For the vast majority of employers, open enrollment season has arrived. As is the case each year, this is a time that poses a host of unique challenges for businesses, from carefully evaluating would-be plan options to bracing for the obligatory onslaught of employees that have waited until the eleventh hour to turn in their required paperwork. Throughout this busy time, there is one vital question that all employers absolutely need to ask themselves: Do my employees understand what they are signing up for?
Recently, Fidelity Investments conducted a poll whose results tend to support a case that the average worker does not. For example, only 15% of all employees surveyed stated that they had a very strong understanding of key health insurance terms. Half of the polled workers could not define a flexible spending account or a health reimbursement account, while slightly more than half did not know what a health savings account was. Furthermore, 13% actually did not know what a co-payment was. While the latter number most likely relates to the naiveties that are inherent to fresh souls brand new to the working world (at least one would like to hope this is the case), the other numbers extracted from the poll relate to products that are relatively new and exotic to the workforce compared to the programs that have been the mainstays of most benefits packages. Given the rising frequency in which employers are utilizing CDHPs, this percentile of ignorance is favored to trend upward. Obviously, this is a problem, because uneducated individuals tend to make uneducated decisions, and such poor planning may end up hurting both the employee and the employer in the future.
The main lesson that can be extrapolated from this data is how essential it is for businesses to find different ways to aggressively educate their workforce on their plans, especially if a new plan option is being launched. It is crucial that the instruction stretches beyond the ordinary parameters of merely handing out a pamphlet or two and having the workers to read through it on their own. uch materials tend to gather more dust than fingerprints when given out autonomously. Instead, find ways to actively engage the workforce in the weeks leading up to the Open Enrollment period. Hold meetings or presentations that thoroughly go over the make-up of the benefits being offered, ensuring everyone grasps the concepts of the plans firmly enough along the way so any guesswork is squelched as much as possible. If you are rolling out a new plan, such as a CDHP, survey what aspects of the plans employees find apprehensive about it and tackle those intimidating facets head-on, as such fears are most likely wrought out of a lack of plan familiarity. Emphasize the strengths of each plan, but be brutally honest with the potential drawbacks. If more traditional health coverage options like an HMO or a PPO are offered make sure that their plan information is not glossed over due to the fact that they have been around for decades. As the aforementioned survey indicates, knowledge of any plan should not be taken for granted.
The underlying purpose of these edification tactics actually end up being twofold. Not only will they improve the knowledge about benefit information amongst the workforce, but it also presents the employer with an opportunity to reiterate to the employee how valuable of an asset they are. These two effects work in synergy to maintain a workforce that is happier and (hopefully) healthier. However, neither effect will do much to expedite employees turning open enrollment paperwork in a timelier manner.
#1 by Kim D. on February 1st, 2008
Open Enrollment for many companies is at the beginning of the year. However for some it’s at the beginning of the new fiscal year such as for universities. Working in the benefits office of a major Big 10 University I have seen many scenarios played out between the GIR (group insurance rep) and the employee; both staff and faculty. The percentage of employees who are not aware of the choices they are making when it comes to their benefits, is staggering. Even though representatives from each of the insurance companies that are offered come to the campus to peddle their wares and explain in great detail what their company will do for the employee. Many do not understand what a flex spending account is, medical or dependent. These accounts can save the employee thousands per year in pre-tax dollars. This is where the GIR needs to be accessed. They can go into great detail with the employee on how the flex works and why it would benefit or perhaps not benefit the employee. Some of the most confused about their benefits and what is offered, are faculty. Those people who have the highest education on campus. Some are ignorning options open to them that would not only save them many thousands each year in pre tax dollars but would also enhance retirement accounts. Holding meetings or talks prior to each open enrollment would certainly help some people make their decisions. With having a large campus, talks would need to take place in many different areas and would need to start at least three to four months prior to the onset of open enrollment. However this would help to educate most of the employees on the campus. Of course you will always have the percentage that either are not willing to attend a seminar/talk or ones who do not find it necessary or some who just cannot find the time away from work. Bottom line: All companies and entities that offer benefits to their employees should do all they can to educate their employees regarding the choices they will eventually make.