Why Offering Options Could Be Your Key to HDHP Success
March 15, 2018
The healthcare industry is constantly evolving. That’s why we’re sure to communicate recent trends as we find them. One growing trend is centered around how employers transition their employees to a High-Deductible Health Plan (HDHP). Recently, some employers have simultaneously offered an HDHP and a traditional health plan, such as a Preferred Provider Organization (PPO). Employees will have a year or two to choose between the two plans, and after that, all are transitioned to HDHPs. Why is this becoming so popular, and why could it be the right approach for you?
Employees feel empowered with an HDHP
Big changes are always easier one step at a time. Giving your employees a year or two to choose between an HDHP and PPO gives them time to research an HDHP and find out more about the benefits of one. Some of the benefits of an HDHP include lower premiums and the ability to enroll in a Health Savings Account (HSA).
Employees catch HDHP and HSA fever
Word of mouth can be a powerful way for your employees to learn the benefits of an HDHP and HSA. The benefits for employees include:
- They’ll save money because an HSA is funded using pre-tax dollars.
- They’ll also save when purchasing eligible expenses, because those purchases are tax-free.
- They’ll make money since earnings are tax-free. Those earnings include investment opportunities and interest.
A soft rollout lets employees build familiarity through their peers. For example, if Employee A opts to stick with a PPO in the first year, but Employee B choose an HDHP and falls in love with his or her low premiums and Health Savings Account, then Employee A might feel more motivated to choose an HDHP and HSA in the following year after hearing about Employee B’s experience.
You’ll have more time to develop a comprehensive communication plan
It’s crucial that you develop a thorough communication plan. By offering a couple years where both an HDHP and PPO are available to employees, you benefit because:
- You’ll have years (rather than months) to produce a consistent message about the process, changes and benefits for them.
- You can learn from those employees who have thorough questions about an HDHP. You’ll have time to get feedback about what their common questions are, so you can address them the next time around to educate and inform them.
- You’ll have time to check out and share our employee resources with your employees, including our HSA Calculators, videos and our many blog posts.
Want to learn more about how we can save you time and provide the best benefits experience for your employees? Reach out to us.