Survey: HR pros consider switching insurers over need for flexibility

Dive Brief:

Nearly three-quarters of respondents in a recent Maestro Health survey of 600 HR professionals said their organization is considering leaving its healthcare insurer or plan administrator in 2022.
Ninety-eight percent of respondents said their current insurer or administrator understands the healthcare needs of their organization. But many are considering switching over issues like a need for flexibility, better customer service and greater support on member engagement.
Some of the respondent's frustration may stem from a combination of rising costs and underutilized benefits. Ninety-four percent of respondents said they anticipated their companies' medical costs will increase; 62% said they thought they would see a year-over-year increase of at least 20%. At the same time, HR pros observed underutilization. More than three-quarters said that 11-20% of their offerings went unused.

Dive Insight:

Benefits professionals frequently point to communication as an essential part of benefits administration, especially as adoption lags. But Maestro Health observed strong communication among its respondents: 94% of HR pros said they reached out to plan members "often enough," and 92% said they used personalized materials in their communications.

"The connection between high member outreach efforts and unused plan benefits suggests organizations may be paying for services their member population doesn't need, aren't aware of or potentially don't understand," Maestro Health said. The organization added that HR pros may not be receiving the best support or tools to get members' attention.

Most vendors offer materials to help employers communicate with employees effectively, one expert told HR Dive in a recent interview. These materials are especially important this year — the new year rang in a number of significant changes to benefits provisions created by early-pandemic legislation.

As employers ponder switching providers, it's important HR can lean on administrative partners for good information and sound assistance. Vendors should understand the changes that took place on New Year's Day, an expert said; if they don't, "that's a bad thing."