HEB2 Functional Approach To EE Benefits

Question 1

How to apply the functional approach

Answer 1

1. Classify employee needs (Medical, DI, death)
2. Classify Categories of Persons (active, dependents, retired)
3. Analyze benefits presently available
4. Determined gaps in benefits and any overlapping benefits
5. Estimate costs (or savings) of each recommendation
6. Evaluate methods of financing
7. Consider cost-savings techniques
8. Decide on appropriate benefits and financing methods
9. Implement changes
10. Communicate changes to employee
11. Periodically reevaluate

Question 2

How to apply the functional approach

Analyze benefits presently available and consider cost saving techniques

Answer 2

1. Analyze benefits presently available
   
   1. 1 type of benefits
   2. 2 level of benefits for each categories of needs
   3. 3 probationary period create gaps in coverage
   4. 4 eligibility requirements
   5. 5 employee contribution requirement
   6. 6 flexibility available to employee
   7. 7 actual employee participation
2. Consider cost-saving techniques
   
   2. 1 changes in benefit design
   3. 2 reduction in benefit
   4. 3 flexible benefits
   5. 4 managed care
3. 5 utilization review
4. 6 disability management
5. 7 wellness program
6. 8 change insurer
7. 9 self-fund

Question 3

Advantages of the functional approach

Answer 3

1. Employee benefits very significant element of the total compensation
2. Employee benefits a large labor cost for employers
3. Determine overlapping benefits and gaps in benefits
4. Keep benefits current, competitive and in compliance with regulations
5. So various benefits programs can be integrated properly