With spring in full bloom on the Central Coast and the first year of Riviera Insurance completed, I am happy to say that things are moving into place quite nicely.  With everything new coming about I thought it might be time to review a few things, specifically, your company’s benefits package and how efficiently it is working for you.  As the cost of plans is consistently on the rise, it is critical review policies annually.

Recently, Steve Woodward and I were working with a tech start up. This company came to us and asked us to cover every aspect of their insurance program.  Their biggest concern was creating a competitive and efficient benefits package, something we felt confident in developing. 

This particular entrepreneur had successfully built his last company up to several hundred employees and he wanted a program for his new company that would be open to similar growth.  We were hired to develop an employee benefit plan that provides flexible options for the employees and is sustainable as the business expands.

Contrastingly, I remember the first time Steve and I sat in a room together with the CFO and HR Director of a different company.  Almost instantly, the CFO focused on the expected rate increase and wanted to cut benefits. Meanwhile, the HR Director told the CFO that their current benefit package was not a competitive recruitment tool, and that it affected the talent they could attract and retain.  Debate ensued.

In the end, we compromised.  The employer saw their cost rise and employees saw their co-payments increase.

Today Steve and I try to approach things a little differently.  Over time, we have refined our approach and designed a viable solution for both sides of the issue.

Our first point of business is to find a price range that the company is comfortable budgeting.  From here, we establish a fixed dollar amount that the employer will pay for each employee.  In some cases, there may be different dollar levels, dependent on job title.

We then work with the HR Director to establish a menu of plans.  Key components include doctor network and the spectrum of plan design features; HMO, PPO, and HSA are common acronyms on this menu.  With new options available every year it is critical to educate both employer and employees to help them choose individual plans.

When current or perspective employees are looking at the benefits package, they should see a spreadsheet detailing each plan and cost. This simple method of education allows the employees to take more control over their health insurance; benefiting them, and their employer.

Changing benefits, to combat increased costs, is never easy.  However, employers who embrace the change will find solutions that work for them and their employees.  At Riviera Insurance, we are dedicated to making the most of your insurance investment in the face of rising costs.

We are here to help you design and implement an effective employee benefits plan.  Please let us be of service.