According to research from the Society for Human Resource Management, 82 percent of organizations review their benefit programs annually — 12 percent even more frequently.
And what often follows a review? That's right — change.
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Employers look to their group benefits advisors for guidance during both the review process and any ensuing changes. As an advisor, you can ask some of the tough questions as they consider changes, which is especially important during this busy time of the year.
- How would switching to a new carrier impact employees? How many changes can employees tolerate at one time?
- Would any employees be positively or negatively affected by new and different coverage options? Has the employer thought through those impacts and what it could mean in terms of morale, productivity and retention?
- What are the contract implications of switching carriers? Are there seemingly little changes to how words are phrased in provisions that may later translate into big surprises?
- Will the level of service remain the same? If there is a reduction in service, is it worth the potential cost savings to both the employer and the employees?
- And, is now the right time for the employer to consider a change to their benefits package?
Most likely, you already have in-depth knowledge about a variety of carriers' contracts, service levels and benefit designs … and how they differ from one another. However, it's still important to be proactive as no two clients are the same. Zero in on some specific scenarios that can be particularly challenging, such as employees not actively at work, eligibility waiting periods, grandfathering, life conversion, COBRA benefits and other factors.
These are some of the most important areas to help ensure that no employees fall through the cracks if changes are made to the plan.
With the recent recession and the advent of health care reform, employers are making decisions about the benefits they offer differently today than they may have in the past, especially in balancing cost with their need to recruit and retain talent.
The value that advisors bring to the process is vast. When it comes to providing recommendations to your clients about moving to a new carrier — or not — take a moment to step back and look at the big picture. Help the employer evaluate the positives and the negatives, and if the time is right.
And, if a new carrier is the best solution, become the liaison between the old and new carrier. Provide the information needed to ensure a smooth transition for both the employer and the employees. Extra effort devoted on the front-end will help to minimize issues on the back-end, making for happier clients and a higher degree of satisfaction with their advisor — you.
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