Do it right

Build a better benefits plan with Revolution Insurance Services.

You deserve a cost-effective plan where you only pay for what you need while empowering your employees.

Posted Aug 31st, 2016 in The revolution advantage, Build a better plan

We customize each benefits plan for the needs of your company – so your costs are contained.

Understanding the difference between what employees actually need... vs. what they want.

Employees may be very careful with their own money, but with their employee benefits, they often act differently. Too often, we hear that employees treat their benefits like a no-cost entitlement.

For example, they may schedule more visits to the therapist than they actually need. Or, they may choose eyeglass frames with a fancy label rather than the cheaper frames they’d pick if paying out of their own pocket.

With a strategically developed plan, you can manage this challenge.

As we work with you and your team, we will highlight some of the strategies that will help you manage your costs while empowering your employees to make choices that work for them! Here are a few tips.

Give your employees 'skin in the game'. If employees have to cover even a small share of the cost, it will make them more prudent regarding what they spend. This can reduce the entitlement attitude:  “I’m entitled to this, so I’m taking all I can”. This strategy involves harnessing 'consumerism' – the feeling that what they are asking for will actually cost them. Two ways to do this in a benefits plan are:

  1. Deductibles – so they pay part of every expense; and
  2. Sharing the cost – even if it’s just 10 or 15 percent.

Help employees to plan wisely. There are a number of strategies that can be employed here. For example, if employees are able to roll benefits over to the next year, they might decide something like: “I’ll hold off on buying new glasses until next year, because I need to get some orthodontics done first.” This helps them get the outcomes they want, boosting employee satisfaction and the sense that they are able to care for their dependent family members.

Give employees a cap, but a smart cap. To help the employer understand their maximum costs potential, a cap can be placed on the benefits dollars each employee receives. But, it’s a 'smart' cap in that it recognizes that there will occasionally be outsized requirements by an employee, such as a sudden need for a pharmaceutical program costing tens of thousands of dollars per year. The plan should cover outsized expenses, the kind that would cause financial devastation to an employee and her/his family.

Provide the information employees need to make smart decisions. When filling a pharmaceutical prescription, many employees on a traditional benefits plan might not know, or care, about ways they can reduce the cost. This could include asking their doctor for a generic equivalent to a name-brand drug – and generics can be substantially cheaper while having the same efficacy. Employees might also not know that prices of drugs vary by retailer – but if they know this, they’ll take the time to shop around.

These are just a few of the ideas that Revolution will bring to the table when we start working on your plan. Give us a call if you'd like to hear more!

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