Value Optimization: Changing the Landscape of Employee Benefits

Value Optimization: Changing the Landscape of Employee Benefits. Employee benefits are constantly evolving, from adapting to skyrocketing healthcare costs to meeting ever-changing employee expectations. To stay ahead of the curve and accommodate constant shifts in cost and preference, employers must reevaluate their benefits and make adjustments where appropriate.

Without assessing the growth, performance and strategy of your benefits program, it may be challenging to navigate the high costs associated with health care today. A recent Mercer report shows that fully insured employees feel that if no action is taken to lower costs, their costs will rise 9% in 2025. But, it is not enough to create a program focused solely on cost-savings.

While these types of changes can produce short-term financial benefits, they often overlook employee wellbeing and engagement. Taking the time to ensure your coverage aligns with company culture and employee needs can optimize the value within your plan–and make a genuine difference in the lives of your people.

Optimize your benefits program.

Exploring creative solutions can give you a jump start to effective benefits, and more importantly, allow you to prepare for and monitor any changes caused by regulatory changes, economic pressures, and industry trends that can challenge even the most strategized programs. For example, rising healthcare costs may necessitate a reevaluation of health benefits, while new labor laws could require adjustments in compliance.

Tracking data within your plan and maintaining a clear course of action can help you determine what course to take. This year, employers have a lot to consider. As renewals begin for some and conclude for others; prioritizing value and quality takes top priority.

Change your trajectory.

A recent WTW report shows that employer's top focus areas to support affordability and employee wellbeing include: “obesity and weight management (40%), cancer and oncology (34%), cardiovascular health (28%) and women’s health (27%).” As the dynamics of employee expectations continue to evolve, embracing innovative approaches like self-funding will be key to providing value and supporting employee wellbeing.

A creative approach not only allows you to manage your healthcare dollars more effectively but also offers the ability to customize offerings to meet the needs of your people. This could mean carving out pharmacy to a specialized vendor, which can generate significant cost savings or providing retirement options for those companies that cater to an older workforce. An employer could even replicate coverage offered by current fully insured programs.

Self-funding can also provide the ability to make changes to your program more quickly than with fully insured plans, which may require lengthy negotiations with insurance carriers to adjust coverage or costs.

Help is available—every step of the way.

A knowledgeable benefits consultant can help you calculate your level of risk, design a strategy, and navigate any changes. 

Employee benefits are always evolving, driven by both rising healthcare costs and the changing expectations of the workforce. As employers navigate these challenges, it is essential to be proactive. Reevaluating and adjusting your benefits program often not only helps manage rising costs but also aligns your program with the needs of your people–a crucial element in benefits this year.

If you would like to discuss creative solutions for your benefits program don’t hesitate to reach out.