Selecting a company healthcare plan is a high-stakes game. The cost to the company is significant, the impact your choice will have on your employees and their families is enormous. The pressure is high.
With the right understanding and research, it is possible to choose a plan that satisfies the needs of your staff while also accommodating your business’s financial means.
In this article, we take a look at how to choose the best health options for your employees.
The System
It’s no secret that the American healthcare system is complex and largely inequitable. Over half a million veterans lack insurance, despite the many resources in place that are supposed to help connect them with it.
Similar disparities can be found amongst racial and social demographics. Access to insurance is an important element of living a healthy lifestyle. People tasked with selecting an insurance plan for their business have an enormous responsibility, both to their company, and the people working in it.
The Stakes
Choosing a healthcare plan for your company is one of the most important decisions you will make. The stakes for your staff are, of course, obvious. The plan you select will have a significant impact on how they take care of their own health, as well as the health of their family members.
Healthcare is also vital from a strictly business perspective. Studies show that healthcare comes in as a close second to compensation when it comes to how applicants decide what company they want to work with.
The right will serve the dual purpose of keeping your staff healthy while also improving the overall public perception of your business. But how to choose it?
HMO vs. PPO
Health maintenance organizations (HMO) versus preferred provider organizations are one of the first and most important decisions that must be made when selecting a healthcare plan for your business. HMOs tend to be more affordable, and are, for that reason, most common.
HMO plans allow policy holders to select from only a pre-approved list of doctors. The policy will dictate which doctors are approved. This type of plan can be fairly limiting and may require some employees to find new doctors.
However, it does have the benefit of featuring lower costs for your business and lower out-of-pocket expenses for the employee.
PPOs benefit from significantly more flexibility. Policy holders can choose any physician they wish without needing to get a referral. Unfortunately, this level of flexibility comes at a cost. PPO plans are more expensive both for you and your staff.
Speak with Your Employees
Naturally, your staff will want to have some level of input in what healthcare plan is going to be selected. Speak with them about what their healthcare needs are, and what sort of expectations they have. You can do this effectively by explaining what plans you are already considering, and what the expenses will be to them.
Of course, while employee feedback is important, it must be taken with a grain of salt. You can’t shape your plan based solely on the wants of your existing staff for the simple reason that people come and go. Instead, look for a high-quality, long-term plan that can cater broadly to the wide spectrum of potential healthcare needs.
Speak with a Local Insurance Broker
Once you’ve narrowed your options, it’s a good idea to speak with a local insurance broker. They will be able to provide you with quotes that should provide a clear indication of what the monthly cost to your business will be.
They may also be able to provide a higher level of insight into the scope and overall quality of said plans than you might be able to gleam independently.
Using this information, you can then work on selecting a plan that most closely aligns with your employee’s needs and expectations, and your business’s financial means.
Conclusion
Navigating the ethical and financial tightrope walk that is selecting a good insurance plan can be very difficult. Naturally, most business leaders want to provide their employees with the best possible plan available.
Unfortunately, the financial reality of insurance is that compromises — sometimes many compromises — will need to be made in order to select financially viable plans.
Understand that no matter what, you will not be able to please everyone. Each person on your staff represents not just one person, but often an entire family, compromised of a wide range of healthcare needs. You may not be able to satisfy everyone’s complete wish list. You can, however, do your best to select a solution that does the greatest good for the most people.
It will be a hard decision. However, by taking your time, and doing your research you can make the right choice.
