Developing Long Term Strategies that Matter for Benefits Management
In the ever-changing healthcare landscape, it is crucial to develop sustainable long-term strategies that look beyond immediate cost savings.
As consultants, our mission is not only to identify financial efficiencies but also to create strategic frameworks that prioritize the well-being of both employers and employees. Our focus has shifted from simply reducing costs to designing innovative and comprehensive benefit packages that promote employee retention and attraction amidst evolving market demands.
Navigating Post-COVID Challenges
Now that the dust has settled post-COVID-19, employers face the challenge of rebuilding trust and reassessing their commitment to employee welfare. Many have had to make difficult decisions, such as reducing salaries or work hours to sustain operations while ensuring employee well-being. This period of adaptation requires a reevaluation of benefit packages, with employers seeking creative solutions to maintain cost-effective health benefits and enhance overall employee offerings. Initiatives like discount programs, worksite benefits and personalized enrollment assistance have emerged as strategies to empower employees and support their diverse needs.
Addressing Healthcare Cost Trends for 2024
As consultants, our task is to find creative and cost-effective options. Healthcare cost trends for 2024 are expected to increase by 5 to 8.5% as mentioned in the September 14, 2023 Segal article What are the Projected 2024 Health Plan Cost Trends?, as well as in a variety of surveys posted on the Society for Human Resource Management (SHRM) website under Topics & Tools addressing Health Care Costs for 2024.
While these increases are necessary, there are several ways to address creativity and choice. This includes reviewing funding types and educating employers on the difference between fully insured plans, level funding, and self-insured options. Analyzing claims data and determining when cost-saving plan alternatives are most suitable for each employer group is also important. In some cases, taking on that claim risk can positively impact the bottom line.
Special Considerations: GLP-1 Drugs and Cost Management
Although fully insured plans may seem like the simplest choice, they are not always the best option. Some employer groups with larger enrollment populations have opted for self-funding their medical plans.
With the increasing popularity of GLP-1 drugs for weight loss, it’s crucial to have a trusted advisor that can guide you through claims reporting to help find ways to tailor your medical contracts.
Examples of these types of prescription medications can be located on the GoodRx website: goodrx.com/classes/glp-1-agonists/ glp-1-drugs-comparison as well as on the U.S. Food & Drug Administration (FDA) website under medications containing semaglutide marketed for type-2 diabetes and weight loss: fda.gov/ drugs/postmarket-drug-safety-information- patients-and-providers/ medications-containing-semaglutide- marketed-type-2-diabetes- or-weight-loss In the case of GLP-1 drugs, understanding your prescription drug claims is essential. On a self-funded platform, you have the choice and flexibility to build your contract.
While primarily used for diabetes, GLP-1 drugs taken for weight loss can create a huge expense. Adding measures like pre-authorizations and prerequisite treatment options for weight loss can help employer groups control costs.
Partnering for Sustainable Benefits
Ultimately, our role as consultants is to be a trusted advisor, guiding our clients in making informed choices and serving as an extension of their human resources team. We are there to answer questions for not only the employer but the employees as well. We offer assistance and expertise, acting as the liaison between our clients and carrier partners to negotiate plan costs and provide choice. Developing long-lasting partnerships is crucial to effectively implement long-term strategies that truly matter.
In conclusion, achieving sustainable benefit strategies requires proactive adaptation and strategic foresight. As consultants, we are committed to guiding organizations through these complexities, leveraging our expertise to tailor solutions that align with their unique objectives. By fostering collaborative partnerships and prioritizing employee-centric innovations, we pave the way for enduring success in an increasingly competitive business environment.
For organizations seeking to navigate the intricacies of benefit strategy optimization, Marsh McLennan Agency stands ready to provide customized guidance and strategic support. Explore further insights and resources on Mercer’s website where you can find the 2024 Benefit Strategies Report (mercer.com) to embark on a journey towards sustainable and impactful benefits management.
-Marsh McLennan Agency (MMA) provides business insurance, employee health and benefits, retirement, and private client insurance solutions to organizations and individuals seeking limitless possibilities, aided by over 11,000 colleagues in 200 offices across North America.