How to Get Ahead of Renewal Anxiety

With a challenging macroeconomic environment and continued complexity around remote/hybrid workforces, we can expect this renewal season to come with increased anxiety.  

As fears around the pandemic ease, business worksites are reopening. However, whether by choice or need, many employees are likely to continue working remotely. Employers are also recognizing that there are advantages to allowing remote work, such as the ability to widen the pool of potential employees. In fact, when asked how they think their workforces will be modeled 12 months from now, 77% of corporate executives expected a hybrid approach with a portion of staffers working in-office and a portion working from home. This leaves us with many remote and/or hybrid populations that require specialized benefits communications and planning.

At the same time, the macroeconomic environment has put increased pressure on employers and employees. Layoffs are abundant among even some of the most recognizable brands such as Disney, Indeed, Meta, and Amazon. Rising interest rates have exposed bank insecurities and shaken consumer confidence. As such, all financial decisions - including benefits - will come under increased scrutiny this year and will be paired with a corresponding dose of anxiety. 

So, how can brokers help their clients ease the anxiety around their benefits decisions? Here are 3 ways to make the renewal process less stressful this year:

1. Virtual Open Enrollment: With many employees working remotely, it is important to ensure that healthcare benefits communications reach even those who are not always in the office. Hosting virtual open enrollment sessions, via Zoom for example, is an effective solution. Another way to ease the enrollment process would be creating a branded microsite that explains the various benefits programs offered. The microsite should also include links to recordings of the Zoom sessions, and a facility to book a one-on-one consultation with a benefits expert. Most employees make healthcare decisions at home the day before the deadline, so this online format allows for asynchronous access to important benefits information. 
2. Visibility into the Marketplace: Prior to receiving renewal from the incumbent carrier, employers should proactively market to competing carriers. Not only does this provide employers with visibility into the marketplace, but it also initiates competition between the incumbent carrier’s offer and lower offers from competing carriers. As a result, employers have a longer lead time to utilize their negotiating power and reduce plan costs. 
3. Educate Employees On Benefits: 33% of Americans don’t understand the benefits they picked during open enrollment. Furthermore, 66% of employees want their employer to help them better understand the benefits they enrolled for. With increased stress around the economy, it is more important than ever to help employees make educated benefits decisions to ensure that they are not over- or under-insuring relative to their needs. Digital tools, such as a plan recommendation tool, can also be helpful in giving employees an estimate of the total cost of care under every plan option.
4. On-Demand Access to Claims: Employers should regularly assess their claims activity. Gaining visibility into whether their large claims are one-time or ongoing, for example, ensures that employers can best prepare the HR team and employees in general for renewal. Additionally, observing healthcare trends in the employee population is beneficial during certain parts of the process, such as plan design. Maintaining on-demand access to claims is an effective way for employers to ease anxiety during open enrollment.

Do you anticipate renewal anxiety this year? Get ahead of it with a demo of PlanYear digital benefits platform.