BENEFITS PLANS
Review Your Benefits Plans For Cost-Savings
OpportunitiesBY : JASON CHANG , BUSINESS DEVELOPMENT MANAGER , ATLAS INSURANCE AGENCY
COVID-19 has decimated
businesses across the United States , and with so much uncertainty surrounding the disease , the worse may be yet to come . Even businesses that have survived the lockdown intact may be facing curtailed hours , lower foot traffic , and slumping revenues . In light of these challenges , it ’ s critical for all employers to seriously look at their costs and consider what they can do differently in the coming year . Ultimately , their survival may depend on it .
Now is a great time for employers to consider their benefits packages as a possible area for cost saving . Hawaii employers are paternalistic by nature , and most offer generous benefits packages that reach far beyond what is required by law . You may wish to pause and consider the following questions :
• What works and what doesn ’ t work with respect to your current plan ?
• Is there a way you can achieve the same benefits goals in a more costeffective way ?
• What is considered “ core ” and what can be suspended or changed temporarily ?
A lot of companies have been doing the same thing for so long that their own inertia can get in the way of making change . At renewal time , they may be simply doing some price shopping rather than thinking creatively about new ways to structure their benefits packages .
Many clients have approached us during this period to ask about changes we might recommend to help them rein in their benefits costs . Here are some of our suggestions that may help your company as well :
• Unbundling of benefits . If various elements of your plan — such as medical , prescription drug , vision , and dental benefits — are offered together , consider unbundling them so that employees can pick and choose the ones that are most important to them .
• Self-funding options . With selffunding , you are essentially betting that you can manage your plan less expensively through a third-party administrator than you could through a traditional carrier . This option has been gaining in popularity .
• Reduced administration costs . When you consider your plan , don ’ t just look at the benefits themselves . Also look at the time spent on their implementation . An option that ’ s cheaper on paper may not actually save you money once administrative costs are factored in .
• Grandfathering . Consider the importance of employee retention when proposing a change . Rather than
taking away benefits from a current employee , you can opt to leave their plans intact while changing the plan for future hires .
• Cost sharing . You may be able to maintain your level of benefits but make changes in cost- and premiumsharing arrangements that would only have minor impacts on employees .
If you decide to make changes , be sure to communicate these changes to employees clearly and early . Don ’ t shy away from communicating the bigger reasons behind the decision and give employees additional resources for clarification .
Atlas benefit consulting can help you research and implement solutions geared toward cost savings for your company . For more information , contact Jason Chang , Business Development Manager at Atlas Insurance Agency at ( 808 ) 533-8793 . +
BY : JASON CHANG , BUSINESS DEVELOPMENT MANAGER , ATLAS INSURANCE AGENCY
12