Don’t Miss the Warning Signs: The Cost of Inaction
Don’t miss the warning signs: the cost of inaction in benefits. Imagine your employee benefits program as the foundation of a well-built structure. When well maintained and monitored, the structure stands strong, but when small cracks are noticed and not repaired, they can widen, causing catastrophic damage. As an employer, neglecting important details about your benefits plan can end up costing both you—and your employees—much more than you realize.
Recently, we had the opportunity to consult with a client who had a traditional Blue Cross Blue Shield plan. They were struggling to gain access to the plan’s performance to identify areas of improvement, and just like finding cracks in a foundation is crucial to maintaining a building's stability, understanding critical details about your plan is essential—whether that means discovering gaps in coverage, identifying areas of underutilization, or uncovering insufficient plan design.
Uncover the cracks.
With the use of advanced technology, Conner Insurance was able to extensively explore the program and access specific information on medical diagnosis and prescription drugs. This highlighted two members of the plan who were on specialty medications costing $150,000 each. That’s $300,000 in costs being absorbed by the plan. Not only is this troublesome for the business, it could raise premiums for the entire workforce and place an extreme amount of pressure on the patients who need the medication.
We immediately began to strategize ways to partially reduce—if not remove completely—these high costs. The solutions needed to be minimally invasive to members, ensuring the patient’s protocol–including the prescription medication–was not disrupted. However, when various options were presented, the decision was made to leave things as they were.
The cost of inaction.
Despite the clear financial impact, no action was taken by the company. By ignoring these clear signals that changes are needed—small cracks made visible in the wall—the company and employees will continue to lose money unnecessarily. What’s worse, those involved in the final decision are leaving themselves at risk of legal consequences.
As an employer, it’s crucial to recognize that inaction can have serious ramifications. If you receive information that suggests inefficiencies or misalignments in your benefits plan, ignoring it could leave you in a vulnerable position. As an employer, you have a fiduciary responsibility to act in the best interest of your employees when it comes to their benefits. Not taking action when clear opportunities for improvement are presented could lead to severe penalties for not fulfilling your duty of care.
This doesn’t mean you need to make drastic changes overnight. But it does mean you should be proactive in reviewing your benefits plan regularly, utilizing the right tools to assess your current situation, and making changes where necessary to protect both the company’s economic health and your employee’s well-being.
Don’t let a crack break the foundation.
If you're an employer and receive information that could offer more transparency or highlight misalignments within your benefits plan, don’t ignore it. Take the time to review it. Consult with a benefits specialist and take necessary action–before the cracks widen. The cost of inaction could be much higher than the cost of taking action.
Be proactive, protect your organization, and ensure that your benefits plan serves both your employees and your business efficiently. If you have questions about your fiduciary responsibility or need to access important information about your benefits program, reach out today. We’re here to help.