If you’re like most employers, you had to change your company health plan when the Affordable Care Act went into effect. How do you know it’s time to consider doing that again? When and why should you modify your health plan?
Here are some situations that could give you a reason to adjust your health coverage:
- Your financial situation has changed. Is your company more profitable now? Maybe you can afford a richer plan. Is your financial situation precarious? Your company may need to switch to a higher deductible plan.
- Your competitors are offering better benefits than you are. It’s important to attract the best employees you can get, and that means ensuring your pay and benefits packages are attractive and competitive. If other employers in the area and in your field are offering better health insurance plans, it’s time to upgrade.
- You’ve hired more employees (or let some go). Plans are often based on the number of participants. Don’t assume the deal you put together when you had a certain number of employees is still going to be the best deal when you reach a higher (or lower) amount. As your employee number changes, you need to evaluate whether your plan works.
- Your staff makeup has changed. Maybe you have a young staff, or maybe your workforce is largely made up of an older group. These demographics have different needs, and different plans can fit those needs more accurately.
- You’ve added a wellness program. Some health insurance companies offer discounts for employers that put wellness programs in place. If you’ve recently implemented one, it’s time to double-check and see if you’re eligible.
- There isn’t a good selection of health care professionals available in your network. Your employees want to be able to see a doctor of their choosing, but if the plan you signed up for only allows them to visit doctors at inconvenient hospitals and clinics, their options are too limited. If your plan doesn’t allow for a convenient selection of doctors for the majority of your workforce, it’s time for a change.
Even if none of these things have happened recently, it’s worthwhile to evaluate and determine if your plan is the best one for your business and employees.
This content is provided solely for informational purposes. It is not intended as and does not constitute legal advice. The information contained herein should not be relied upon or used as a substitute for consultation with legal, accounting, tax and/or other professional advisers.
Suzanne Lucas spent 10 years in corporate human resources, where she interviewed and hired employees, managed the numbers, and double-checked with the lawyers. Her writings have appeared in Inc. Magazine, CBS MoneyWatch, US News, Readers Digest and other publications. She focuses on helping businesses nurture great employees and helping employees enjoy great careers.