Dust off your group insurance!

Dust off your group insurance!

The current labor shortage is forcing employers to redouble their efforts to retain their employees. This is the topic of the hour! Hardly a day goes by without hearing a business leader talk about the #1 concern of entrepreneurs: recruiting and retaining employees.

Companies compete in creativity to differentiate themselves: lunch provided, daycare at the office, flexible hours, four-day week, etc.

Despite all these initiatives, one element remains unavoidable: the group insurance offer. Many entrepreneurs have understood this and are now redefining their benefits offer.

A few supporting figures

Here is some data, from both plan sponsor and member perspectives, that confirms the importance of group benefits in HR management.

How can your group insurance stand out?

How to be attractive to the youngest while adequately protecting experienced employees? How to maintain reasonable and stable costs over time? This is where an innovative business model comes into play, the third-party administrator/third-party payer (TPA/TPP).

In the TPA/TPP model, your broker administers your plan (billing, customer service, claims payment, etc.). This formula will allow you to stand out in several respects:

1) Simplify the administration of your plan

Good digital tools and an efficient customer service team improve your employee experience with fast claims payment and easy access to services. In addition, separating the risk (assumed by the insurer) from the administration of the plan (assumed by the TPA/TPP) makes it easier to change insurers, if necessary, since employees and employers continue to transact through a single platform, regardless of the insurer. There are therefore no new membership forms to fill out or new systems to master. We save time and money!

We can even go as far as a complete outsourcing of the administration. In this case, the employer no longer has to do any administration in terms of group insurance (membership, termination, change of salary, change of status, etc.). This will be the subject of a future article!

Remember that insurance should be simple for the employer and for the employees.

2) A flexible and innovative offer

Now that you know the exceptional benefits of the TPA/TPP in terms of the employee experience, let’s talk about the contents of your plan. This must be adapted to each of your employees. Given the different generations that make up the workforce today, the needs are often numerous and diverse.

The TPA/TPP has the advantage of offering you increased flexibility with health management accounts, modular plans or even flexible plans.

Thanks to the multi-insurer/provider solutions of a TPA/TPP, one can advantageously combine interesting, less standard offers, such as pharmacogenetic tests, EAPs, the virtual clinic, help for alcohol addictions and drugs, etc. And the beauty in all of this? The employer does not have to manage six different suppliers, since everything goes through a single platform.

3) Stabilize insurance costs

To offer competitive long-term benefits, you have to manage your costs well. In addition to a multi-insurer/provider solution, which allows you to negotiate the best prices with optimal profits, a TPA/TPP offers you, depending on the size of your company, to consider self-insurance. This innovative option reduces administration costs and avoids paying a risk premium.

Another way to manage costs well is to work upstream, that is, to put in place good cost management practices and to educate employees on the judicious use of the plan. A third-party payer is able to set precise performance indicators and propose the best possible actions to reduce claims in the long term.

A key to the future

Although this is not the only aspect to consider for an employer, the group insurance offer is a major factor in attracting and retaining employees. The workforce is getting younger and younger and the traditional offering as we have known it for 10 or 15 years is simply no longer suitable.

Good, flexible and innovative technological tools combined with a solid cost structure are key to the future of our businesses.

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