Voluntary BenefitsPresented by: Stephen Ivey, Director

of Voluntary Benefits

Best Practices forCommunication and Enrollment

About the Webinar

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About Our Presenter

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Since 1994, Steve’s been in the voluntary benefits industry and advocates a professional, consultative approach that encourages suitability over carrier-specificity. Steve is revered as a voluntary benefits expert among his peers and has been awarded as such. Steve stays involved with the insurance and financial community through his National Association of Insurance and Financial Advisors membership and currently serves on the Greater Chesapeake Charitable Foundation Board.

• State of the Industry

• Essential vs. Fringe

• Communication Studies

• Different strategies

• Millennials

• Integration

• Technology

Agenda

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• 39% of employees in 2016 were enrolled in an HDHP

• 43% of employees in 2017 were enrolled in an HDHP

• 72% of large employers (500+ employees) are expected to offer an HDHP plan in 2019

• Lots of discussion on plan risk management, not as much on EE risk management

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State of the Industry

3 in 5 workers with medical coverage report their deductible is over $1,200, including a quarter who say it is $3,000 or more.They indicate they would not have the funds available to pay for a $3,000 medical expense.

Ways Working Americans Would Pay for a $3,000 Medical Bill

Exposure to higher out-of-pocket costs threaten working Americans’ financial wellness

From a checking/savings account 44%

Make a deal to pay over time 37%

Put it on a credit card 34%

Loan from family, friend, bank, 401(K) 24%

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State of the Industry – EE Financial Risk

What percentage of large employers (500+) are expected to offer an HDHP plan in 2019?

a. 72%

b. 39%

c. 43%

d. 50%

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Question #1

• 65% are highly satisfied with their benefits package

• 59% say their benefits contribute to their financial security

• Benefits Satisfaction = Job Satisfaction• 84% with high benefits satisfaction report high job satisfaction

• Benefits Satisfaction = Job Loyalty• 74% with high benefits satisfaction want to stay with their

current employer for 5+ years

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State of the Industry

• In 2013, 41% said voluntary benefits would have little importance.

• Today, 5% of respondents say voluntary benefits will have little importance to their employee value propositions and total rewards strategy.

• Also, 69% believe voluntary benefits will be a very and more important component of their employee value proposition in 3 to 5 years

• For 2018, 42% of employers offered at least one of the 3 supplemental health plans, and 18% offered all three. (ACC, CI, HI) Voluntary benefits now

viewed as essential, Willis Towers Watson survey finds

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Essential vs. Fringe

Percentages of employers offering these supplemental health benefits, per PWC study in 2017.

Other voluntary benefits included in the study are identity theft, pet , long-term care, student loan programs, and financial wellness programs.

Voluntary benefits are generally considered an integral component of an employee benefit strategy

2016 2017 2021

Accident 46% 52% 76%

Critical Illness 43% 48% 71%

Hospital Indemnity

24% 27% 50%

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Essential vs. Fringe

In 2017, what percentage of employers said voluntary benefits will have little importance to their employee benefits strategy?

a. 41%

b. 42%

c. 69%

d. 5%

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Question #2

• However, 1 in 2 say the benefits information they receive is confusing

• 79% feel their employer could do more to ensure they understand their benefits

• 90% of employees say they are more likely to enroll in benefits they feel educated about

• 65% look at information outside of work hours

• 90% review with spouse or partner Lincoln Financial Group publication including “Re-inventing the enrollment experience”

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Enrollment Studies (LFG)

• More than 70% of employers surveyed believe voluntary benefits improve worker morale and job satisfaction

• Nearly 60% of employees prefer to buy health benefits at work

• 50% of employees prefer to buy life insurance through work

• Voluntary supplemental sales grew 4% last year, fifth straight year of growth

Growth of the Worksite Marketplace - MetLife

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Enrollment Studies (LIMRA)

1. Want help• stressful decision• confusing process (49% for ages 18-34)• 4 out of 5 feel the company has their best interests at

heart

2. Don’t know how to calculate the full cost of health care• do not understand employer contribution

3. Don’t know enough about HDHP - 65% said they were either risky, disappointing or confusing

What employees want from the open enrollment experience

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6 Insights to Employee Preferences (Overall Benefit Communication)

4. Like having choices

5. Trust employer’s communication

6. Want info in a variety of channels• 60% - electronic• 52% - print• 32% - personal consultation• 30% - live group meetings• 22% - benefit fairs

What employees want from the open enrollment experience

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6 Insights to Employee Preferences (Overall Benefit Communication)

What type of communication channel should be used in helping employees to understand the benefits offered during open enrollment?

a. Live group meetingsb. Electronic information via email, intranetc. Benefit counselorsd. Benefit fairse. All of the above

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Question #3

1. Create a campaign – think of OE as a marketing campaign

2. Tailor-made messaging – use information to tailor messages to different audiences

3. Revisit, re-evaluate, remember – get feedback to improve the process

4. Campaign early – start well before the actual open enrollment dates

5. Give the information time to breathe – have a process that is not overwhelming

6. Engagement is the key – active enrollment vs. passive enrollment

7. Talk the talk – communicate effectively about benefits with multiple generations across different platforms

8. It all comes together – holistic message

Best Practices for benefits enrollment

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8 Tips for Benefits Enrollment

1. Create a campaigna. Announcement lettersb. Flyers, posters, brochuresc. Videos (carrier or 3rd party) d. Emails (can have embedded

videos)e. Timeline for each that works

with OE published timeline (can start 90 days out)

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8 Tips for Benefits Enrollment

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8 Tips for Benefits Enrollment

2. Tailor-made messaginga. Emails based on demographicsb. Accident plans – millennials, familiesc. Critical illness plans – older ages, 40+?d. HI plans – examples of how it costs with and

without supplemental coveragee. Mobile applicationsf. Decision support tools

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8 Tips for Benefits Enrollment

3. Revisit and re-evaluatea. Evaluate campaignb. Evaluate messagingc. How to make the process better

4. Campaign earlya. Timeline should include pre-enrollment strategy prior to

OE – can be 4-8 weeks before the startb. Voluntary timeline should be written out with who does

what by whenc. Employees need to see messaging and information

multiple times

Using best practices for benefits enrollment, why would you provide examples and information for different demographics?

a. The plan would be cheaper for younger employees.

b. To help a specific age group understand why the plans work for them

c. To discuss best plans with family members where applicable

d. Because some people do not have access to mobile phones or computers

Best Practices for benefits enrollment

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Question #4

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8 Tips for Benefits Enrollment

5. Give the information time to breathea. Communication throughout the year – an extension of

pre-enrollment processb. Needs based communication for supplemental health

plans (claim examples for ACC, CI, etc.)c. Wellness benefit reminders (a great, but under-used

benefit)

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8 Tips for Benefits Enrollment

6. Engagement is keya. Active enrollment vs. passive enrollment (doesn’t

necessarily mean making new elections or lose benefit)b. Reasons for active enrollment:

• New benefit• Compensation statement• Confirmation of elections and deductions

c. Positioning of supplemental health benefits on the enrollment platform – right after medical is preferred versus at the end of the elections

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8 Tips for Benefits Enrollment

6. Engagement is keyd. Decision support tools – on the website with the benefit

electione. Group meetingsf. Benefit counselors – how to use, per diem or salaried vs.

commissioned, outside firm or internal personnelg. Kiosk enrollment supporth. Hall center support

No single way is the best, but a multi-faceted approach generally yields the best education and the best results.

7. Millennialsa. Make it easy, be brief, entertaining and

authentic with clear directionb. What’s in it for me? Consider offering

treats, techy giveaways to boostattendance if not mandatory.

c. No paper or print guides for this group. They prefer electronic information – could be on company website, emailed to them or available through notifications on company social media.

d. Send text messages with reporting featurese. While we work with this insurance

terminology daily, most employees do not f. Be sure to reword the insurance jargon!g. Make everything available 24/7

Recognize the values that differ from their generational predecessors. Recommendations to have a successful open enrollment with millennials

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8 Tips for Benefits Enrollment

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Question #5

What is one way to hold a successful open enrollment for millennials

a. Hold several long open enrollment meetings to give time for proper plan selection

b. Provide print guides for the group to read through during down time

c. Make everything available 24/7 in an electronic format, including on social media

d. Make meetings mandatory

Needs based consultation

Carrier and Plan Design

Selection

Employee Education

Enrollment Meetings

Administration and Billing

Dedicated Voluntary Account Manager

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8 Tips for Benefits Enrollment

8. Our integrated model approach

• While accident and hospital plans can be almost universally built in a platform, critical illness can be tricky

• For example: age banded rates vs. issue age rates. Tiered rates with age bands. Non-linear rate structure. Late entrants and medical underwriting. Make sure.

• Use decision support tools, videos, flyers, library of forms, co-browsing for enrollment counseling

• Place supplemental health plan options right after medical, whole or universal life right after voluntary term life in the decision making process.

All platforms are not the same and voluntary carriers have their preferred technology partners

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Technology Tidbits

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