3 Tips to Avoid the “August Anxieties”
By Charlie Parker, Employee Benefits Consultant
Ever heard of the “Sunday Scaries”? Sunday night rolls around, and suddenly you find yourself thinking, “Oh no… I am not prepared for this week.” Maybe you fell out of your routine, got sidetracked by visitors, or simply let things slip your mind. It’s that mix of worry and unease about what lies ahead.
Similarly, in the world of Employee Benefits we have the August Anxieties. Consultants, CFOs, and HR teams (especially those with a 1/1 renewal date) desperately want to avoid experiencing this.
Unfortunately, it happens. You receive your renewal and BAM! – a double-digit increase. Now, you have just a few weeks to analyze data, market, negotiate, adjust plan designs, market again, make decisions, create new employee materials, and present to employees. Not to mention, all these decisions impact your company’s second-largest expense. Cue the August Anxieties…
So, what do you need to prevent this? Here are my three tricks and tips to help alleviate those anxieties and avoid feeling trapped when that renewal arrives:
- Get Data!
I am a very data-driven person. A “numbers nerd” if you will. Which is why this is at the top of my list. There is data available to help understand your company's historical experience, utilization habits, prescription drug use, and overall risk profile. Even for you, “small” companies! Here are some things to ask that will give you a better idea of what your health plan looks like:
a. Premium vs. Claims Reports (Medical and Dental)
b. Medical Loss Ratio
c. Demographic Information & Benchmarks
d. Experience Reports (Three Years)
e. AI Claims Information
Let this data guide you, but do not follow it blindly! Previous claims are not predictors of future success. Use this information to prepare and best understand your current situation. Maybe the data shows that you should explore a different funding method – a tough task in a time crunch! The sooner you can get data, the better.
- Know Your Communication Strategies
Insurance can be confusing, but understanding the fundamentals is crucial for employees to use their benefits efficiently and effectively. Benefits are a significant company investment, so the communication strategy you plan with your broker is critical. Make a plan to clearly articulate your benefits in a way that is memorable and repeatable.
You know your employees best! Here are some ideas for effective communication strategies:
a. In-Person Meetings
b. Online Meetings
c. Interactive Video Presentations
d. Guides/Packets
e. All of the above!
Develop a framework of how your benefits are presented prior to finalizing plan decisions. Having a planned structure ensures a confident and effective delivery of your benefit plan to employees.
- Identify the Path to Priorities
What do you need for a successful renewal season? Work with your team to write down observations and priorities that meet the needs of your company, your employees, and yourself! Identify 2-3 key areas to prioritize and outline what needs to be done for each. Who is responsible for each item? When does it need to be accomplished? Schedule your next meeting and be accountable!
Proactive planning now can lead to smoother renewals and better outcomes for your company and employees. Accumulating data, having a solid communication strategy, and keeping priorities in check will help you leave the August Anxieties in your previous plan year.
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