Are your group benefit costs coming in over budget?
Employers have the ability to drive changes in the management of group benefits to help lower costs, improve the long-term sustainability of their programs and improve the flow of benefits to the right people. But without some resolve it won’t happen.
Cost management is not the only important objective on the minds of employers. Many are looking to expand the value of their benefit plans by reinvesting their budgets into areas – such as wellness – that touch more employees. Other goals are to increase employee awareness of plan costs, encourage employee participation, promote an attitude of consumerism and enhance employee appreciation of rewards.
Typically there is no additional money available to achieve these goals, so employers need to look at new ways to allocate budgets to reinvigorate their benefits plan.
An increase in annual renewal premiums should not come as a surprise to employers. Continual communication between the employer and group benefits plan broker is essential for keeping within budget plan costs.
Cost management of employer group benefits plans continues to be the focus of many employers. Administration charges are often the most immediate target for cost reductions. However, for many employers the savings are small and unsustainable. Administration expenses are a very small cost of operating the plan in comparison to the cost of claims. Although the greatest opportunity for savings is in plan design and improved member health – so that actual claims costs are reduced – there are other opportunities for savings too, that of which we are more than happy to help you with.
Contact a Silverberg Group Consultant to discuss the alternative ways of maintaining the integrity of your employer group benefits plan, yet reducing the cost to meet your budget.
Silverberg Group specializes in employee benefits consulting for companies of all sizes, and is Alberta owned & operated. From employee benefits programs to executive packages, we translate industry information into innovative options and solutions that best suit your organizational goals. Since 1996, over 800 clients have put their confidence in our industry expertise and our exceptional service. Let us become part of your company’s human resources team.