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Does business health insurance need to be tailored to each employee?

22 January 2020 - 9:50am

Are you offering corporate health cover to your employees? As an employer, you may find that making a range of personalised health options a cornerstone of your employee benefit plan makes all the difference when attempting to attract and retain top talent. But how do you determine what to offer, and how can tailored business health insurance be achieved?

The case for corporate health insurance customisation

Your employees are not all alike. You may have a diverse range of people working in your organisation, with a diverse range of needs. Some may be perfectly healthy, while others struggle with preexisting conditions. Some require flexibility of scheduling, while others prefer a dependable routine. Their commutes, habits, home life and recreation preferences are all different, so why shouldn't their health cover reflect their unique needs?

When people have the ability to choose the services they need, particularly when it comes to health cover, their lives improve. When personal worries over health concerns are alleviated, productivity goes up, sick days go down, and your entire company will run more smoothly. Tailored business health insurance plans can be one way to give employees peace of mind.

Matching benefits to employees

Personalised health offerings begin with a willingness to adapt to a new approach to benefits. Employer-based benefits systems are set up for minimum hassle to administrative staff, Typically have few options and are difficult to customise. However, with the right health cover provider, you can improve your employees' access to the coverage and care they need.

The simplest way to provide tailored business health insurance is to simply provide access to the insurer through a corporate plan and allow each employee to negotiate their own specific needs. A personalised plan can be created that allows the employee to pick and choose. However, if part of your compensation model is to provide full cover, this level of individual planning may not be possible.

Create employee profiles

The next best thing is segmentation. By identifying commonalities between employees and dividing them into different groups, you can identify the range of health insurance benefits most likely to deliver a close match to each individual. Creating profiles is the first step to building out tailored business health insurance plans.

Research your team's diverse personalities, lifestyles, needs, and habits, as well as their overall health profiles. Then create four to eight profiles that have multiple characteristics in common. This allows you to envision each of your employees as belonging to a group represented by a profile.

Questions to ask as you compile these demographics include:

  • Who is working at your company?
  • What age ranges are represented?
  • Do you have both full time and part-time workers?
  • How many employees have dependents?
  • Where do your employees live?
  • How much disposable income does your average employee have?
  • How much time off (paid and unpaid) can each employee access?
  • Do your employees have other access to private or corporate health cover?
  • What kind of lifestyles do your employees have?
  • What do your employees do in their off time?
  • What other responsibilities do your employees have?
  • What common worries do your employees have?
  • Are your employees comfortable with technology?

By asking your employees to provide information about themselves (as much or as little as they prefer), you can help test and tweak your profiles until every employee in your company is adequately represented.

This approach is not as exact as individualised personalisation, but is far superior to a one-size-fits-all approach when it comes to health cover. Once all of your employees are internally represented by a profile, you can begin to design tailored coverage.

Design a base plan for each profile

Once your employees have been internally segmented, look at the benefits you are prepared to offer and work with your broker to develop plans that provide a tailored base for each profile, accompanied by optional coverage that can be added for further personalisation.

This will allow you to avoid the administrative challenges of every employee having a completely a-la-carte approach to their health cover, but still permits a wide range of customisiation. By making base plans as tailored as possible to each profile, you provide better options for your employees and the ability to keep costs under control.

Knowing that their employer took the time and trouble to take every employee's needs into account when choosing health cover offerings will engender loyalty and appreciation among employees. This can improve employee attendance, satisfaction, and retention rates, and cut down on workers compensation claims, all of which provide a cost savings to your organisation.

Creating a healthier workplace

In addition to tailored business health insurance, you can provide additional support by making wellness a priority in the workplace. You can work with your corporate health cover broker to find solutions that provide extra support in the workplace, from raising awareness about health to identifying and servicing mental and emotional health needs.

Consider adding additional benefits to employee packages that promote a healthy lifestyle, encourage them to eat healthier foods, and to exercise more. Provide for health screenings and focus on promoting workplace health and safety. Have upper management lead by example, and foster a spirit of communication. Make sure employees feel they can voice their needs and ask for help.

Foster the idea of work/life balance, and check in with employees often to make sure their needs are met. Providing customised health insurance is just the first step to a happy, healthy, well-adjusted workforce.

For more information on the benefits of providing corporate health insurance in your business, or to find out how HICA can help, contact our team today.