Workers should consider enrolling in wellness offerings as a way to improve health and reduce medical spend CHICAGO, Oct. 1
CHICAGO, Oct. 1 /PRNewswire-FirstCall/ -- With 2009 just around the corner,
organizations nationwide are conducting their annual benefits enrollment
process, which gives workers a chance to enroll or change their enrollment
status in their employers' healthcare and financial protection plans. While
the enrollment process may appear to be just another administrative chore, the
choices workers make during this time will impact their health care and
financial protection throughout 2009, and beyond, according to Aon Consulting
Worldwide, the global human capital consulting organization of Aon Corporation
(NYSE: AOC).
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"The annual enrollment process is designed for workers to maximize their
healthcare dollars in the coming year," said Lynn Devany, vice president with
Aon Consulting. "While this process is always important, it's met with
greater significance this year, given the economy and the need for many to
stretch their dollars as much as possible. Employees need to think through
their options and related expenses, and balance that with their needs and
expectations for the upcoming year. The tools and materials provided by
employers will go a long way toward making educated decisions."
The following will help workers navigate through the annual enrollment
process so they can be prepared and make informed enrollment choices.
1. Determine your healthcare needs up front: A good indication of how you
and your family will utilize healthcare coverage in 2009 is to examine your
current usage. Look at how you currently use healthcare for routine types of
services, such as preventive and wellness care, annual physicals, office
visits and exams. Then, factor in those healthcare services you expect to
need in 2009 -- such as maternity care or scheduled procedures. This will
provide a picture of how much care you and your family are likely to require
in the coming year.
2. Know your risk tolerance: When offered a choice of healthcare plans, it
is important to determine your risk tolerance around the costs for coverage
and for care. Ask yourself if you are more comfortable paying a higher fixed
cost per-paycheck for coverage to pay less out-of-pocket for care and
services. Or, do you prefer to pay less up front, but more when you need
healthcare services. Asking questions like these will help you understand how
to invest your healthcare dollars during the year.
3. Make the most of tools and resources: Take time to carefully review the
annual enrollment communication your employer provides and share it with your
family. Attend employee meetings and ask human resources personnel when you
need help to understand your healthcare choices. Many employers now offer
personalized online modeling tools where you can input your own healthcare
information, services and costs and see how they are calculated under each
plan option offered. Doing some homework up front can help you make educated
enrollment decisions that really pay off.
4. Consider other coverage options: If you have other healthcare coverage
available -- through your spouse's employer, for example -- you should compare
his/her plan choices and costs to your own to determine which is right for you
and your family. If you're considering choosing coverage under both plans,
make sure you understand how the two plans coordinate coverage. In some
cases, by choosing coverage under two healthcare plans, you may end up paying
for coverage you don't need.
5. Increase your tax savings: If offered, take advantage of your
employer-sponsored Healthcare Flexible Spending Account (FSA). An FSA has a
tax advantage that allows your money to go farther when paying out-of-pocket
for healthcare expenses during the year.
6. Protect your family's finances: Remember that annual enrollment means
more than just making healthcare decisions. Benefit plans, such as life,
accidental death and dismemberment and disability insurance, can help protect
you and your family financially in the event of a death, serious injury or
illness. To help determine the type of coverage you need, ask yourself how
your family would meet their immediate and long-term financial obligations
were you to pass away or become injured or ill. Then, consider your personal
finances and the financial protection plans available from your employer. By
assessing your financial needs and reviewing your available benefit plan
options, you can choose coverage that will help to ensure that your family and
finances are protected.
7. Don't take "passive enrollment" passively: The best way to ensure that
you and your family receive the healthcare and financial protection coverage
you want and need is to review and evaluate your options every year. While
your employer may offer "passive enrollment" -- where your current coverage
rolls over into the next year -- it's important for you to take the time to
examine your healthcare and financial protection needs for the coming year and
decide what benefit plan choices help you meet those needs for 2009.
Trends in Wellness Programs
Another key consideration for workers during this annual enrollment season
should be wellness programs, according to Aon Consulting. Employers today are
recognizing the link between employee lifestyle behaviors and medical spend,
and are responding with wellness programs such as disease management and
smoking cession. These programs focus on the root causes of chronic
conditions to reduce health risk factors among employees and dependents, which
lead to a lower rate of increase in healthcare costs.
"Many organizations have invested significant resources in wellness
initiatives to improve workforce health and productivity, and reduce long-term
healthcare costs," said John Zern, U.S. Health & Benefits Practice director
with Aon Consulting. "When comparing health plan options, employees should
take into account preventive care coverage, and the availability of wellness
programs. These clearly provide returns in the form of better health and can
be accompanied by cash incentives-creating an immediate financial return."
According to Aon Consulting's 2008 Benefits & Talent Survey, the top five
wellness programs employers implemented this year include:
-- Promotion of exercise/physical activity -- 68 percent
-- Disease management programs -- 60 percent
-- Health risk appraisals -- 48 percent
-- Biometric screening -- 47 percent
-- Telephonic health care coaching -- 46 percent
To motivate workers to participate in these programs, employers offer
incentives. For example, 22 percent of organizations offer non-monetary
incentives such as gift cards, merchandise and a raffle, and 21 percent offer
other awards such as wellness credits and gym membership reimbursement.
Nearly 10 percent offer a premium reduction.
Information on Aon Consulting's annual enrollment solutions can be found
by clicking on http://www.aon.com/results.
About Aon Consulting
Aon Consulting Worldwide is among the top global human capital consulting
firms, with 2007 revenues of $1.352 billion and 6,335 professionals in 117
offices worldwide. Aon Consulting is shaping the workplace of the future
through benefits, talent management and rewards strategies and solutions. Aon
Consulting was named the best employee benefit consulting firm by the readers
of Business Insurance magazine in 2006, 2007 and 2008. For more information
on Aon, please visit http://www.aon.mediaroom.com.
About Aon
Aon Corporation (NYSE: AOC) is the leading global provider of risk
management services, insurance and reinsurance brokerage, human capital and
management consulting. Through its 36,000 colleagues worldwide, Aon readily
delivers distinctive client value via innovative and effective risk management
and workforce productivity solutions. Our industry-leading global resources,
technical expertise and industry knowledge are delivered locally through more
than 500 offices in more than 120 countries. Aon was named the world's best
broker by Euromoney magazine's 2008 Insurance Survey. In 2008, Aon ranked
highest on the Business Insurance ranking of the world's largest insurance
brokers based on commercial retail, wholesale, reinsurance and personal lines
brokerage revenues. Aon also was ranked by A.M. Best as the number one
insurance broker based on brokerage revenues in 2007 and 2008, and was voted
best insurance intermediary, best reinsurance intermediary, and best employee
benefits consulting firm in 2007 and 2008 by the readers of Business Insurance.
For more information on Aon, log onto http://www.aon.com/.
For more information, contact:
Joe Micucci
312-381-4786
joe_micucci@aon.com
SOURCE Aon Corporation
