Your Benefit Promise (Benefit Tips ® - © 2015)
What commitment are you communicating with your benefit plan design? For decades the message has been, “Don’t worry, we’ll take care of you.” But the tension between private sector innovation and government health plan cost cutting leaves employers increasingly vulnerable.
Cost shifting and medical advancements have left employers vulnerable. Open-ended commitments result in claims that no one anticipated. Group insurers aren’t much help since they change their rates annually based on actual and anticipated claims. So if you have a high claimant then you will pay for it yourself in the renewal rates
You can limit your commitment by explaining what is not covered or by putting maximums on what is covered. There is integrity in knowing your boundaries. First decide on exactly what support you wish to provide employees and their families and then limit your exposure to that.