We live and work in unique times. The unprecedented circumstances created by the COVID-19 pandemic accompanied by unexpected factors in the employment market suggest employers take a fresh look at employee benefits and compensation data and consider strategic modifications. The role of benefits in total compensation carries considerable weight in attracting and retaining employees. In many cases, employers can offer benefits that employees may not be able to obtain as individuals or at an affordable cost.
For more than 25 years, Keenan has conducted a periodic Employee Benefits Survey of California public school districts. Our biennial survey for the K-12 sector will take place from November 2021 – March 2022. This survey has become a valuable industry report. It is not specific to Keenan clients and is an unbiased industry report that is used by many insurance committees and management to benchmark their specific benefit offerings and contribution models to other K-12 programs across the state.
In addition to evaluating the competitiveness of your program, you may find ways to mitigate risk within your health plan offerings and potentially reduce the incidence of high-dollar claims.
Risk Transfer Solutions – Health Reimbursement Arrangements (HRAs) have become a creative and effective way to transfer risk from employer-sponsored plans and contain utilization and costs without reducing existing benefits. School districts and other public agencies have developed and implemented employee/spousal incentives very successfully by avoiding duplicate coverage and providing employees with alternatives to pay for certain medical expenses.
"Benefits play a considerable role in attracting and retaining employees."
Managing COVID-19 Related Costs – The public health crisis and its impact on people and the health care system are devastating. While federal funds paid for much of the testing, vaccines and some of the care for those infected with COVID, insured and self-funded employer plans will continue to bear extraordinary expense due to this disease. Statistics are showing that severe COVID-19 cases are $2-3 million in cost. Thus, effective testing and infrastructure at the organization level to mitigate the risk of these claims is vital for the fiscal stability of programs.
On-Site Clinics – As the need for localized health care access grows, the relevance of on-site clinics increases. Utilizing collaborations between local agencies we think that on-site clinics can be a critical part of how communities address their medical and health needs. Allowing employees to obtain timely, cost-effective and convenient treatment for minor conditions or routine care can hold down expenses and prevent small problems from getting worse.
These are just a few ideas for making your benefits and total compensation program more responsive to our existing situation. An exploration of the possible approaches could help identify cost drivers you can effectively address.