Healthcare costs in America have risen significantly since the 1970s, leading many employers to expect modest yearly cost increases in the benefits they offer. However, current economic conditions, an aging population, and increased costs related to managing chronic conditions have led to less manageable increases for many employers.
Here are five ways TPAs can help employers continue offering high-value benefits while working to control rising benefits costs.
#1 Ask Participants What They Need
Before considering additional healthcare options, employers should ask their employees about their current benefits package and needs. For example, some companies seeking to lower premiums may consider adding a high-deductible health plan (HDHP) coupled with Health Savings Accounts (HSAs). However, polls of their employees may reveal that they would prefer the flexibility offered by an Individual Coverage Health Reimbursement Account (ICHRA), which can also reduce employer costs. After employees select an individual plan using ICHRA premium assistance, they can still be given the option to enroll in an employer-sponsored HSA or Flexible Spending Account (FSA), depending on the coverage they have chosen.
#2 Learn About Potential Upcoming Status Changes
In addition to determining current needs, workforce demographics should be explored. Are a significant number of workers nearing 65? They will become eligible for Medicare at that age, which could affect the viability of offering an HDHP-HSA option. Are most employees in age ranges where family expansion (through marriage, birth, or adoption) likely influences their benefit needs? The life stages in which employees fall can help guide the selection of additional or alternative benefits programs.
#3 Educate Participants for Effective Usage
Employees who don’t completely understand how their benefits work are unlikely to maximize their use. TPAs can help by providing educational materials in multiple mediums (print, video, web, etc.). This can dramatically improve employee satisfaction with their benefit programs.
#4 Keep the Communication Going Year-Round
The need for employee education doesn’t end with the enrollment period. Year-round communication about employee benefit features, advantages, and usage is essential for ongoing satisfaction and planning and adoption for the next plan year.
#5 Offer Valuable Benefits With Low Employer Costs
TPAs can offer several high-value benefit options that cost little to the employer. Prime examples include health and dependent care FSA and HSA accounts, which provide substantial tax benefits to the employees who adopt them and remove the employer’s FICA matching expense on employee set-aside amounts. Lifestyle spending accounts (LSAs), although funded entirely by the employer, can also be a considerable source of employee benefit and satisfaction at a relatively low cost.
TPAs Can Help Employers Make This Work
Employers want and need TPA expertise to help them create affordable benefits packages that their employees will find valuable. You can offer many resources to help employers control rising benefits costs while supporting their employees’ needs.