Choice Overload and Your Benefits Program

Choice overload and your benefits program. The pressure to provide a cost-effective, comprehensive healthcare program to attract and retain top talent is something that employers strive to accomplish in today’s competitive labor market. Yet the desire to create a benefits program that appeals to everyone could actually have the opposite effect.

Too many choices can distract someone from selecting what they really want or need. Whether you’re trying to decide what you want for dinner or what brand of TV to buy, excessive options can cause a delay in choice, or even avoidance of a decision altogether. To alleviate this issue, we often limit the choice or narrow the options. For example, going from ten dinner options to four or turning to reviews to help choose between the top three TV brands.

The same can be true for your employee benefits. When the list of healthcare options becomes too long, some employees may begin to choose compromise options or worse, put off their care indefinitely.

Regardless of the plan— employees need a navigation solution to help reduce choice overload.

Benefit decision paralysis is a concept thought to be caused by excessive choices within benefits, which can lead to poor wellbeing and excess stress. Research with 401K retirement plans showed that as the number of 401K options rose, employee participation rate fell. Data from approximately 800,000 employees was used to confirm that participation in 401K plans is higher when employees are offered fewer options, as compared to plans offering ten or more.

When decisions become high stakes, such as those that involve money or health, the stress of decision-making can increase and even further impair choice. Healthcare coverage can greatly impact financial security and health, creating the ideal environment for decision paralysis and causing some employees to take the easiest option, instead of the best one.

Simplify employee benefits with solutions that work.

Due to the complexity of the healthcare system and because everyone’s health journey is unique to them, relying on online reviews or the opinions of family and friends is not always feasible.  

Fortunately, solutions are available. Care navigation tools and resources can help employees make informed decisions, helping them access care they need, when they need it. Whether employees are looking for a primary care physician or need a low-cost option for a procedure, navigation tools can help manage their healthcare needs.

The benefits of care navigation tools:

• Lowers costs. Employees who don’t understand where to go for care may choose higher-cost care options, without realizing it. For example, going to the same hospital for procedures as the prescribing provider can feel like the only option, instead of finding a lower-cost, potentially higher-quality, facility. Also, emergency room visits can cost more than an outpatient urgent care facility. If employees don’t know where to find urgent care, for example, if they are new to the city, they may choose to go to the ER for treatment.

• Improve health outcomes. Employees who don’t understand their benefits could avoid or delay care, leading to worsening health outcomes. A care navigation tool can help guide employees by prompting them when preventive screenings are due, and then suggest appointments at high-quality, low-cost facilities and offices. The same process can help those employees who may delay health screenings due to uncertainty or lack of time.

• Reduce decision paralysis. Care navigation tools can provide information to employees to help them get the care they need. Whether they are looking for a specialist, a close family doctor or a lower-cost option, a plan-friendly tool can guide employees, helping them make appropriate decisions for their health.

• Improve satisfaction. Employees can become overwhelmed with the complexity of the healthcare system which can lead to dissatisfaction in the workplace. By using a care navigation tool, employees can receive quick, personalized responses to common questions such as where to find an imaging facility or which pediatrician is located closest to home. This type of assistance can increase job satisfaction by helping employees stay informed and feel supported.

• Enhance employee recruitment. Care navigation tools can provide resources making healthcare easier to access, helping to retain top talent and attract new hires. When employees can focus on essential aspects of finding care, such as low-cost, high-quality, proximity of the facilities and more, they are more likely to be satisfied with their jobs and recommend their workplace to others.

Find affordable, superior healthcare easier.

Help reduce the consequences of choice overload. Ensure your employees have an appropriate tool to navigate their benefits so they make important decisions with confidence.

At Conner Insurance we take pride in creating an atmosphere of trust and are determined to provide our clients with the best care for their people. If you have questions about implementing helpful tools within your benefits or are concerned about choice overload, don’t hesitate to reach out.