How benefits brokers can improve workforce wellbeing this open enrollment

For most Americans, November means football, friends, and family. But, for benefits brokers, November is notable for another reason…Open Enrollment.

For months, benefits brokers have been working behind-the-scenes with clients to help build tailored benefits plans that meet employees’ needs. While every year presents unique challenges when thinking through how to build optimal offerings, the stakes have never been higher—new research from Guardian’s Mind, Body, and Wallet™ report found that employee wellbeing has hit a 12-year low.

For employees, the primary contributor to that wellbeing decline has been economic and personal finance- related concerns, from overall economic uncertainty to inflation and paying off debt. These stressors are subsequently impacting employee mental and physical health, which collectively influence total wellbeing.

There is no magic solution that will singlehandedly reverse these negative trends. It will take a multi-pronged approach. However, this Open Enrollment season, benefits brokers have a unique opportunity to help contribute to such turnaround efforts by supporting employee benefits education and communications—positioning themselves as a trusted advisor to clients in the process.

How supplemental health insurance can support financial wellbeing

At the same time workplace wellbeing scores are dropping, the cost of health care is increasing. As employers and employees alike deal with this double whammy, benefits brokers have increasingly advised their clients on the benefits of offering supplemental health insurance.

Whether Accident, Critical Illness or Hospital Indemnity Insurance plans, many employers have taken benefits brokers up on this advice—with Guardian’s Benefits Optimization report finding that 52% of employers now offer at least one supplemental health insurance benefit. The catch, as most benefits brokers know, is that offering such coverage is only the tip of the iceberg.

This represents the first opportunity for benefits brokers to help contribute to workplace wellbeing improvement: enhanced employee education on supplemental health insurance.

Put simply, without education efforts, enrollment in supplemental health insurance will remain low. That means employees can’t tap into the financial protections offered to alleviate the financial stress of having a serious illness. This subsequently underscores why benefits brokers should lead with financial wellness when advising on education efforts.

There are several ways benefits brokers can suggest emphasizing this message. One strategy is to contextualize the average cost of purchasing supplemental health insurance (about the cost of a pizza). A second is to showcase how supplemental health insurance can help cover expenses that would typically not be covered by traditional medical insurance—no matter how comprehensive someone’s plan is (think reimbursement for childcare costs or rent and mortgage). Finally, a third option is to highlight how supplemental health insurance’s lump sum payment is issued directly to employees, for them to use however they see fit.

Regardless, it comes down to this: 61% of workers who own a supplemental health insurance benefit report high financial health. Further, those who own supplemental health insurance are 25% more likely to report high overall wellbeing, as compared to those who don’t. With financial wellness both top-of-mind for employees and playing an outsized role in influencing total health, the financial protections available through supplemental health insurance is where benefits brokers should advise employers to focus.

Communicating effectively

As mentioned, simply offering supplemental health insurance to employees does not automatically mean that employees will enroll. Case in point: despite the upward trend in availability, Guardian found that approximately half of employees still don’t own any supplemental health insurance.

What’s driving this discrepancy between availability and purchase rate? Communication, or a lack thereof. When asked about how effectively employers communicate about available benefits and how to use them, just 39% of employees said their employer does a good job.

This mismatch presents the second opportunity for benefits brokers: help employers build more effective communication plans.

In looking to do so, there are a few foundational principles from which benefits brokers can draw to advise clients.

1. Identify their target audience. If they don’t already, benefits brokers should advise employers to get a deeper understanding of their employee population. It’s not just names and titles, but rather getting a sense of ages, life stages, number of dependents, and geographies.
2. Meet employees where they are. Using the results of their employee audit, encourage employers to engage with their employees in the channels and mediums that resonate with them. Have a younger employee audience? Bite-size DIY video content can be great. For a population with dependents or caregiving responsibilities, consider offering in-person or 1:1 benefits consultations.
3. Make it personal. While benefits brokers can opine on insurance all day long, the most powerful advocates for supplemental health insurance are colleagues’ peers. Peer-to-peer stories can help demonstrate the real-world value of supplemental health insurance, making it tangible and relatable. In thinking through how to mine for these stories, benefits brokers should encourage employers to partner with HR to identify employees who might have just come back for leave or had a relevant life experience. Most importantly, remember that not everyone will want to share, and no one should be forced to do so.
4. Focus on the holistic offering. Most employees understand the basic premise of how insurance works—you get sick, file a claim, and then get paid. But many don’t know that insurance like supplemental health may also include coverage for preventive testing. Whether that’s BRCA1 or BRCA2 genetic screening or fertility testing, benefits brokers should advise on the importance of communicating around the whole benefit.
5. Leverage available resources. Employers have enough on their plate when it comes to Open Enrollment, let alone day-to-day business operations. To help, benefits brokers should encourage employers to tap into enrollment resources provided by their carrier—who are ready and willing to assist! Whether that’s pre-drafted omnichannel communication materials for employees, digital decision support tools, or benefits counseling, most of these capabilities are free to employers and can be deployed quickly to support active Open Enrollment efforts.

For benefits brokers advising employers, the most important thing to remember is that these communication efforts don’t have to be a heavy lift. Whether it is simply optimizing existing efforts or focusing on one or two new tactics, enrollment rates can only improve.

Supporting benefits year-round

For benefits brokers, Open Enrollment is high season and it can be tempting to step back in the weeks and months after.

Related: Kick off open enrollment the right way

But, in the pursuit of being a trusted partner, a benefits broker’s work is not done when Open Enrollment ends. Rather, those looking to provide the most value to their clients will help them understand the importance of focusing on supplemental health insurance and employee benefits year-round.

We know that it takes hearing a message multiple times for it to truly resonate. Given the pressing financial concerns facing American workers, employers need education and communication efforts about supplemental health insurance to stick. Fortunately, whether that is encouraging employers to leverage various awareness months, quarterly town halls or regular HR efforts, and coupled with enhanced education and communication efforts, benefits brokers are uniquely positioned to help ensure it does—and improve workplace wellbeing in the process.

Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, medical or financial advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, medical or financial advice. Consult your tax, legal, medical or financial professional regarding your individual situation.

Guardian® is a registered trademark of The Guardian Life Insurance Company of America® and it is used with express permission .

Rachel Chamberlin, Head of Group Benefits Enrollment and Jessica Vanscavish, Head of Disability, Absence, Life and Supplemental Health Product Management at Guardian