As an employer, choosing the right health insurance plan for your employees is important for attracting talent and saving costs. When deciding on what coverage best meets the needs of your employee group, it helps to analyze relevant data, like where and how money is being spent and what you and your employees risks are — in addition to premium costs.
The following questions can help you gain insights that will help you design the plan that works for you:
How do our employees utilize health care?
Finding out what services your employee group has used in the past is a good indicator of what they’ll use in the future. The Society for Human Resources Management (SHRM) recommends reviewing your employee utilization data along with broader market data, to understand how your employee population compares to others. Utilization rates give you an idea of disease prevalence, employee preferences for alternative treatments, ways they access care and more. Websites from the Centers for Medicare and Medicaid Services (CMS) and FAIR Health offer databases to help you find a wealth of information.
What are our self-insured reimbursement risks?
More and more companies are looking to self-insurance for their solution to healthcare. With self-insurance, your organization takes on a certain amount of financial risk for high medical costs. An insurance broker can help you understand the different types of reimbursement models available and decide on the most responsible plan design for your organization.
What are our costs per capita?
Your insurer can give you information on your annual health care expenditures per employee for various medical services. This data can help you understand important trends in your healthcare costs, according to SHRM. Understanding of the costs that you’ve been responsible for can help you design a plan that is customized to the unique needs of your employee group.
How do I find the right broker or agent?
An insurance broker or agent can help you find the right coverage for you and your employees. A broker is free to compare plans from several insurance providers, while an agent works for one company or product. It’s important to get recommendations for a broker or an agent, by asking for referrals from businesses that are similar to yours in size and industry. A broker can help you select a plan in addition to guiding your workforce through the enrollment process and beyond.
Finding the plan that is right for your employees can help you attract and retain top workers and save you from unnecessary spending. Asking yourself where and how to spend on healthcare can help you find the plan that works you.