New Communication Channels Can Help BAs Eliminate Voluntary Benefit Confusion

In today’s evolving health benefits industry, constant cuts are being made to help control costs. One area where resources are being added, however, is workplace voluntary benefits. In 2006, only 54 percent of employers offered at least one voluntary product, according to research from Eastbridge Consulting Group. By 2009, voluntary benefits were growing with 66 percent of employers offering at least one voluntary product, and, for companies with 2,000 or more employees, 87 percent offered at least one voluntary product.

Voluntary benefits are typically defined as products made available to employees through the employer, with the employee deciding whether or not to purchase the product. They have become a way for organizations to attract and retain employees, as they offer a simple and cost-effective way for employees to obtain needed benefits.

The increase in voluntary benefits offerings can be attributed to more employees valuing their benefits as a measure of job satisfaction, and more employers recognizing that better benefits equal happier employees. Voluntary benefits such as disability, life, accident, critical illness/cancer or supplemental health can be offered "à la carte” to employees, which helps create a customized plan and avoid unnecessary spending by both the employer and employee. According to Eastbridge Consulting Group research, 79 and 70 percent of employers said employee interest and cost containment, respectively, were the two most important advantages to voluntary benefits.

Voluntary benefits are a complement to a one-size-fits-all benefits package, especially when many companies are making budget cuts. When an employer cannot afford to offer a full suite of benefits, voluntary benefits can provide employees with additional health benefits, income protection, survivorship benefits and more, which can result in improved employee productivity and reduced stress.
Benefits Administrators (BAs) play an important role in informing employees of coverage offerings and how multiple benefits can work together. It is crucial that BAs be “in the know” on overall trends and new resources, including communications tools that may help them clearly explain benefits values during conversations with employees.

If BAs don't fully explore all available benefits-education tools, then employees are more likely to make uninformed coverage decisions for themselves and their families. In fact, almost 90 million Americans – 39 percent of adults – are limited in their abilities to read and understand health information, according to Adult Literacy in America’s National Adult Literacy Survey. If Americans had a better understanding of health, we could save the U.S. health care system $106 to $203 billion annually in literacy-related expenses, according to research from the Center for Health Care Strategies.  Benefits education, through clear communication, is a simple step toward effective benefits selection, lower costs and employee satisfaction.

Before BAs participate actively in benefits conversations with employees, they should have an understanding of how their workforce likes to receive communication. For example, employees at one company may be on-the-go and in need of electronic information while employees at another company might appreciate brochures or benefits podcasts they can read or listen to at home with their families. It is also important for BAs to be aware of the tools that can help educate them and, in turn, they can share the necessary resources with employees to effectively guide communication.

When BAs are informed of benefits changes, current offerings and how their employees want the information, it is time to start the conversations. While social media is often thought of as an external channel, it can also be an effective internal channel. According to data from Forrester Research, four out of five adults who are online use social media. Forrester also found that 35 percent of adults online use social media to look for information about their health and related issues. This two-way platform is ideal for benefits questions and answers between BAs and employees.

Because health benefits are a personal matter, tapping internal social media resources lets employees ask questions and share concerns with BAs in a comfortable, conversational way. This builds a trusting relationship between both parties and lets employees know there is a person to whom they can turn for advice.

To make the most of engaging with employees through social media channels, BAs should consider starting an internal blog or online forum. They should let employees know about these new available resources and allow employees to drive content on their own.  However, it is important to remember that in addition to online forums, employees still benefit from in-person discussions, especially when they are personal, one-on-one conversations.

People now expect all information to be available at their fingertips, and insurance companies are taking notice.  Thus, perhaps the fastest growing communications channel for BAs to consider is mobile Internet. When people aren't talking on their smartphones, they're using them to post updates on Facebook or Twitter and to text their friends. Mobile Internet, for the sake of benefits, allows employees to have on-the-go access to coverage information, care providers, claims processing and more.

Benefits communications and enrollment has come a long way since the “old world.” Companies used to explain health benefits through complex brochures and other types of traditional media filled with industry jargon and "legalese." Unfamiliar language is one of the main reasons employees fail to understand their health coverage.

Consumers today favor of clear, relevant messages delivered through new, engaging communication channels over more complex messages. As a result, helping to educate consumers about the healthcare system by removing complexities and replacing them with transparent, clear communication is increasingly important.

New communications channels are also assisting BAs by helping to educate them on employee needs and benefits offerings. BAs, in turn, provide added value to employees while also helping to lower company costs through voluntary benefits enrollment. Ultimately, these evolving communication channels are creating a more personalized care system and happier workforce because employees understand which benefits to select for their needs.

About the Author

Beth Bierbower is chief operating officer for Humana Specialty Benefits which includes dental, vision, life, disability and worksite voluntary benefits.