As healthcare insurance costs continue to skyrocket, benefit administrators are searching for ways stop the bleeding from company coffers while still offering employees affordable coverage options. This frequently results in a company changing insurance carriers every couple of years. The result has been employees are often asked to choose from an ever increasing array of completely different, and wide ranging healthcare plan choices.
HMO, PPO, HSA, HRA, PCP, in network, out of network, formulary, co-pay, deductibles, etc., there are now so many choices and considerations that effectively communicating information so employees can make informed decisions is the top open enrollment challenge HR administrators face today.
Simply put, the more choices, the more information needs to be communicated to employees. You would think that given the importance to both the personal bank account and the welfare of ourselves and our dependents that taking the time to read and understand HR provided healthcare benefit info would be a priority during the open enrollment period. Guess again.
Most employees - 63% - spend 30 minutes or less to make benefits decisions, and spend about 0.8 hours to research their options before buying - compared to 6.8 hours for a car and 1.3 for shoes (source: MetLife).