Though this year promises to bring dramatic change to employer-based healthcare, one thing stays the same: employers are looking to cut costs. Many will continue to adjust healthcare plan design, contribution percentages, deductibles and co-pays as a means to do so. According to a recent survey by global professional services company Towers Watson and the National Business Group on Health, an association of large employers, 95 percent of companies expect to reevaluate their health and pharmacy benefits strategy and 89 percent expect to evaluate their vendor/network strategy. Of those employers, 36 percent said assessing the viability of or adopting an active employee private insurance exchange is a top priority over the next three years.
How does a company know if a private benefits exchange is the right move? Here is a list of the top ten questions HR leaders should be asking:
- Will I better meet my business goals?
- Will I achieve my cost savings goals?
- Will my employees get the choice they want?
- Will my employees see a cost savings?
- How much disruption will the change cause, and which provider can offer the least disruption?
- Which provider will help drive improved participant wellness?
- Which provider has the best network coverage—and the best discounts—for my employee base?
- Which provider offers the best customer service, decision and use support, communications and ancillary benefits?
- Which provider supports my contribution strategy?
- Which provider supports my funding strategy, whether it is self or fully insured?
Different answers will be right for different enterprises. To hear from someone who’s been through the process and come out on top, listen in to ISG Smartalk: How to Determine which Private Exchange is Best for Your Organization: One Company’s Story, in which Senior Vice President and Chief People Officer at MSC Industrial Supply, Kari Heerdt discusses how her company found a private benefits exchange solution based on a solid analysis of finances, delivery, employee experience and compliance.
