Change can be intimidating, especially in an industry that so strongly resists it. Working with the right advisor can be crucial in helping you feel satisfied with your new plan. (Photo: Shutterstock)
Changing the norm can be scary in any industry. In health care, however, it's practically unwelcome. Business owners have continuously accepted the norm in benefits spending, paying more every year without seeing a noticeable increase in the quality of their benefits. This practice would be swiftly rejected in any other industry, but many business owners are more comfortable continuing to waste money on ineffective plans than saving money by changing the way they handle their benefits plan.
If you're unhappy with your current plan, but hesitant to try something new, you need to open your mind to big changes for your plan.
Health insurance costs have been steadily rising for years now, even as the quality of benefits employers receive stays the same or even decreases. Benefits are already one of the largest expenses for most businesses as it is, and if their costs continue to increase by 5 or 6 percent (as they have in recent years), employers will have to find a better solution or risk being run out of business by unaffordable benefits.
Many business owners, however, prefer to deal with the so-called “devil they know” than risk the potential consequences of big changes in their plan. By working with an advisor who offers innovative solutions to the problems associated with status-quo benefits plans, you can put yourself ahead of the competition while avoiding the dreaded annual cost increases that come with most of today's benefits plans. You'll just need to be open to the idea of change.
|A plan your employees can use
A benefits plan that looks great on paper but is unaffordable to your employees is not a great plan at all. Many employers have been led to believe that the plans their brokers are selling them are designed with their employees in mind. In reality, though, many employees may be unable to use any of their plan due to:
- Low savings – In 2017, GoBankingRates found that over half of Americans have less than $1,000 in savings. With not much money left for emergencies, many employees may be unwilling to take time off work or pay for doctor's appointments.
- High deductibles – Even if their plan covers everything, workers often still need to pay thousands of dollars toward their deductible before their insurance starts to pay for their healthcare. With almost 40 percent of Americans having $0 in savings, a $3,000 deductible can be completely unaffordable.
- Costly prescription drugs – A plan that doesn't completely cover your employees' medication can leave them hurting for money. A drug that costs $60 a week will take over $3,000 out of your employee's funds by the end of the year, and many people may choose to simply forego or ration their medication instead.
Building a plan that serves your employees can require making some big alterations in your existing plan. But ultimately, you'll be rewarded with a much happier and healthier workforce if you're willing to take the leap.
|One step at a time
A great advisor won't force you to make a bunch of big changes right from the start. Instead, they'll ease you into your new plan step by step, taking the time to explain your options and answer your questions. They'll work to understand your company's unique needs and learn more from you to figure out how to help you achieve your goals for the business. Some big changes will likely be necessary if you want dramatic results, but your advisor should be there with you every step of the way to ensure that you're comfortable with the decisions you're making for your plan. Change can be intimidating, especially in an industry that so strongly resists it, so working with the right advisor can be crucial in helping you feel satisfied with your new plan.
Your benefits plan won't be completely transformed overnight. Even big changes take time to implement, but if you're willing to begin the process and work with a patient and understanding advisor, you can shrug off the status quo cost increases and end up with a flourishing business and satisfied employees.
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