Once your corporate health plan is in place, it can be tempting to 'set and forget'. However, in the ever changing world of insurance, this isn't an option if you want to ensure continued return on investment (ROI).
In this article, we discuss the factors that influence value for money when it comes to corporate health insurance. So, when's the right time to review your plan options?
1. If there are reforms to private health insurance
Recent years have seen substantial reforms to private health insurance in Australia, making 2019 the perfect time to check whether you're still getting the best deal possible.
Among the most important changes from a corporate point of view are:
Not all health funds adopt reforms equally, so ensure yours is still offering the best value.
Categorisation of health products
On April 1, 2019 four categories of private hospital insurance came into existence – basic, bronze, silver and gold. This initiative aims to make insurance more understandable for the everyday consumer by directly demonstrating what is or isn't covered by a specific policy.
As a result, employees will be able to better scrutinise corporate health plans to ensure they deliver a high standard of cover.
Better access to mental health benefits
Every year, 20 per cent of the Australian population experiences mental illness, according to the Victorian government. Thanks to the private health insurance reforms, since last year waiting periods have been eliminated for those who want to upgrade their policies to access mental health benefits.
Changes to maximum excesses
Consumers can now opt to accept higher excesses on their health policies in return for decreased premium payments. In companies that offer excess funding as the means of providing corporate health insurance, this has serious benefits from an employee point of view.
While the recent raft of reforms is particularly extensive, smaller changes to private health insurance in Australia happen on a regular basis. Not all health funds will adopt non-compulsory reforms equally, so keeping up-to-date with amendments to the private health insurance system, therefore, vital to understanding your plan and ensuring that it's still the best option for your business.
2. If your business restructures
Another important time to think about changing your corporate health insurance plan is if your business goes through a restructure. This could be due to business growth allowing for greater investment in health insurance, or a dip in revenue prompting you to rethink your outgoings.
No corporate health plan should be inflexible, and your existing cover ought to have been tailored to your business' circumstances at the time of purchase. If the status quo regarding personnel or available capital changes, however, that plan structure may no longer be the most appropriate.
For example, if your business is expanding you might want to consider upgrading the cover you offer from partially subsidised to fully subsidised. This takes more financial pressure off your staff and acts as a reward for their hard work.
You're paying for corporate health insurance to benefit staff, so their opinions matter.
3. If it's not meeting staff needs
If no one is enrolling in your plan, or there's consistent feedback that it's not meeting employee requirements, that's another indication that you need to review. Ultimately, you're paying for corporate health insurance to benefit staff, so their opinions matter.
Your business should be reaping the benefits and ROI of offering a corporate health plan, which include:
- Attracting top talent: Nearly 60 per cent of respondents to a Glassdoor survey said that job perks were among the most important considerations for accepting a job offer.
- Staff retention: Once you've brought great staff on board, you need to hang onto them. An Aflac report shows that staff who feel their firm gets benefits right will be less likely to look for a new role in the next 12 months.
- Reduced staff sick days: Absenteeism costs the Australian economy $44 billion annually, according to HR Advance. However, if you offer corporate health insurance to your staff, they can get the medical treatment they need faster. This could speed up their return to work, limiting negative impacts on your productivity.
The advantages for both your business and your staff will only exist if the corporate plan is fit for purpose. An easy way to gauge opinions is to send out a survey to discover if your corporate health insurance policy is still working for your team, and what they would change if they could. The results of this assessment will indicate if now is the time to look at overhauling your plan.
How can HICA help?
If your business plan wasn't succeeding, you wouldn't stick with it simply because that's easier than establishing a new one, and the same should be true of your corporate health insurance. That said, with so many demands on your time, it's can be hard to find the time to do the research necessary for finding a suitable replacement.
This is where HICA comes in. Our experts specialise in doing the legwork, scouring the market to find the best cover based on the unique requirements of your company. We can present you with a range of options to review. Our initial consultation is conducted on a no-obligation basis, making it the perfect option for businesses who want to simply want to check if alternative plan options could be better than the one they have in place.
For more information on our services, or to book a consultation, get in touch with our team today.