The future of EAPs

As healthcare costs increase, employers are forced to watch costs, to be creative in making sure employees have coverage without breaking the proverbial bank.

We’ve seen the addition of co-pays, then deductibles – now companies are asking employees to understand a maze of self-managed money options to fund their healthcare. But how can a responsible employer help its employees help themselves? How can it ensure a healthy workforce?

HRM asked Zachary Meyer, senior vice president of Ceridian’s Health and Productivity Solutions business, to share his thoughts on how employee assistance programs (EAPs) can help.

HRM. What’s the most challenging issue facing employees today?
ZM. Honestly, I think it’s that we expect employees to understand a whole new set of rules and terminology. Think about it – do you, as an employee, know the difference between health savings accounts (HSAs) and health reimbursement accounts (HRAs)? Do you understand how much money you’ll need to set aside to cover health costs if your company moves to a consumer-driven healthcare plan (CDHP)?

Even when they are healthy, the last thing employees need is to decipher the dozens of confusing bills and statements that are piling up at home. It only makes it worse if you’re ill or under a lot of stress.

HRM. So how can employers help?
ZM. The best thing a company can do is help their employees by providing a trusted resource that they can turn to for advice. For many companies and their employees – that resource can and should be their employee assistance program (EAP). And if you don’t have one – look into one before you take a huge jump to a CDHP – it will only help your company.

HRM. Okay, but EAPs have been around a while – how are EAPs adapting to changing needs in the workforce?
ZM. While EAPs can still address issues that they were originally designed for – mental health and substance abuse – and later, financial, legal, and family care related issues, today’s EAP must gear up for the next great challenge: Helping employees navigate the ever-changing health care arena.

Employees always have questions on benefits and there will be more challenging questions in the future. Rather than direct those questions to the company’s benefits folks or to the health care plan administrators – who might have underlying motives when offering advice – we at Ceridian advocate the use of impartial EAPs.

Without any hidden agenda, EAP consultants can help employees compare benefit plans, find the best providers for given conditions, explain the differences between HSAs, HRAs and flexible savings accounts, cut through the red tape of HMOs, explain the new Medicare Part D benefit, outline how the Family Medical Leave Act works and even help file your medical claims. EAPs already have access to financial and legal resources, so this is a natural extension of what they already do.

HRM. So an EAP could advise an employee for on the best plan for them?
ZM. Well, employees who are urged to set up HSA or HRAs will undoubtedly have a variety of questions about how this new plan works. They need to determine how to best spend the money in their HRA or HSA account. Should they use funds from their HRA or use their FSA funds? What services are reimbursable through the accounts? Which accounts earn interest and what are the tax implications? And if they ever leave employment, can they take their money with them?

That’s why an EAP is a perfect resource for these questions and more. The EAP consultants can help individuals determine how best to use their resources, for example, by asking key questions related to health and lifestyle. For example, families with kids who are active in sports might want to consider the average cost of a visit to the ER. Does your family have a history of heart disease or diabetes? You might need to learn about procedures and drugs associated with these chronic illnesses. With that information an EAP consultant can help determine the right dollar amount to set aside and suggest ways to maintain a healthy lifestyle.

HRM. What do you see as an ‘ideal’ EAP?
ZM. I want to see vendors provide an EAP that can help guide employees as they make critical decisions about their health. I’d like an EAP to create a culture of wellness and prevention, provide proactive employee-centered health education, sort through the growing array of health care and insurance terminology, offer resources that help employees make informed decisions about quality, cost and treatment and act as a trusted adviser, considering not only the needs of the body, but the mind and spirit as well.

At Ceridian, we continue to enhance our EAP and work-life services and educate our consultants about how to answer the growing number of questions related to health care benefits. I believe large EAP providers like Ceridian can be a great resource to companies who want to provide an EAP that address these challenging issues.