PLAN DESIGN OPTIONS
In
many ways plan design is the most important aspect of your benefits
program. Most of the frustration associated with benefits stems
from plan design. Employees’ satisfaction is dependant on
how effective the plan is. Poor plan design can lead to abuse if
the proper guidelines or restrictions aren’t in place, therefore
costing more money. A poorly designed plan will not have maximized
the efficiency of the premiums spent, especially if you are investing
in benefits that are not utilized or valued. Even beyond the obvious
plan design options there are nuances which can enhance or diminish
your plan depending on if they are utilized or not.
Example: Most brokers will suggest including Paramedical services
(Chiropractor, Psychologist etc.) in your plan design and establish
a maximum per practitioner. As a response to an increase at renewal
they might suggest you lower the overall maximum as a cost containment
measure. This is a typical “solution”. Gowan Consulting
approaches this issue by studying your employees’ usage patterns
to determine which cost effective solution will least negatively
impact your employees. Per visit maximums, maximum number of visits
per practitioner, and maximums on specific paramedical services
and not others, or doctors’ notes for certain services that
are more prone to abuse than others such as massage therapy are
some of the cost containment measures that can be tailored to your
plan’s particular usage patterns.
This
is one small component of one part of one benefit. Imagine if someone
analyzed your entire program with this much detail.
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