It’s time to shake things up to meet the needs of a changing workforce
BY ALLEN WU
We’ve heard it time and time again—everything will change as a result of the COVID-19 pandemic. Every aspect of our lives was, is or will be,altered because of the events of this past year. But has that thought really sunk in and been applied to your business?
As we approach open enrollment in the fall, no longer should brokers simply go through the motions ofrenewing clients and simply asking if there are any changes that need to be made to a plan. It’s time to be innovative, think creatively and reinvigorate your selling strategy— particularly with ancillary benefits.
MEDICAL AND PHYSICAL HEALTH CHANGES
Previously, many employers simply looked at the price of ancillary benefits as a determining factor on whether to offer the product and how much to contribute to it. However, there was not as much an understanding or focus on what exactly they were paying for or the claims process associated with employees using the benefits. Now we are seeing a shift from solely focusing on price to also analyzing those “what if” scenarios, particularly regarding what a COVID-19 hospitalization or death could do to a family if it were to happen.
For example, hospital indemnity plans are supplemental insurance plans designed to pay for the costs of a hospital admission that may not be covered by other insurance.
These plans may not have been widely adopted in the past for an employer group, but now we are likely to see an increase in consideration to address the possibility of hospitalization. It’s important to work with the client to determine if they should offer it as a voluntary benefit that employees can take advantage of that does not cost anything for the employer.
Additionally, preventive and health maintenance benefits will also be top of mind this year as we see a shift in consumers becoming aware of how preventative care affects the overall body, combined with a general sense of wanting to remain healthy.Due to forced closures, for example, many consumers have not been to the dentist in over a year.
As they return for those overdue cleaning services, we can expect to see a significant increase in claims.
Currently, carriers are analyzing and making prevention-related actions, such as covering cleanings up to four times a year for dental or expanding calendar years to adapt and help consumers catch up from 2020.
Because we are likely to feel the impacts of 2020 for years to come, consider working with clients to determine how to incent members to be more proactive in their preventative care and then support it through ancillary benefits.
THE GROWING NEED FOR WORKSITE BENEFITS
While many employers are evaluating and addressing medical offerings, there is an entirely other side of an employee’s health that should be considered. This year, it is critical to begin conversations with your clients on worksite and non-medical related benefits. Ancillary benefits that are expected to grow in popularity are income protection plans as well as long-term and short-term disability coverage. Some carriers do not include COVID-19 as a critical illness or a disability that would be covered under these plans.
Others are beginning to evaluate their plans from that perspective and revising the rules around what is included and what is, not related to paying an employee that may not be able to work due to the virus. We need to consider the lingering and long-term effects this virus can have on a person’s health and the potential disabilities down line, which will directly impact these ancillary benefits.
THE MOUNTING MENTAL HEALTH CRISIS
Additionally, mental health concerns across the nation are at an all-time high. According to the 2021 State of Mental Health in America report, 19% (47.1 million) of people in the U.S. are now living with a mental health condition, a 1.5 million increase over last year’s report. Employers in California have a major advantage in this mental health battle as it is a mandate in the medical insurance offering. However, the question to ask is—is it enough? Do the employees need additional support or are there other voluntary benefits we can provide?
Unfortunately, many employees slip through the cracks and their mental health may be suffering with employers completely unaware of it, particularly over this past year. As an industry, we need to ensure we are offering support for our workforces. While Employee Assistance Programs (EAPs) in the past may have been automatically grouped with disability insurance, consider making these programs more of a conversation starter rather than an afterthought. Employers need to evaluate how these confidential counseling services can benefit employees and determine how many face-to-faceconversations their program allows an employee to have. If on average each conversation costs $0.85-$2 per person, the return on investment for the employer is really incomparable.
When opening up the conversation with the client, it is critical to examine how the employer is supporting the overall health of the workforce. Healthy employees tend to perform well, and be more productive and engaged at work. Because mental health is directly correlated to one’s overall physical health, when one deteriorates, the other is likely to follow. Employers that support both through proper traditional and ancillary benefits are driving down the cost of healthcare for the organization and likely improving the overall company performance.
HOW TO SHIFT THE CONVERSATION THIS YEAR
The key to selling benefits this year is personalization. It begins with having in-depth conversations with your clients to assess the needs and pain points of the workforce. Consider not only looking at what other companies are doing to ensure the client stays competitive and retains talent, but also ask for feedback from the employees and analyze current participation.
These conversations and analysis will illuminate the gaps in coverage and the discrepancies that may exist.
While some employers may not be able to sponsor all benefits, it’s important to factor in and discuss the return on investment for the employer. Are the voluntary benefits enough? If the employer invested a bit more and contributed to some ancillary benefits, would that create a more stable workforce? We simply can no longer go through checking the boxes, particularly after this last year. Employees want to feel heard and supported on a personal level, and customized kits based on age, pay schedule and family structure can improve the enrollment experience.
Additionally, incorporate real-world examples when discussing benefits with employee groups. By showing them examples and helping them think through those “what if” scenarios, you will have greater success in enrolling each individual with additional ancillary and voluntary benefits. Remember the key is personalization so spending time on the phone to ensure they feel cared for through their benefits will provide a great return on investment for your efforts.
Finally, with some employers heading back to the office and others remaining remote, a benefit administration system can simplify the process for conducting group presentations, having these one-on- one conversations and enrolling the workforce. Ensure you are arming yourself with the tools you need to be successful and, to that extent, the clients and employees themselves. The simpler the enrollment process can be through a centralized platform, the better to ensure an uncomplicated and less challenging experience.
As we begin to analyze how the pandemic will affect our individual health, our workplace and all aspects of our lives long term, it’s critical to ensure this analysis extends to health insurance and benefits. This year, ancillary benefits should be more top of mind as employees reflect on the past year and wonder if the impossible will become possible again. If this past year has taught us anything, it’s that we are craving human interaction, a personal touch and the need to feel supported.
As brokers, you have the opportunity to provide that care and let them know you are looking out for them and their family this year.
ALLEN WU is a non-medical sales executive at BenefitMall. The company partners with a network of 20,000 brokers and more 120 carriers to deliver employee benefits to more than 140,000 small and medium-sized businesses. For more information about BenefitMall, visit www.benefitmall.com.
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For example, hospital indemnity plans are supplemental insurance plans designed to pay for the costs of a hospital admission that may not be covered by other insurance.
These plans may not have been widely adopted in the past for an employer group, but now we are likely to see an increase in considerationto address the possibility of hospitalization. It’s important to work with the client to determine if they should offer it as a voluntary benefit that employees can take advantage of that does not cost anything for the employer.
Additionally, preventive and health maintenance benefits will also be top of mind this year as we see a shift in consumers becomingaware of how
preventative care affects the overall body, combined with a general sense of wanting to remain healthy.Due to forced closures, for example, many consumers have not been to the dentist in over a year.
As they return for those overdue cleaning
services, we can expect to see a significant increase in claims.
Currently, carriers are analyzing and making prevention- related actions, such as covering cleanings up to four times a year for dental or expanding calendar years to adapt and help consumers catch up from 2020.
Because we are likely to feel the impacts of 2020 for years to come, consider working with clients todetermine how to incent members to be more proactive in their preventative care and then support it through ancillarybenefits.
THE GROWING NEED FOR WORKSITE BENEFITS
While many employers are
evaluating and addressing medical offerings, there is an entirely other side of an employee’s health that should
be considered. This year, it is critical to begin conversations with your clients on worksite and non-medical related benefits.
Ancillary benefits that are expected to grow in popularity are income