Companies considering a move to a consumer-driven healthcare (CDHC) model to cut costs and keep their health plan budgets under control need to focus on employee needs.
If not properly communicated, moving employees to a CDHC model can be perceived as no more than a massive cost-shift, and will damage morale and productivity. But, if done right, a move to a CDHC model can engage employees, motivate them toward better health, help them understand their employer’s investment in benefits, and save the company money. Consumer-driven health plans can be a shining star in a rough economy. Just keep the focus where it should be: on employees and their health needs.
Here are some factors to consider when designing, launching and enrolling, and supporting a new CDHC model.
Plan Design
- Demographics. There is no one-size-fits-all solution. Match your plan to the demographics and health needs of your employees and their families.
- HSAs versus HRAs. While health savings accounts (HSAs) have been the big push over the last couple of years, they can be a harsh reality for lower-income employees, especially those with families who are subject to the aggregate deductible, and those on expensive maintenance medications. A health reimbursement account (HRA) may be a better choice to get employees thinking about their expenses without exposing them to such high deductibles or the full out-of-pocket costs of prescription drugs. They can also be a better choice for the company, as employer-contributions don’t walk out the door when employees leave.
- Preventive care. Whatever the choice, priority should be placed on generous coverage for preventive care to be consistent with the company focus on prevention as a means of helping employees gain and maintain better health, and improving overall productivity.
- Employer contribution. Including an employer contribution demonstrates the company’s commitment to remaining engaged in their employees’ healthcare, even while the company saves on healthcare costs as a result of moving from traditional health benefits to a CDHC model.
- HMO or no? There’s no shame in keeping HMOs around. HMOs are a great fit for many families. While CDHC purists will say they shield employees too much from the true cost of healthcare, access to an HMO may be the key to keeping some of your employees healthy and on the job.
Launch and Enrollment
- Communication. Communication is critical to launching a new CDHC model and getting employees to enroll, especially when traditional options are still on the table. To avoid stumbling, focus less on the big picture and more on thoroughly explaining what the new plan means for employees and their families. Rather than mention the “millions of dollars” spent on health care, explain the company’s investment in healthcare and the dollars added to each individual employee’s salary in the form of medical benefits. Provide examples and simple profiles to show how the plans work and their value. In-person (or virtual) meetings are also helpful. Don’t just pile on the print materials and expect employees to dig through it all.
- Access. Employee spouses and/or families are often the healthcare decision-makers. Be sure to get the information they need to them in a form they can access. Don’t keep valuable benefits information locked up behind a hard-to-access firewall.
Ongoing Support
- Remind and promote. You can’t have an “if we build it, they will come” mindset. Employees and their families must be constantly reminded about what they need to do, how to manage their accounts, and the available resources and why they should use them. Provide easy-to-use tips and checklists so employees know how to take that next step. Promoting key resources like personal health advisers or nurse lines, online tools and preventive care can also make a big difference.
- Simplify. Simplify all the overlapping programs, such as preventive care, health coaches, and disease management, and keep ongoing communication simple and action-oriented.
- Monitor. Keep an eye on vendors for their claims processing and customer service. Nothing can derail a CDHC faster than major complaints about claims being paid incorrectly or frustrations over doctors’ bills.
Benz Communications is a human resources communications strategy boutique creating integrated employee benefits communications programs that increase employee understanding, engagement, and satisfaction, and enhance employee recruitment and retention. Its clients include Fortune 500 companies, Fortune 100 Best Companies to Work For, and small- to mid-size companies. Additional information about Benz Communications may be found at www.benzcommunications.com.