A Message from John Yozell | 2009 Employee Benefits in the Economic Downturn
12/17/2008
As 2008 comes to a close all of us at Yozell Associates want to extend our best wishes to you and your employees over the upcoming holiday season and wish you a successful 2009. However, given the new economic realities facing all employers, we want you to know we are committed to working on your behalf, as your business partner, to continue to develop your benefits strategy, to help you meet your financial and business goals.
The reality of the increased economic pressure has already caused a growing number of clients to ask our assistance in modifying their existing employee benefit plans. During 2008, many of our clients implemented plan changes by increasing co-pays and deductibles. In addition, a growing number of Yozell clients implemented a $1000 deductible medical plan combined with a Health Reimbursement Account that funded all or a portion of the deductible for their employees. Information from Mercer’s annual 2008 National Survey of Employer Sponsored Health Plans suggests that nationally, employers have increased the median individual deductible to $1000, up from $500 in 2007. Finally, strategically offering voluntary/employee paid benefits alongside re-designed employer paid plans can help reduce the total benefit expenditures for the employer and provide employees with options to minimize potential gaps in coverage.Although most employers only review their employer-sponsored benefits once a year at open enrollment, many carriers are willing to consider an off-anniversary design change of your plan. If you would like to review your plan selections mid-year please do not hesitate to contact your Yozell Associates account manager to discuss cost saving opportunities. Making unscheduled off anniversary changes to employee benefit plans may cause uncertainty in the work place. However, communicating to employees proactively and keeping employees aware of all possible changes under consideration is helpful to their acceptance.
As part of our on-going services Yozell Associates offers Employee Total Compensation Statements and/or Customized Employee Benefits websites. These tools are developed in conjunction with your HR team to communicate and promote the value of your employer sponsored plans. Experience has shown that the use of medical services tends to increase in times of recessions and job uncertainties. By using these tools and directing employees to the vast array of low cost resources available to them through your current health and disability carriers, employer cost can be better managed and employees are better prepared when and if benefit reductions occur.Best Regards
John