5 communication tips for a successful open enrollment

Reprinted with permission from the August 2007 edition of Wisconsin Broker magazine.

Employers across the country are diligently studying the health care costs  line item in their financial statements, preparing for their upcoming health insurance renewal. A critical component to their success in managing these costs is how effectively they communicate health care and insurance information to their employees, and then, what decisions those employees make based on that information.

Patient Care, a national advocacy company headquartered in Milwaukee, has studied the successful health care communication strategies of their large national clients. Patient Care Advocates help members navigate the health care consumers. Jane Cooper, president and CEO of Patient Care, knows from experience that communication is key to the lower costs realized when consumers are empowered health care purchasers.

“A company that has a well designed and executed open enrollment process will have employees who are better health care purchasers,” she said. “The right communication, directed at the right employees and delivered effectively, will result in a lower health care trend.”

Althought the rate of health care cost increases has stabilized at 8 percent per year over the past 24 months, the compounding rate of increase remains significant, with no end in sight. Many employers are addressing these health care cost increases by implementing a consumer driven health plan (CDHP). In 2007, 38 percent of employers nationwide offered this type of benefit plan.

“A CDHP increases the complexity of the plan and the choices that employees and their families must make,” Cooper said. “If a CDHP is not communicated effectively when it is introduced, the company will not be successful in controlling health care costs over the long term.”

Patient Care encourages employers to develop a clear communications plan as they prepare for open enrollment and initiate consumer drive health plans.

Communication to employees about company healthcare costs and benefits needs to occur regularly. It should not happen just once a year during the Open Enrollment period. Establish an ongoing communications plan that includes messages throughout the year.

Patient Care provides healthcare advocacy services to employers, employees and consumers in all 50 states. A leader in the advocacy industry, Patient Care works directly with its more than 130,000 members to help them solve their healthcare and insurance problems, navigate the complexities of consumer-driven health care plans, find the highest quality, lowest cost providers and become informed health care purchasers.

1. Health care costs are a company-wide problem. The resolution and communication strategy should include all levels, from senior management to hourly employees. The communication plan must include a simple explanation of how higher health care costs impact employee wages and company profitability. The plan also must include ways that employees can impact these costs.

2. Begin the communication process about upcoming health plan changes at least 90 days prior to the effective date of the change. This will require holding your company’s benefit consultant accountable for managing renewal process to meet  your time frames.

3. Keep written information about health plan changes simple and colorful.

4. If  the changes are significant, hold mandatory employee meetings. Employees must be informed and engaged in order to be involved.

5. Include spouses in all communications whenever possible. This is particularly important if the workforce is predominantly male.