Looking to Lower Your Cost on Group Benefits? Try Adding Value! (Part 1)

There is a lot of focus these days towards containing the current costs within group benefits. Organizations are searching for solutions to help lower claims; we all know that today’s claims equal tomorrow’s premium.  Most organizations approach the problem by either reducing coverage within the benefits plan or getting employees to contribute to a larger portion of the premium.  While this addresses the short-term problem, it is only a band-aid for the future; unless something else is done, the issue will only get worse. 

So… what can you do to provide a long-term positive impact on claims while also maintaining the value for staff?

There are actually a number of terrific tools in the marketplace that do just that.  The four that are easily identified are:

1. Employee and Family Assistance Programs (EFAPs)
2. Wellness Initiatives
3. Prescription Drug Management
4. Disability Management

I will discuss each of these programs in subsequent articles. Today, I will start by addressing the first item, Employee and Family Assistance Programs. 

What is an Employee and Family Assistance program?

Essentially, it provides you and your staff with short term counselling services.  This can typically be done through face-to-face sessions, telephonic counselling, or other electronic methods such as e-mail or text counselling.  Most providers will also give access to internet resources in which people can interact, take quizzes, order materials (such as CD’s, DVD’s, or booklets), and receive support for any life issue they may be experiencing.

Organizations that use an Employee and Family Assistance program typically see a great return on their investment. These programs assist in lowering the cost of:

• Absenteeism - employees missing work because they have to address a life issue they are experiencing;
• Presenteeism – employees show up to work but are distracted by a life issue they are going through; they can also be distracting to others;
• Prescription drug claims. 

I’ll share a few examples so you can better understand the benefits of such a program… 

Absenteeism

I used to work with a gentleman who was often facing unique challenges in trying to find a child care program that offered ideal services and support for his kids. He would run into an issue with each service he tried, and because of these problems he would often stay home from work to take care of the kids as he searched for a more suitable nanny or day care. 

Upon implementation of the Employee and Family Assistance program, he contacted our provider regarding the issue.  Within five days, they sent him a list of day care facilities in his local area that were accepting toddlers. He received relevant details such as: the distance from his house, estimated drive times, and testimonials from other parents.  Within a couple weeks, he found a great day care for his kids and he was very happy with the long-term results.

This was a huge success for the company as my co-worker was now present on a regular basis without any concerns of another family incident taking him away from the office.

Presenteeism

A close family friend used to live a kilometre away from us.  She was an older woman who had a constant fear that someone was trying to break-in to her house.  At night, when she thought she heard someone breaking in, she would call me to come and investigate her premises. These events typically occurred at approximately 2:00 AM.  After a few nights of this, I became pretty useless at work due to the interrupted sleep I was getting.

Even though I was going to work each day, I knew my contribution to our team was suffering.  This caused me to feel guilty and spend extra time at the office in order to “catch up”. 

My supervisor suggested I call our Employee and Family Assistance program for ideas on how to make our friend feel more safe. So I did – they gave me suggestions and provided me with contacts for community resources that she could utilize. After passing on this information, our house didn’t receive another early morning phone call. The lady loved the resources I suggested and felt supported by me as she was able to handle her fears on her own. My contribution at the office improved and I was no longer the weak link on my team.  I no longer felt the need to stay late and “catch up” which allowed me to make it home for dinner every night with my wife; this ultimately made me more satisfied as a person. 

Prescription Drugs

This is where Employee and Family Assistance programs provide the biggest cost savings. When an organization can get its employees to see a counsellor for any stress, depression, anger, or anxiety items rather than going to their doctor for a prescription, the impact on claims will be more than enough to pay for the additional cost of the program.

Note: Some programs may include extended health care and will not cost your organization any additional monthly premiums.

In Closing

To maximize the results, organizations need to ensure that each employee knows about the program and is encouraged to use it. When managed correctly, the extended health costs will come down – as I’ve seen happen with many of my clients.

I’ve illustrated a few ways in which an Employee and Family Assistance program can benefit your organization – I hope you consider implementing one with your group plan. If you have any questions or comments regarding EFAPs (such as a recommendations for service providers or how to add one without any additional cost) please connect with me at michael.kettner@kettnerbenefits.com or visit my website at http://www.kettnerbenefits.com/.

One Response to “Looking to Lower Your Cost on Group Benefits? Try Adding Value! (Part 1)”

1. Matt Fraser says:

   September 23, 2011 at 8:29 am

   Great article! It is nice to hear others talking about the big picture rather than knee jerk reaction solutions.

   Reply