The best employee benefits package isn’t necessarily the one with the most bells and whistles. It’s the one the most employees sign up for — and the choice to participate often depends on a strong benefits education and enrollment support plan that empowers employees to make informed decisions.
Voluntary benefits complement and help fill the gaps in major medical coverage with benefits employees can use for copayments, deductibles or other out-of-pocket expenses when an accident or illness occurs. These unexpected costs can be sizeable, especially with the continuing trend toward high-deductible health plans. Brokers can help their clients incorporate voluntary benefits to design a comprehensive, affordable benefits plan that meets the unique needs of their workforce and attracts and retains top talent — but if employees don’t participate in it, the employer’s investment of valuable resources is wasted. That’s why any successful benefits package needs to involve more than products and rates. It also must focus on helping employees understand their options, see how the benefits available address their unique needs, and encourage them to actively participate in their benefits program. Brokers can help their clients leverage best-in-class technology and benefit communication strategies to drive stronger participation in their voluntary benefits.
Communicate, communicate, communicate
Employees won’t sign up for benefits if they don’t understand where they might have gaps in their coverage, what benefits are available to them, and how those benefits can help protect them and their families — and nearly every plan has variations. That’s why effective benefits communication starts long before the planned enrollment period.
Brokers should consult with their clients to map out a communication and engagement plan starting at least one to two months before the enrollment. It’s important to use a variety of formats and methods to reach employees when and where they want: email, texts, website or intranet, print materials distributed at the office or mailed to employees’ homes, mobile apps, videos, and in-person or virtual meetings. The content should cover the benefits available, how they work and what they can provide. Claims scenarios that illustrate the value of the benefits and decision-support tools that guide employees in determining their coverage needs also are helpful.
Customized, personalized communications based on an employee’s life stage can help increase employees’ understanding and engagement. A young single, a married 30-something with children, and a mature employee nearing retirement have different needs and communication preferences. For example, research shows Baby Boomers are much more likely than workers in other generations to find printed materials sent to them at home or at work helpful for introducing voluntary benefits, while text messages appeal more to Generation Z employees than to other workers. Benefit fairs and videos or webinars are among the least-preferred methods for all generations. Bottom line: Employees of all generations crave easy-to-understand content that helps them choose the best options for them.
Tap into technology
Using the right benefits administration platform can save time and money through faster product set-up and integration with other systems. Brokers should be sure the platform they choose can integrate with their clients’ payroll and HRIS systems through file exchange or application programming interface technology. In addition to these critical integrations, employers also expect access to tools that enable alternative premium remittance while still remaining on a list bill environment, including automated clearinghouse debit and credit.
Brokers can build stronger consulting relationships with their clients by helping them choose the technology that best meets their needs. An Eastbridge Consulting Group survey* of more than 1,000 employers shows ease of navigation and use and ease of implementation are the most important factors they consider when choosing a voluntary enrollment platform. The ability to access and enroll in benefits from any device such as a laptop, tablet or phone; availability of decision-support tools and benefits education; ease of data transfer after the enrollment, and access to a live person to help them navigate through the system or to ask questions about the benefits offered are other key capabilities employers look for.
Brokers may be better positioned to provide the most effective technology platforms with support from their carrier partners for appropriate tech fees and commissions. 5Star Life Insurance Company (5Star Life) partners with brokers and their clients to develop a mutually beneficial solution that provides the necessary human resource management tools while offering employees a meaningful and engaging experience to help make informed decisions.
Keep enrollment active — and personal
Technology is an invaluable tool to help drive enrollment participation, but high-tech is most effective when balanced with high-touch. The market is gravitating toward online, self-service enrollments, but that could mean a significant number of employees aren’t getting the personal support they need to understand their benefits options and help them make important decisions that affect their and their families’ health and financial security. Most voluntary benefits carriers agree enroller-assisted enrollments — face-to-face or virtual — tend to drive the highest participation. As with communication, best practice is to use a variety of enrollment methods accessible when, where and how employees want.
Research also shows greater adoption of voluntary benefits when they’re enrolled on the same system and at the same time as other benefits, rather than offered off-cycle. These coverages also gain more traction when they’re placed in the enrollment system immediately following core benefits such as major medical coverage. Active enrollments are another best practice to encourage to ensure employees take time to review and make a conscious decision on each benefit option.
5Star Life is available to partner with brokers interested in helping their clients drive stronger benefits participation with enhanced communication, robust technology solutions and effective enrollment practices. Learn more about us and our commitment to making your clients’ open enrollments as successful as possible by visiting us at 5Star Life .
Earlier this morning, the US Department of the Treasury, the Department of Labor, and the Department of Health and Human Services published their anticipated tri-agency report focused on proposed rule changes affecting short-term medical and indemnity-based supplemental products. We applaud the efforts of these agencies in keeping our industry a vital part of the insurance landscape. We fully support their intent to ensure an environment that can provide clarity about employee benefits and to adopt effective consumer protections to those that we serve.
We are in the process of reading the 237-page report to fully understand the changes and their implications to our business. While the early consensus is that the changes to any Accident, Healthcare Indemnity, or specified disease products made available by 5Star Life Insurance Company are extremely limited, it is clear the regulators intend to continue discussions on these ‘excepted benefit plans’ which indicates other changes may be forthcoming. We are committed to and will continue to diligently work on our end to remain a valuable and active participant in our industry. As such, please be assured that 5Star Life remains committed to maintaining a suite of products that is both of value to the consumer and in compliance with regulatory changes. To this end, we began product development efforts earlier this year with a view of launching them ahead the effective dates of any changes to applicable regulatory requirements.
At 5Star Life Insurance Company, our goal remains to protect the consumer and deliver best-in-class service to our brokers, which, of course, means adhering to all pertinent rules and regulations. Working in partnership with you, we are confident in our ability to address all changes by their prescribed timelines which begin in 2025. We will keep you fully informed of the improvements we make that both respond to these regulations and, of at least equal importance, better serve you and your clients.
We will have more to share with once we have considered the implications of the regulations. In the interim, should you have any questions or concerns, please do not hesitate to reach out to the 5Star Life team.
Michael R. Moser
Chief Distribution and Legal Officer
Sal Campanile
Vice President, Worksite Voluntary Benefits & Group Sales
Partnership targets an enhanced customer experience with integrated HR solutions
5Star Life Insurance Company (5Star Life) announced today a new technology-based integration, through the Paylogix Tailored Market Solution, which provides 5Star Life’s customers, agents, and brokers a seamless enrollment and payment experience.
“This collaboration effort with Paylogix underscores 5Star Life’s commitment to innovation and provides customers with best-in-class administrative and end-consumer resources that are an ideal complement to our mission to provide industry-leading service and engagement experiences,“ said Sal Campanile, 5Star Life’s Vice President, Worksite Voluntary Benefit and Group Sales.
The Paylogix Tailored Market Solution simplifies voluntary benefit administration offering quick case set up, a comprehensive online enrollment site, easy case submission process, and a user-friendly online portal to support enrollment, ongoing eligibility management, and billing. This bespoke end-to-end solution adds efficiency and an enhanced digital customer experience to traditional insurer administrative systems.
“The partnership with 5Star Life exemplifies how technology-focused solutions which are standardized, automated, and simplified for providers, brokers, and end-users are critical to the success of voluntary benefits administration,” said Richard Pfadenhauer, CISSP, President & Founder of Paylogix.
About 5Star Life
5Star Life Insurance Company (5Star Life) is the life insurance underwriter of the Armed Forces Benefit Association (AFBA) member benefits and a growing provider of group and worksite voluntary insurance products. Its business model enables 5Star Life to serve the needs of a diverse clientele as an insurance provider to individuals and organizations and as a trusted partner to brokers. Headquartered in Alexandria, VA, 5Star Life is currently licensed in 49 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and Guam. 5Star Life was awarded on the Forbes World’s Best Insurance Companies 2023 list.
About Paylogix
Paylogix®, a third-party administrator, creates premium technology solutions that make voluntary benefit administration simpler and more secure, while delivering a better user experience. Paylogix serves as a trusted partner to benefit providers, brokers, and employers. Our thoughtfully designed tools to facilitate enrollment through billing and payment are automated, innovative, and secure to provide users with the data they need, when they need it.