Smart Benefits: Plan Choice Key for Employers

Sunday, May 11, 2014

Amy Gallagher, GoLocalWorcester Business/Health Expert

What’s top of mind for employers post-renewal this year? While employers are still concerned about cost, they’re paying more attention to plan choice for employees than ever before.

Choice can Cut Costs

Offering plan choice gives employees more control of their wallet. But they’re not the only ones who can benefit. Employers may save, too. That’s because employees who choose lower cost plans help their employer at the same time. And if employees buy up to more costly plans, they pay the difference, not the employer.

Why the Sudden Shift?

Larger employers have offered a choice of plans for some time. But mid-size and smaller employers are now following suit by adding options for employees.

Part of the reason may be the recent media coverage on the public and private exchanges, which has increased visibility around the topic of issue of choice.

Plus, insurance carriers who previously restricted plan choices are being more flexible. In Rhode Island, two of the major insurance carriers in the market now allow employers the choice of three to four plans, which enables companies to offer multiple plans to appeal to a wider level of employee lifestyles and needs.

Savings Start with Selection

There are many ways for employees to save money on health insurance, from selecting a Health Savings Account to choosing a limited network plan. But remember: the employer has to offer the choice for employees in order to reap the benefits.

Amy Gallagher has over 21 years of healthcare industry experience guiding employers and employees. As Vice President at Cornerstone Group, she advises large employers on all aspects of healthcare reform, benefit solutions, cost-containment strategies and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, and is often quoted by national publications on the subject matter. Locally, Amy is a member of SHRM-RI, the Rhode Island Business Group on Health, and the Rhode Island Business Healthcare Advisory Council.