Medical plans are a part of an overall benefits strategy

For many years, employers have offered their employees an array of benefits. But as the economy becomes increasingly competitive and companies look for ways to attract and retain top talent, medical plans will play a more significant role in the employee value proposition.

Many employers are already offering health coverage as part of the total package that helps entice talented employees. For example, some companies include premiums for spouses and dependents in their base salary calculations. The trend will likely accelerate as medical costs continue rising and more companies get into the act.

Naturally, employers will want to manage the financial risks around employees foregoing benefits; however, such logic is flawed. People are not a risk: They are people that do things on a daily basis and have needs as a result. Only recently, employers have leveraged their plans as an employee value proposition, and there is an opportunity to continue to do so in the future.

As times change, so does how we protect ourselves from potential harm and what we look for regarding coverage and benefits. Likewise, as trends and the market change, our decision-making is also impacted. Here are a few things to consider when choosing your next company.

Preparing in advance for renewal dates will become the standard.

In an era when employees can choose to take their benefits with them when they leave, it’s crucial for employers to think about why they’re offering a particular benefit and how they can make it more attractive in the marketplace. For example, if you offer health insurance, make sure you’re offering a plan that will attract and retain talent. In addition, consider whether or not your benefit levels are competitive with other companies in your industry. Also, ensure that you’re offering flexible options so people can choose what works best for them and their families.

Medical plans are becoming an increasingly important part of employee benefits packages.

Employees want a say in their benefits package, including medical coverage. They want to feel they have some ownership over their benefits and understand what is offered. This is especially true concerning prescription drug coverage — which many employers have been cutting back on in recent years due to rising costs. If you offer prescription drug coverage as part of your medical plan, make sure that it’s robust enough to meet current needs while also being cost-effective for both employer and employee alike; this way, employees won’t feel like they’re getting shortchanged on vital medication just because it doesn’t cost them.

Employers with concerns about the people they employ will pay special attention to vulnerable employees whose lives may be affected by inflation.

Employers that pay attention to their employees’ financial well-being have an easier time retaining them because workers feel valued by the company. In addition, companies that offer assistance with food pantries or utility bills are likely to see lower attrition rates among those who need such help.

A recent survey by Mercer found that 70 percent of full-time workers said they would be willing to give up some perks, such as vacation days, if it meant lower health insurance premiums or higher wages. Of course, that’s not what they want — but many employees say they’d be willing to make concessions if they could save money elsewhere in their household budget.

As companies continue to focus on the bottom line, and as medical costs continue to rise, we can expect to see more companies and employees looking for creative solutions like flexible spending account contributions and health reimbursement accounts.

Protect you and your loved ones with a policy that meets and covers your needs!