3 strategies to encourage wiser benefit selection

Part of our job as benefits professionals is to try and make health care as easy as possible for our clients and their members. Today members face an increasingly complex and expensive health care system, and making informed financial choices is more important than ever.

The U.S. National Center for Disease Control conducted a study of patient behavior in 2015 and found that nine percent of U.S. adults delayed or skipped medical care due to cost. What’s more, U.S. per capita health spending in 2016 rose to $10,348, per research from the Kaiser Family Foundation. For comparison, that number was just $4,855 in 2000. Adjusted for inflation, that comes out to $6,471 in 2016 dollars, or a real world increase of $3,877 per capita.

Related: As costs rise, employers drive change in health care delivery

Sadly, history tells us that costs are unlikely to halt their year-over-year increases. As a result, we should continue to see consumers, including those with health insurance, avoid seeking health care over fears of their out-of-pocket costs.

Here’s some good news. Brokers and consultants are positioned to assist clients in empowering their members to make wiser financial decisions regarding health care, and to educate members on the best ways to utilize their health benefits. When helping clients plan their member communications strategies, keep these three approaches in mind:

1. Make it relevant

To demystify the perceived complexities associated with health care and alleviate member anxiety, it is important to understand how health care decisions impact a member’s finances. Modern digital engagement tools, such as videos, FAQs and other education materials are effective tools for demonstrating to members how their benefits work and how to understand the financial aspects of health care. And personalizing communications to members will increase their relevancy and improve the chances that they will ultimately use these tools. Coordinate with the client to determine how best to reach members. Is it through targeted text messages, email, or some other means? What’s most important is that you get the conversation started.

When you do reach members, the information must be relevant and useful. If, for example, the members are on a High Deductible Health Plan (HDHP), speak to the plan’s structure, costs, whether or not a Health Savings Account (HSA) is available. If the client uses a Preferred Provider Organization (PPO), explain the importance of staying in-network, or how beneficial it is to shop around under reference-based pricing plans.

A 2016 survey from HealthMine reported that 70 percent of health care consumers don’t do any kind of price shopping when it comes to health care, and 25 percent of those consumers say they don’t price shop because they either don’t know how or find it too difficult and/or time consuming. Educating members about costs can help to remove much of the anxiety that keeps members from using their benefits. And showing them how to price shop is just one example of how relevant, personal, communications can help consumers to make better financial decisions about their health care.

2. Remember: members are consumers

Once you have members’ attention, make sure you’re ready to give them a persuasive sales pitch. Why, for example, should members enroll in a telemedicine program rather than just visit the emergency room for minor illnesses? Let members know how much money they’ll save with telemedicine, show them a helpful video explaining the benefits of different types of providers, or share promotional materials from the vendor.

Don’t just assume that members understand their health benefit options or that they have a grasp on what benefits they already have. Consider the member’s concerns, and then build a message that answers the question “how so these benefits help the member?”

If unexpected expenses are giving members anxiety, tell them about their on-demand payroll access, and how it’s a much better deal than a payday loan. Take members through all the benefits they have access to, such as cost and quality transparency tools, financial well-being tools, and myriad other products which can address their specific needs. Get ready to counter skepticism, inertia, and a preference for the status quo among members, just like you would for any other population of consumers.

3. Empower with powerful tools

To help members make wise, informed financial decisions regarding their health care, we need to empower them with useful tools and information. A health savings account (HSA), for example, can give members a financial reserve and protection from unexpected costs, giving members the breathing room to make thoughtful decisions for themselves. Payment consolidation and management products like Simplicity allow members to spread out qualified, in-network expenses over 12 monthly, interest-free payments.

Meanwhile, cost and quality transparency tools such as Healthcare Bluebook give members unprecedented levels of information on how relatively expensive different providers are, versus the market average, so they can better weigh the pros and cons of given providers. These are just a few of the tools we can use to empower members and give them the confidence to make the best possible choices for themselves and their families’ well-being.

Ultimately, health care industry professionals like us must stay informed and ahead of the curve so that we can help our members navigate the industry in confidence and better financial safety.

Dave Kapustka is a director at CoreSource. He has over a decade of experience in the benefits administration industry and is currently based in the Midwest.