For many brokers, the world of limited-benefit health plans is considered foreign territory. Questions about administration, implementation and return-on-investment are common. Many advisors find themselves asking "is offering a limited-benefit health plan worth my client's time and energy?"
The answer is -- if you're offering the right plan to the right client -- definitely.
Recruit, retain and reap the rewards
The value of a limited-benefit plan lies in its ability to cover common day-to-day medical expenses with a reasonable amount of coverage for unexpected illnesses and accidents. A good limited-benefit plan helps an employee offset the cost of routine medical care and plan for ongoing health expenses -- at an affordable price.
Access to everyday medical care and wellness benefits ensures healthier and happier workers -- improving productivity while decreasing turnover. As workforce levels continue to decline it is more important than ever to keep people healthy and on the job. Retaining the best employees is vital. Your client's implementation of a limited-benefit health plan will lead to less absenteeism and presenteeism from insured workers.
So what does it cost the employer to improve recruitment, retention, productivity and employee health? More often than not, nothing. Many limited-benefit plans require little or no contribution from the employer, with plans starting at just an hour or two of an employee's weekly pay. The biggest investment required is spending time to select the correct plan for employees and the minimal effort to implement.
Clients with a large percentage of high-turnover, or hourly employees, will see the greatest rewards. This includes industries such as hospitality, retail, restaurant, construction and manufacturing. These industries are often deemed headaches by many brokers, but they are satisfied customers of limited-benefit health plans. CIGNA HealthCare research estimates that over one million people are currently covered by limited-benefit plans, from Fortune 500 businesses to mom-and-pop shops.
The satisfaction with limited-benefit health plans in these industries originates from offering a plan of true value to their employees. It's not enough to simply look at premium, benefits, or network individually. The strength and true value of a plan lies in how all three work together to provide the greatest benefit to the employee.
Focus on ease of enrollment, administration
When selecting a limited-benefit health plan for your client, focus on ease of enrollment and administration as well as simplicity of the plan itself. Efficient administration process allows a client and broker to focus on important business activities instead of repetitive administrative tasks.
The importance of communication
Limited-benefit health plans often serve a population that has never had exposure to health insurance or health care beyond the emergency room. When identifying a quality limited-benefit health plan to add to your product portfolio, it is important to consider the enrollment and educational communication material available.
Best practices in member communication include:
- Simplified content in enrollment and marketing material
- Creative enrollment strategies
- Simplified enrollment processes - Interactive Voice Response, Internet, live agent
- "High-Touch" consultative customer service
- Bilingual communications
- Access to health information and resources via print literature, online and traditional telephone customer service
Effective communications leads to a higher participation rate and greater employee satisfaction with the plan.
Selling a limited-benefit plan to your client
Start by explaining what a limited-benefit health plan is not. It's not a major medical plan designed to cover catastrophic health issues. It's not a discount plan. It is a health insurance plan designed to cover common medical illnesses and injuries for people who don't have access to comprehensive coverage. Does your client have a large population of employees without insurance? Do they struggle with high-turnover and low productivity? A limited-benefit health plan can be positioned perfectly to meet their needs.
Fortunately, many limited-benefit health plans provide varying levels of coverage designed for different classes of employees. In this case, a broker is the most valuable asset a client will have to help sort through the available options. You've got the resources -- and the knowledge -- to simplify and optimize your client's benefits strategy.
