Will Promoting My Benefits Plan Increase Claims?

Jun 16, 2015

Much time is spent developing strategies for effective communication and education of plans, but industry reports still note a void in communicating benefit plan information.

Within these efforts to increase information to employees, many plan sponsors have wondered: “If we promote our benefits plan – will that lead to more claims, and ultimately, higher costs?” The answer isn’t simply a yes or no; it’s both.

Plan sustainability should be at the forefront of this discussion, as any sustainable plan relies on employees playing a key role. Employee behaviour has a significant impact on costs such as prescription drugs, paramedical usage and of course dental services.

So, it is important to inform employees of all the benefits their plan may offer. However, it is also important to educate employees on the importance of spending their benefits dollars wisely. Explaining the impact of their purchasing decisions at the pharmacy, paramedical office and dental office will help to create a wiser consumer of insurance services. For example, simple education on how the purchase of generic drugs over brand-name drugs will reduce costs for both employee and employer could have a positive long-term impact on claims costs.

Simply put, if there’s an increase in claims, there will also be an increase in costs to continue the plan. However, employees who understand their responsibility to support plan sustainability will make better choices when claims are incurred.

Behind every great plan is a great strategy. When it comes to employee benefits, a well-developed communication plan that supports both employee health, and financial sustainability is always the best practice.

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