Benefits costs are rising, making the U.S. labor market more expensive for large-scale operations. Employers are looking for cost-management tactics, leading many to shift more of their financial burden to employees. Employee financial stress, however, is now draining engagement and productivity — so, are there better strategies?
In a recent survey, Aberdeen found that the number of Best-in-Class companies implementing a strategy for health plan diversity increased by 43% from 2017 to 2018 (30% vs. 21%). In the same survey, however, the Best-in-Class were 36% more likely than All Others (30% vs. 22%) to find that plan diversity increased benefits management complexity, leading to increased HR headcounts at open enrollment, more time needed for claims management, and a tougher time for future rate negotiations with insurers based on known employee health requirements.