2022 Health Insurance Outlook, ChangesDecember 1, 2021
Hospital Indemnity Insurance a Key Voluntary BenefitDecember 14, 2021
Employers looking for ways to decrease their group health insurance outlays over the past decade have been turning to high-deductible health plans as they offer lower up-front premiums. In 2021, 51% of the U.S. workforce was enrolled in one of these plans, according to a recent survey by ValuePenguine.com. But successfully coaxing your employees to choose an HDHP is not always easy. It means getting the deductible amounts right and educating them on how to best use these plans. Also, while the plans are not for everyone, they can be a good fit for those who do not use their health plans much, are young and in good health. These employees may instead be overpaying for their premiums if they are not in an HDHP with an attached health savings account (HSA). The key to encouraging your staff to adopt these plans is to first understand why some are reticent about them, how you can overcome their objections and how you can better tailor the plans for them. The following are the main reasons HDHP adoption may be lagging among covered workers.
Lack of educationOne of the biggest hurdles to overcome is that many people are shocked to see the amount of the deductible, even as they save money on their premium. And on top of that sky-high deductible, they still have copays. If you want employees that would be better suited for an HDHP to actually sign up for a plan, you need to take the extra time to:
- Explain how HDHPs work and that there is a trade-off for high deductibles in exchange for lower up-front premiums.
- Provide custom, side-by-side medical plan comparison tables and different medical usage scenarios to illustrate which types of individuals are best suited for an HDHP and which ones are not. (This would include scenarios of individuals who may be high health care users who may not be well suited for an HDHP.)
- Explain how they can funnel what they save in premiums into an HSA so they can save their money for future medical expenses (more on HSAs later).