes, causes employees to enroll in benefits that don’t fit their needs, pay too much for their coverage and not discover the full advantage of their offerings. Good communication is important and should cover all matters regarding plan offerings to employees and their dependents alike. The goal of a proper benefits plan, Jamie states, is to be enjoyable, comprehendible, and easily accessible. However, there currently exists an infliction point in employee benefits, and the entire process is changing.
This change is a factor of two main topics: (1) the continuing rise in medical costs and health insurance premiums and (2) a truly multigenerational workforce within the workplace. So how does an employer communicate their benefits to their employees?
Employers seeking to spread the word about their benefits offerings are continuing to seek out the expertise and experience found through Saxon. Understanding there is no one-size-fits-all method for every employer, Saxon delivers tools through tested methods to get your message across to employees. We explore your company’s offerings and assist you in crafting the perfect method to communicate and educate your employees on their existing plan offerings. Jamie gives the example of wellness programs and how to broadcast these offerings. Utilizing channels in which employees are bound to check – computers and smartphones – Saxon places the knowledge of how to display these offerings through informational web pages or email blasts.
Proper Benefit Education Begins with Saxon
While the methods above serve as channels for reaching employees, nothing compares to a direct, in-house explanation of your benefits to ensure your message is addressed and comprehended. Unique to Saxon is what Jamie notes as the “secret sauce” of Saxon’s employer and employee empowerment – the annual open enrollment meeting, which consists of nothing more than a step-by-step walk through of your entire health plan. This annual ‘seminar’ within your office closely examines the “nuts and bolts” of your plan to ensure everything is in-tact, working and done so with comprehension across the entirety of the organization.
Saxon understands the complexity of the modern healthcare scene and therefore is driven to provide the most comprehensive breakdown of your plan. Have more than one? No problem – We can compose a side-by-side analysis of your plans to show not only employers but employees where the strongest assets lie. Additionally, we stress the importance of shopping around at renewal time to make sure you get the best you can for your money. Jamie explained the goal of the meeting, as well as Saxon’s continued service year-round, is to “empower employees to have a choice.”
Empowerment from Saxon comes in many different forms. Just one of these many ways discovered through Saxon’s annual meeting is placing the power of online benefits administration at the fingertips of employees. Traditionally, when an employee needed to update their plan (i.e. having a new baby in the middle of a plan year), they were entitled to visiting their employer’s office and updating their plan by filling out a form. Risks associated with this older process included the “potential loss of documentation and therefore an inaccurate reading of an employee’s coverage needs”, said Jamie. The online method saves time, stress and paper.
How Saxon Helps
At Saxon, we want to invest in you. We begin by engaging experts that truly listen, building successful strategies that stay focused on your vision and goals. We strive to not be a name you turn to for assistance but a knowledgeable face always at your service. Saxon exists to care, cultivate and empower through relationships, expertise and exceptional standards of service. From finding a doctor, solving a complicated claim or partnering with an insurance agency to help protect your company’s sensitive medical data to ensure you are HIPAA compliant – with us; it’s personal.
To begin the conversation with Jamie on how to better communicate with your employees, contact him at (513) 573-0129.
Free snacks won’t retain workers long term. Here’s what will
According to the Society for Human Resource Management (SHRM), 32 percent of employers offer company-paid snacks and beverages to their employees. Read on for information on what will retain workers long term.
Free snacks at work can help workers curb late afternoon hunger — but will employees be more inclined to stick around because the office has free food? Probably not, according to a report from recruiting and staffing firm The Execu Search Group.
Offering free snacks at work seems like a good way to attract and retain workers, but it is a misconception that millennials, the largest generation in the workforce, want the benefit, the report says.
The trend of offering free snacks to workers started with big Silicon Valley tech companies — like Facebook and Google — and spread to employers of all sizes across the U.S. According to research from the Society for Human Resource Management, 32% of employers offer company-paid snacks and beverages to employees, up significantly from last year, when 22% offered them.
Free snacks can be a great addition to the office, but only if an employer offers others substantive benefits, says Edward Fleischman, CEO of The Execu Search Group. On its own, he adds, food offers little value.
“[Free food] is great. But some companies are using it as an incentive to keep people there — and that’s not going to keep people there,” he says.
Instead of offering small perks like snacks, the report says that if a company wants to retain millennial workers, it should offer benefits that allow greater work flexibility, more vacation time, training and development, and opportunities to make a difference. In particular, employers should consider instituting benefits like a flexible work schedule and unlimited paid time off, Fleischman says.
“That’s a keyword now — flexibility,” he says. “The flexibility to work from home when they need to, or want to.”
Millennials, in particular, he says, want the ability to work whenever and wherever they want. While there might be initial concern that allowing employees to work from home means they won’t be as productive, this isn’t the case. Millennials are very connected to their devices and will typically respond even after work hours are over, Fleischman says.
“They’ll respond on their iPhone at 11 o’clock at night. They may be at a restaurant, but they’ll respond to you,” he says.
Making changes like adding an unlimited PTO policy or a flexible work schedule could be difficult for legacy companies to institute, Fleischman says. It often requires trust that employees won’t abuse the policy. Additionally, older generations and executives may be used to stricter PTO policies, so it could require an adjustment, he adds.
But more companies are taking the plunge to offer these kinds of benefits. The number of employers offering unlimited PTO jumped from 1% in 2014 to 5% in 2018, according to SHRM. Employers including General Electric, Dropbox and Grant Thornton all offer the benefit, according to Glassdoor.
Fleischman says that in a competitive labor market, benefits are a key factor to recruiting and retaining a solid workforce. If a company is not offering solid benefits, it could mean the difference between accepting a job and looking elsewhere.
“As a company, you have to really set yourself up nicely to recruit that person and retain that person,” he says.
SOURCE: Hroncich, C. (28 January 2019) "Free snacks won’t retain workers long term. Here’s what will" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/free-snacks-wont-retain-workers-long-term-heres-what-will?brief=00000152-14a7-d1cc-a5fa-7cffccf00000
Move over mainstream: Alternative health options a road to better value
A number of employers are seeking alternative ways to get better value for their healthcare spending. Read this blog post to learn more about alternative health options.
While employers may be the largest purchasers of healthcare outside of the federal government, rarely does one organization have enough influence when negotiating with the powerful health plans and provider systems. As a result, employers — and ultimately the consumers for whom they purchase healthcare services — pay the price.
Instead of taking these lumps of coal sitting down, there are a growing number of employers on the cutting edge of healthcare purchasing seeking alternative ways in 2019 to get better value for their healthcare spending. They are looking for the diamonds in the rough.
In more than half of the healthcare markets in the U.S., providers have merged reducing competition and leaving employers and consumers with little choice for their care. Employers must stop insisting that health insurance products provide access to the broadest network of healthcare providers — if providers know they’ll be kept “in network” no matter how they behave, employers and payers further reduce their negotiating position. Employers also should band together to be sizable enough to call the shots, but this rarely happens.
While this lack of market power and influence is a major frustration for employers, it’s far from the only one. Educated employers also know that the healthcare system produces uneven quality and high prices have nothing to do with excellent care. The amount an employer pays for a service merely represents the relative negotiating strength of the health insurance carriers and providers.
As prices continue to drive healthcare cost growth, Americans are finding their healthcare unaffordable and are willing to trade choice for affordability. Many Americans no longer view having the ability to pick any doctor they choose as essential if it means increased premiums and cost-sharing that comes at the expense of other basic needs. These shifting attitudes represent an opportunity for employers seeking diamonds to pursue the following new healthcare benefits options. Here are some.
Narrow networks: Health insurance plans built around a narrower network that cuts out care providers who are outlandishly expensive or have a particularly poor record on quality. Alternatively, center a smaller network around a direct contract with an accountable care organization selected for its potential to deliver higher quality and value. More commercial health insurance carriers and lesser known third-party administrators are offering and supporting these options. Premiums and cost-sharing are typically lower for the consumer than with broader network plans.
Centers of excellence (CoE): Steer patients to designated high-quality providers with expertise in a given medical area who are willing to enter into an alternative payment arrangement or offer a more reasonable price in return for more patients. Make CoEs attractive through more generous coverage or make them mandatory if employees want an elective or non-emergent procedure (e.g., bariatric or spine surgery). Either way, employers reduce the risk that employees will receive subpar or low value care.
Alternative sites of care: Increase access to and use of alternative sites of care including onsite or near-site clinics and telehealth services. These enhance the convenience of primary or behavioral healthcare for employees and can help the employer better control referrals to overpriced hospitals or specialists.
So, move over mainstream. When it comes to the tactics employers use to purchase healthcare, alternative is likely to become less fringe. Narrow networks, CoEs or alternative sites of care may not solve all of the frustrations. But employers’ pursuit of these new models sends a strong signal that lumps of coal aren’t going to cut it. Employers are on the hunt for a shinier, more attractive set of solutions.
SOURCE: "Move over mainstream: Alternative health options a road to better value" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/opinion/move-over-mainstream-alternative-health-options-a-road-to-better-value?brief=00000152-1443-d1cc-a5fa-7cfba3c60000
Why chiropractic services could be the next big thing in wellness
Could chiropractic services be the next big thing in wellness? The American College of Physicians' care guidelines recommends the conservative, non-pharmacologic treatment chiropractors provide. Read on to learn more.
The next popular wellness perk could be offering chiropractic services at on-site medical centers.
On-site or near-site clinics typically offer services to employees including first aid, occupational health, condition management, wellness and ancillary services — and increasingly chiropractic care.
Employees, healthcare administrators and physicians are recognizing the health and employee satisfaction benefits of integrating chiropractic care into multidisciplinary settings, research suggests. Care guidelines from the American College of Physicians recommend the conservative, non-pharmacologic treatment chiropractors provide. Employers are finding that adding chiropractic care to their worksite health center teams reduces direct costs of care, decreases opioid prescriptions for neuro-musculoskeletal episodes and improves health outcomes.
Healthcare costs for employers are expected to reach $15,000 per employee in 2019, according to the National Business Group on Health. The direct and indirect costs associated with low back pain are estimated between $85 billion and $238 billion, and expenditures for back pain are rising more quickly than overall health expenditures. To help stem that growth, as many as 65% of large companies are expected to offer on-site or near-site care by 2020, NBGH reports.
Employer focus on improving workers’ health and wellness has gained momentum in recent years, as evidenced by last year’s announcement from Amazon, Berkshire Hathaway and JPMorgan Chase that they would form an independent healthcare company for their U.S. employees. Another example is employers with self-funded health plans contracting with narrow, high-quality provider networks and even negotiating directly with local hospitals on their prices.
Clinics offer similar cost control and oversight benefits. More importantly, they offer faster and easier access to care that keeps employees healthy, motivated and engaged — and out of the emergency room or hospital. As such, 54% of large employers currently offer on-site or near-site clinics, while another survey showed that 94% of employers reported their clinics improved employee health and 95% said they contributed to increased employee productivity.
Each clinic’s services, cost-sharing, use privileges and staffing can be customized to meet the needs of a specific organization and employer benefit plans. These decisions should be reflective of the objectives of the sponsoring employer and the healthcare needs of the population.
While most healthcare clinics are located on-site or close to the workplace, a growing number are near-site or shared clinic locations, serving populations from multiple locations of the same employer or various employers. Additionally, more care is being delivered virtually. The objective is to provide easy access and immediate attention for employees, at little or no cost, for a host of services and products that an employee would normally have to leave the work site to obtain.
According to a recent survey by the National Association of Worksite Health Centers, the majority of employers reported their workers had expressed interest in chiropractic services at their clinics. The nationwide cost for treatment and management of low back pain and arthritis has reached $200 billion annually. Another study attributes two-thirds of these costs to lost wages and reduced productivity.
The fact that chiropractors deliver drug-free therapies should be particularly meaningful to employers in light of the country’s opioid abuse epidemic. The good news is a recent study published in “The Journal of Alternative and Complementary Medicine” concludes that for adults receiving treatment for low back pain, the likelihood of filling a prescription for an opioid was 55% lower for those receiving chiropractic care than for adults not receiving chiropractic care.
In particular, chiropractors follow evidence-based and value-based guidelines to promote safety and effectiveness. Findings like these and many others show that by adding chiropractic care, employers will strengthen the opportunity for cost savings, improved outcomes, greater worker productivity and stronger employee retention.
SOURCE: Lord, D. (25 January 2019) "Why chiropractic services could be the next big thing in wellness" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/why-chiropractic-services-could-be-the-next-big-thing-in-wellness?brief=00000152-14a7-d1cc-a5fa-7cffccf00000
Analytics are key to wellness success. Here’s why
How can benefits managers utilize analytics to maximize their companies’ investments? Continue reading to learn how analytics can help employers optimize their health, wellness and other benefits programs.
What do benefits managers have in common with Walmart? Both have the power to leverage data to create a sustainable competitive advantage.
Like other leading retailers, Walmart mines vast quantities of data and applies predictive analytics to fuel solutions that improve store checkout processes, maximize inventory turnover and optimize product placement. Data analytics also helps the company identify shoppers’ preferences and personalize their shopping experiences. New parents, as identified by prior purchases, might receive digital coupons for infant products, for instance.
Walmart’s data intelligence gives the international retailer the ability to act upon insights quickly. One Halloween, for example, a novelty cookie generated high sales across the United States, but no sales at all in two U.S. stores. The company’s data analytics swiftly ascertained that the cookies were never put on the shelves at those stores. The problem was resolved immediately through high-visibility product placement.
Employee benefits managers have similar opportunities to maximize their companies’ investments. The effective use of disparate data can help employers optimize their health, wellness and other benefits programs, and pinpoint the true value of their total rewards.
A data-driven approach to benefits analytics
Three out of five U.S. employers use health screenings and risk assessments to help employees detect conditions earlier, when treatment might be more effective and costs lower. However, the majority of employers do not measure the impact of these programs.
Those that do assess a program’s impact typically compare the dollars spent on it with the medical claims saved. Forward-thinking benefits managers, however, are examining the total value of investment (VOI) instead. This innovative approach analyzes not only the effect of a wellness initiative on medical costs but also its influence on productivity, absenteeism, disability costs and other factors.
By aggregating and analyzing different types of data — such as claims and non-claims data — benefits managers can determine crucial correlations between preventive screenings, health outcomes and healthcare costs. Thus, they can develop more targeted benefits packages that reduce costs while improving overall employee health and productivity.
Case Study: Implementation of predictive analytics in preventative screenings
One recent initiative undertaken by a state employee health plan demonstrates the power of data analytics to reveal the VOI of preventive cancer screenings.
The state provides medical benefits to around 205,000 employees and dependents. The agency that administers the benefits program wanted to know whether preventive cancer screenings improved health outcomes, and whether the program was cost effective. Analyzing screening and claims data showed that 6% to 8% of those who underwent screenings for breast, colorectal or cervical cancer received a diagnosis of cancer or a related condition. The follow-up and all-important question was: did those members experience different outcomes than members whose cancers were not detected through screenings?
The results indicated a high VOI for members’ preventive cancer screenings:
- The majority of new cases of breast, colorectal and cervical cancer were detected through preventive screenings.
- Among members who received preventive screenings, 5% to 11% underwent treatments because of screening results — and not just for cancer. Treatments included removal of benign tumors or polyps.
- Those diagnosed with breast, colorectal or cervical cancer through the screenings experienced less invasive treatments and had fewer complications than those diagnosed through other means.
- New cases of breast and cervical cancer diagnosed through the preventive screenings had lower costs, on average, than cases detected through other means.
Positive action through data
This cancer screening example illustrates how data analysis can empower benefits managers to improve employees’ health outcomes while reducing costs. Analytics can help employers invest in more effective care management resources, as well as design benefits packages that provide positive VOI in wellness, screening and preventive care.
With the cost of health benefits continuing to rise, it’s critical to leverage data to determine the total value of wellness investments. Just as retailers use data analytics to improve the retail experience and increase profits, benefits managers should use data analytics to guide the design and evaluation of benefits and other rewards.
SOURCE: Kramer, M. (21 January 2019) "Analytics are key to wellness success. Here’s why" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/analytics-are-key-to-wellness-success-heres-why
Developing guidance could free employers from ACA mandate
A future path for employers to avoid ACA employer mandate penalties was outlined in a recent IRS notice. Read this blog post from Employee Benefits News to learn more.
A recent IRS notice provides a future path for employers to avoid ACA employer mandate penalties by reimbursing employees for a portion of the cost of individual insurance coverage through an employer-sponsored health reimbursement arrangement.
While the notice is not binding and at this stage is essentially a discussion of relevant issues, it does represent a significant departure from the IRS’s current position that an employer can only avoid ACA employer mandate penalties by offering a major medical plan.
Here is everything employers need to know.
Background: As described in more detail in a previous update, the ACA currently prohibits (except in limited circumstances) an employer from maintaining an HRA that reimburses the cost of premiums for individual health insurance policies purchased by employees in the individual market.
Proposed regulations issued by the IRS and other governmental agencies would eliminate this prohibition, allowing an HRA to reimburse the cost of premiums for individual health insurance policies (individual coverage HRA) provided that the employer satisfies certain conditions.
The preamble of the proposed regulations noted that the IRS would issue future guidance describing special rules that would permit employers who sponsor individual coverage HRAs to be in full compliance with the ACA’s employer mandate. As follow up, the IRS recently issued Notice 2018-88, which is intended to begin the process of developing guidance on this issue.
On a high level, the ACA’s employer mandate imposes two requirements in order to avoid potential tax penalties: offer health coverage to at least 95% of full-time employees (and dependents); and offer “affordable” health coverage that provides “minimum value” to each full-time employee (the terms are defined by the ACA and are discussed further in these previous updates).
Offering health coverage to at least 95% of full-time employees: Both the proposed regulations and notice provide that an individual coverage HRA plan constitutes an employer-sponsored health plan for employer mandate purposes. As a result, the proposed regulations and notice provide that an employer can satisfy the 95% offer-of-coverage test by making its full-time employees (and dependents) eligible for the individual coverage HRA plan.
Affordability: The notice indicates that an employer can satisfy the affordability requirement if the employer contributes a sufficient amount of funds into each full-time employee’s individual coverage HRA account. Generally, the employer would have to contribute an amount into each individual coverage HRA account such that any remaining premium costs (for self-only coverage) that would have to be paid by the employee (after exhausting HRA funds) would not exceed 9.86% (for 2019, as adjusted) of the employee’s household income.
Because employers are not likely to know the household income of their employees, the notice describes that employers would be able to apply the already-available affordability safe harbors to determine affordability as it relates to individual coverage HRAs. The notice also describes new safe harbors for employers that are specific to individual coverage HRAs, intending to further reduce administrative burdens.
Minimum value requirement: The notice explains that an individual coverage HRA that is affordable will be treated as providing minimum value for employer mandate purposes.
Next steps: Nothing is finalized yet. Employers are not permitted to rely on the proposed regulations or the notice at this time. The proposed regulations are aimed to take effect on Jan. 1, 2020, if finalized in a timely matter. The final regulations will likely incorporate the special rules contemplated by the notice (perhaps with even more detail). Stay tuned.
This article originally appeared on the Foley & Lardner website. The information in this legal alert is for educational purposes only and should not be taken as specific legal advice.
SOURCE: Simons, J.; Welle, N. (17 January 2019) "Developing guidance could free employers from ACA mandate" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/developing-guidance-could-free-employers-from-aca-mandate?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
No primary care doc, no problem: How millennials are changing healthcare
Do you have a primary care physician? Forty-five percent of 18- to 29-year-olds reported that they do not have a primary care physician. Read this blog post from Employee Benefit News to learn more.
Millennials, and Generation Z behind them, are changing the way they access healthcare. In fact, 45% of 18- to 29-year-olds say they don’t have a primary care physician. Instead, they’re opting for on-demand healthcare.
Traditionally, individuals and families see primary care physicians several times a year and build relationships with their doctors over time. Visiting the same primary care physician when an illness strikes, or for an annual wellness checkup, can help the doctor notice changes in a patient’s health and catch issues before they become more serious (and costly).
But for millennials, having a primary care physician isn’t necessarily a priority.
That’s in part because they seem to prefer on-demand healthcare options, such as urgent care, drug store clinics and telemedicine services, which are easily accessible and typically include shorter wait times. The number of urgent care centers reflects the trend — they’re projected to grow by 5.8% in 2018, according to the Urgent Care Association.
Then there is employers’ shift away from health maintenance organizations, which often required that each employee choose a primary care doctor at the start of the plan. HMOs also require a referral from the primary care physician to see specialists. Recent research shows that most often, employers offer preferred provider organizations (84%), while 40% offer consumer-directed health plans and 35% offer HMOs.
Finally, physician shortages are leading to longer wait times for appointments. The U.S. population continues to grow and age, which may lead to a shortage of 120,000 primary and specialty doctors by 2030, according to the Association of American Medical Colleges.
For employers, it’s important to understand the reasons behind the shift to on-demand healthcare and educate employees to ensure they can get appropriate medical attention when they need it.
One crucial part of this education is helping employees understand when they should visit urgent care versus the emergency room, and reminding them that telemedicine is available. More than 95% of large employers and just over one-third of small- and mid-size employers offer telemedicine benefits. But adoption rates among employees remain low — only 20% of large employers report utilization rates above 8%, according to the National Business Group on Health.
Ensure your employees know that the service is available throughout the year and help them understand the cost if any is associated with the service. You may consider offering $0 copays for telemedicine visits to encourage employee use.
Encourage employees to get a wellness visit each year to help uncover health issues and take steps to prevent others. One way to do this without forcing employees to wait for an appointment or commit to a doctor is to bring the service in-house. Increasingly, large employers are adding this service to help employees stay healthy. In fact, one-third of employers with more than 5,000 employees and 16% of employers with 500-4,999 employees now have onsite clinics. Another 8% of midsize employers plan to add clinics in 2019.
Providing health assessments as part of a health and wellness program is another way to get employees, especially money conscious millennials, in front of a doctor. Younger workers are likely to embrace incentives or premium discounts that are tied to a physician visit.
Direct primary care is yet another employer option to provide easy-to-access primary care. With direct primary care, employers partner with primary care physicians to offer a designated doctor for their employees. The benefit for employees is more face time with a doctor and the opportunity to get personalized care.
Importantly, employees who have known chronic issues should see a primary care doctor regularly to help monitor and manage their condition.
The trend toward seeking on-demand healthcare at alternative sites isn’t likely to reverse direction any time soon. Instead, it’s up to employers to understand why it’s happening and educate employees of all ages on their options for care.
SOURCE: Milne, J. (7 January 2019) "No primary care doc, no problem: How millennials are changing healthcare" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/no-primary-care-doc-no-problem-how-millennials-are-changing-healthcare?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
4 ways to help employees master their HDHPs in 2019
Do you offer High Deductible Health Plans (HDHPs) to your employees? Whether your employees are HDHP veterans or newbies, there are things companies can do to help improve employee understanding. Read this blog post to learn more.
With 2018 in the books, now is a great time to give HDHP veterans and newbies at your company some help understanding — and squeezing more value out of — their plans in 2019.
Here are four simple steps your HR team can take over the next few months to put employees on the right track.
1. Post a jargon-free FAQ page on your intranet
When: Two weeks before your new plan year begins
Keep your FAQ at ten questions (and answers!), maximum. Otherwise, your employees can get overwhelmed by their health plans and by the FAQ.
When writing up the answers, pretend you’re talking directly to an employee who doesn’t know any of the insurance jargon you do. Keep it simple and straightforward.
Make sure your questions reflect the concerns of different employee types: Millennials who haven’t had insurance before, older employees behind on retirement, employees about to have a new kid, etc. To get a clear sense of these concerns, invite a diverse group of 5-7 employees out for coffee and ask them.
Some sample questions for your FAQ might be:
• Is an HSA different from an FSA?
• Do I have to open an HSA?
• How much money should I put in my HSA?
• This plan looks way more expensive than my PPO. What gives?
2. Send a reminder email about setting up an HSA and/or choosing a monthly contribution amount
When: The first week of the new plan year
When your employees don’t take advantage of their HSA not only do they miss out on low-hanging tax savings, your company misses out on payroll tax savings, too.
So right at the start of the new year, send an email that explains why it’s important to set up a contribution amount right away.
A few reasons why it’s really important to do this:
- You can’t use any HSA funds until your account is fully set up and you’ve chosen how much you’re going to contribute.
- If you pay for any healthcare at all next year, and don’t contribute to your HSA, you’re doing it wrong. Why? You don’t pay taxes on any of the money you put into your HSA and then spend on eligible health care…which puts real money back in your pocket. (Last year, the average HSA user contributed about $70 every two weeks and saved $267 in taxes as a result!)
- There’s no “use it or lose it” rule! Any money you put into your HSA this year is yours to use for medical expenses the rest of your life. And once you turn 65, you can use it for anything at all. A Mediterranean cruise. A life-size Build-a-Bear. You name it.
3. Give your HDHP newbies tips on navigating their first visit to the doctor and pharmacy
When: The week insurance cards are mailed out
When employees who are used to PPO-style co-pays realize they have to pay more upfront with their HDHP, they can get…cranky. And start to doubt their plan choice — or worse, you as their employer choice.
So set expectations ahead of time to avoid employee sticker shock and to prevent you from getting an earful. Specifically, remind employees which types of visits are considered preventative care (and likely free) and which aren’t. Then explain their options when it comes to paying for — and getting reimbursed for — the visit.
4. Share tips on saving money on care with all your HDHP users
When: Any time before the end of the first quarter of the year
Specifically, you might recommend that your employees:
- Check prescription prices on a site like Goodrx.com before they buy their meds
- Visit an urgent care center instead of the ER, if they’re sick or hurt but it’s not life-threatening
- Use a telemedicine tool (if your company offers one) to get free online medical advice without having to leave their Kleenex-riddled beds
Sure, following this communication schedule requires extra elbow grease. But if you defuse your employees’ stress and confusion early, they’ll feel more prepared to take control of their healthcare and get the most out of their plans. And as a bonus, you and your team get to spend less time answering panicked questions the rest of the year.
SOURCE: Calvin, H. (2 January 2019) "4 ways to help employees master their HDHPs in 2019" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/4-ways-to-help-employees-master-their-hdhps-in-2019
When every day is bring-your-kid-to-work day
Canopy, a software developer, has adopted many family-friendly employee benefits, including a benefit that allows employees to bring their newborns to work up until they are about 6 months old. Continue reading this blog post to learn more.
When recent college graduate Hanna Arntz first interviewed for a job at Canopy, a Utah-based startup that develops practice management software for accounting firms, the recruiter asked her about her long-term career goals. Arntz wasn’t sure about what she wanted, but she was sure of one thing: She wanted to be a mom.
The recruiter told Arntz that Canopy was developing benefits for pregnant and working mothers. Arntz was interested, and accepted a position at the company in 2017. She is now a talent acquisition manager, a role that allowed her to witness the company’s development of family-friendly benefits firsthand.
“We had a lot of focus groups for parents within Canopy to understand what parents need in the workforce and how to retain them, particularly mothers,” she says.
Canopy now offers 10 weeks of maternity leave, plus a two-week ramp period where parents can work part-time to readjust to work. The company also offers two weeks of paternity leave. In addition to these policies, Canopy has an unusual offering: It allows parents to bring their newborns into work every day up until they are about 6-months-old.
Canopy CEO Kurt Avarell says many of the employees on the more than 300-person team have children, and there is a level of understanding when new parents bring their little ones to work. The company also welcomes older children into their office from time to time.
“Pretty much any day is a bring-your-kid-to-work day,” he says. “It’s pretty typical to have kids in the office.”
Arntz gave birth to her son, Jude, seven months ago. After taking maternity leave, she returned to the office with her newborn. Initially, she was nervous about bringing him to work.
“I was worried he was going to be crying in meetings,” she says. “There was so much anxiety around that.”
Since she has returned to work, though, colleagues have not treated her any differently, she says. Balancing her work with taking care of her son can be tough, she admits, but the company has been supportive.
“Even if the baby was crying and I was bouncing him, they’d still be looking at me in the eye and engaging me in conversation,” she says.
Employers like Canopy are beginning to recognize the value of adding family-friendly benefits with many beefing up paid parental leave, breast milk shipping, and free babysitting services. For example, dozens of companies including Bristol-Myers Squibb, CVS Health, Dollar General, Eataly and General Mills made changes to their paid parental leave benefits in 2018. Meanwhile, Home Depot, Trip Adviser, Vox Media and Pinterest added breast milk shipping benefits, and Starbucks began offering subsidized child care as a benefit.
In addition to its maternity and paternity leave benefits, Canopy has a flexible paid time off policy that allows new parents to work from home. The company also has separate mothers’ and fathers’ rooms in the office and provides new parents with a gift of diapers, clothes, baby care products and gift cards.
Avarell says offering family-focused benefits is a good way to retain employees because it shows workers that they are supported at home and in the office. It’s a part of Canopy’s culture that he hopes to maintain long-term.
As for Arntz, the benefits have played an integral part of her staying at the company.
“The company has invested in me for a reason,” she says. “They want to retain me.”
SOURCE: Hroncich, C. (7 January 2019) "When every day is bring-your-kid-to-work day" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/when-every-day-is-bring-your-kid-to-work-day?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001