The Benefits of New Approaches

(Provided)

Attracting and retaining good employees can be a problem for Arkansas business owners and HR departments, but offering a strong package of benefits has typically been the best solution. Unfortunately, changing employee expectations and rising insurance rates are combining to make this solution almost as challenging as the problem itself.

It may be tempting to start looking for a new solution, but the reality is that it’s just time for employee benefits to evolve. Difficult times can be the inspiration needed for innovation and positive change; the type of change that will ultimately lead to better options and outcomes for both employers and employees alike.

According to a report from health policy research group KFF, family premiums for employer-sponsored health plans rose by around 7 percent% in 2024, with employers paying most of the increase. A larger increase is likely this year. Arkansas Business covered this unfortunate trend in December, but it was already on the minds of those of us in the insurance industry, particularly those of us who focus on employee benefits.

Having just wrapped up another season of open enrollment for clients across the state and region, our the team at JTS has become very familiar with the frustrations common to both employers and employees: rising premiums, access and affordability of new drugs, and general confusion over complicated plans and processes. In fact, we at JTS saw these problems coming several years ago and began to focus on making the changes necessary to address them.

If you look through the coverage in recent insurance and benefits industry publications, a common theme emerges: Options. Specifically, more (and more creative) options for addressing costs and obtaining better coverage and care.

Here are some specific ways to address these three areas:

Cost:

• A basic first step is to consider options beyond fully insured plans that offer little flexibility and transparency and working with experienced and knowledgeable brokers that work with strong networks of providers (to help identify potential savings opportunities and services to meet your needs). Explore self-funded insurance models, which provide greater control and insight into healthcare spending. 
• Use direct contracts with carriers for exclusive relationships to save employees money.
• Carve out pharmacy expenditures, which is a primary driver of higher costs, while developing separate strategies for tackling the rising costs for infusion treatments (chemotherapy and other medication therapies delivered intravenously via needle or catheter). 
• Make use of tools like stop-loss insurance and data-driven strategies to manage long-term costs effectively. A broker with the right technology and expertise can provide the analysis, regular reporting and recommendations needed to help control costs. 

Coverage:

• Design plans that minimize out-of-pocket costs for employees, focusing on deductibles and co-pays. 
• Invest in solutions that simplify access to care, ensuring employees can make informed healthcare decisions without financial barriers. One concept being explored more often by large employers is on-site or near-site health clinics. This involves partnering with specialized clinic providers who handle all ofall the clinic set-up and management. These clinics cater to employees for specific services, including onboarding services like drug screenings. Near-site clinics are clinics set up through partnerships with other area businesses to further manage costs of providing care. These exclusive clinics also allow employers to take advantage of 340B drug pricing. 
• Explore ways to educate employees on their coverage and the specific care options and tools at their disposal. According to the 2024 Global State of Benefits report by international benefits consulting firm Ben, low employee engagement with benefits is a major challenge for employers, with almost 40%  percent of companies responding saying they only communicated with employees about benefits once a year. A better long-term benefits communication plan, benefits hub websites or apps, instructional videos and booklets and more are options for keeping employees informed. More businesses have been providing total compensation statements that help employees understand the full scope of what an employer has invested in them, highlighting everything from the typical health, dental and vision plans to retirement matches, PTO, continuing education stipends and more. 

Care:

• Prioritize health outcomes for employees and seek new approaches and options based on this focus.
• Incorporate direct primary care, wellness programs, and transparent partnerships with providers to enhance the employee experience. This is critical, as more businesses try to meet employee needs and attract employees with more personalized options. The on-site and near-site employee clinics help address both care personalization issues as well as cost and coverage, which could include workers’ compensation management.
• Focus on preventive care and chronic condition management to reduce long-term claims. For example, one driver of drug insurance costs is the increased demand for pharmaceuticals that help with weight-loss, particularly the new GLP1 injections. The drugs can have long-term benefits for obesity and help control chronic conditions such as Type 2 diabetes, but usage of these can be packaged with counseling and outlined programs to help employees succeed in meeting their health and weight-loss goals. 

Ultimately, the road to better outcomes for both businesses and employees involves overcoming the temptations to either play it safe by sticking to the typical approach to employee benefits or to give up on providing rich benefits packages at all. New and better strategies are needed, with new and better options. 

At JTS, one of our core values is “creativity” and our motto is “intentionally different.”  Arkansas business owners can embrace this same mentality to achieve business objectives, while also meeting the changing demands of the modern workforce.

Learn more about JTS at www.jtsfs.com or find the specific products and services you need at www.choosejts.com.

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