5 low-cost ways to enhance health benefits for 2022

Health benefit costs are set to go up again next year due to inflation, rising health care consumption post-2020, and the high cost to retain physicians and nurses in the midst of the ongoing pandemic, among other factors. Benefit advisors, employers, and carriers need smart strategies to continue delivering valuable health benefits to help retain workers while also protecting the bottom line.

Meanwhile, employees have been stretched by years of premium and cost-sharing increases. Research shows that 60% of Americans would have to borrow to cover an unexpected $1,000 expense, yet the average worker with employer-sponsored health insurance has a deductible of $1,644. Those on high deductible plans are even more exposed to the cost of a health issue.

In the hopes of building a world where health hardships don’t create financial hardships, we have been interviewing leaders across the industry and collaborating with advisors and employers to find new ways to enhance health benefits in this challenging environment.

Here are five road-tested tactics to help enhance health benefits while containing costs:

1. Personalize plan offerings—One size no longer fits all. Workforce expert Lindsay Pollack reminds us that today’s workforce is home to five generations working side by side. Design health benefit packages that are tailored to the needs of different groups within the organization. Consider conducting confidential interviews with employees across the team to understand what they value most, what keeps them up at night, and what they want out of their health benefits. Use these insights to redesign plan options and cut out features the team doesn’t value.
2. Fund a supplemental health plan—You may find that many workers are already dangerously exposed to high medical bills if they were to have a serious health issue during the year. HSA savings take time to accumulate, and often never reach a high enough balance to offset out-of-pocket expenses. Add more dollars to the picture with a supplemental plan that pays a lump sum if an employee gets sick or injured. Look for a plan with wide ranging coverage and an easy claims process so the team can rest easy knowing they’ll have extra coverage if something happens.
3. Stop investing in under-utilized benefits—The health benefit is the most mission critical of all the benefits offered. You may find extra benefit dollars for health benefits if you take a hard look at benefits that were only utilized by a few employees in the past several years. It may be worth disappointing the few who used those ancillary benefits in order to make the health benefit offering more robust for everyone.
4. Embrace digital health solutions—The pandemic has dramatically accelerated consumer adoption of telehealth solutions that cut the travel time and exposure out of seeing a health care provider. New providers such as Eden Health, Maven, Ginger, and Hinge are delivering primary care, women’s health, mental health care, and even physical therapy to employees at home, saving time and money along the way.
5. Boost benefit literacy—It’s a shame for employees to miss the value of their health plan simply because they don’t understand them and often choose the wrong plan. Data shows that the vast majority of employees over buy health coverage, and we know that low health benefit literacy can result in under-utilized preventive care and higher hospitalization rates, so it’s worth it to spend time and energy coaching employees through their elections during open enrollment and checking in with them throughout the year.

Veer Gidwaney is the Founder and CEO of Brella Insurance. Previously, he was Co-founder and CEO of Maxwell Health, which was acquired by Sun Life in 2018.  Veer is a proven entrepreneur and insurance innovator whose energy and experience have long been devoted to solving the problems of our time. Veer lives with his family in the greater New York City area.