Providing for the Future

There is increasing pressure upon employers to provide more for their employees. Jim Boyd looks at what the increasing prevalence of such programs means to providers and users.

Most employees would agree that nothing is more important to them than the financial security and health of themselves and their families. The risks of significant uncovered health expenses or loss of income due to disability or death are common concerns across all employee populations. Today’s employees have a variety of insurance needs and are pressuring their employers for worksite solutions. With limited resources to sponsor core employer subsidized benefits, companies are turning toward voluntary, employee paid programs. This shift is having a significant impact on the employee benefits marketplace with respect to the major stakeholders: employees and employers (users) and insurers, brokers, and outsourcing administration firms (providers).

The needs and demands of users (both employee and employer) are having considerable influence on products and solutions emerging in the marketplace. Employee users desire a wide range of benefit products and services that meet their individual needs and provide significant value over products available in the individual retail market; this means they want easy access to products that have been vetted for quality and provide preferred pricing and few underwriting restrictions. Employer users of voluntary benefits have many of the same product desires as employees – after all, one of the key reasons for providing such programs is to help employees achieve financial security and thereby create loyalty to their company.  However, one common objection employers have to establishing a robust voluntary benefits program is the concern of a significant administrative burden. As a result, they are looking to providers in the marketplace to shoulder the burden of the majority of administrative functions.

On the product side, insurers have responded to marketplace demands by rolling out a vast selection of benefit plans with varying features. Corporate HR departments do not have the time or resources to keep up on the newest developments. Most employers now rely on their broker as a product expert to match the best insurers and products with their specific company needs.

On the benefit administration side, there has been dramatic change over the last several years as insurers, brokers and outsourcing companies, often working in tandem, have developed solutions to streamline and simplify voluntary benefits administration. Much of the progress can be attributed to recent advancements in technology. The days of paper benefits administration are long gone. Insurers, brokers, specialty communication/enrollment firms, TPAs, and other outsourcing firms have developed technology solutions to simplify and enhance communication, enrollment, premium collection, and other key administrative aspects of voluntary benefits programs. For example, advanced technology is now used for web-based and electronic promotion and communication of benefit programs. Multiple enrolment options are now available, including face-to-face laptop enrollment, sophisticated telephonic/call center solutions and employee self-service web-based enrollment. In addition, multiple premium collection methods are available: from single slot payroll deduction for multiple products to premium collection directly from participants via credit cards, bank account debits or direct billing. Technology enhancements will continue to evolve, providing employers with even more simplified solutions and employees with expanded choices for valuable worksite voluntary benefits.

YouDecide is at the forefront of the technology wave. Our web-based voluntary benefits platform provides unparalleled flexibility for each of our clients to customize a total solution for their different employee populations, combining both voluntary benefits offerings as well as a wide array of discounts on consumer products and services. For example, active employees, part-timers, or retirees may be offered a different benefits and discounts package to meet their unique needs. One size does not fit all, and YouDecide will match the optimal mix of products and vendors to meet the specific requirements of each of our clients. In addition, YouDecide is an employee self-service solution that requires little employer administrative involvement. Simply call us to schedule a demonstration of our technology and consulting solutions.

About Jim Boyd
Jim Boyd is VP of Business Strategy at YouDecide. He has over 20 years of experience in the employee benefits field as a consultant to large clients on both core and voluntary benefits. Boyd is a Certified Employee Benefits Specialist (CEBS) and was named a Power Broker by Risk & Insurance in 2007. He can be reached at jim.boyd@youdecide.com.