Educating Employees
Invest some time educating employees and save yourself 10%!
How do you help keep group insurance premiums down? Focus on healthcare, the area most prone to large increases, and encourage your employees to take responsibility for the way they use their plan. That's the message Canadians can take from a 2004 study of US group benefits programs.
Companies with the best track record educating employees typically saw a 7 percent premium increase. Companies facing higher increases - a medium of 17% - did less to help workers make cost-effective health care decisions.
The 10% difference is hard to ignore. Employers who ensure employees understand how coverage works best for the long term are reaping the rewards.
Successful plans include features like deductibles and co-payments. These directly involve employees in every purchase, reminding them to ensure each purchase is appropriate.
These same features can also encourage what the medical community call �compliance� -- patients who follow the doctor's instruction, like taking medications for the full period prescribed, not just until the patient initially feels better. This kind of smart consumer behavior helps ensure the treatment is successful, and avoids repeat visits to the doctor to start the treatment process over again� often with a new prescription.
Ideally, employers and employees should see themselves partners in a benefit program. While the insurance company is there to provide a safety net in case of catastrophe, you should approach day to day claims as though you're spending your own money. That will keep your benefit program affordable for the long run.
