Module 4 Cost Within Health And Welfare Plans Flashcards
When determining cost of benefits plans what are some financial parameters to consider?
Cost sharing policy
Short term, strategy, steering employees
Long-term strategy, cost containment features
Impact on employees and their dependents use utilization patterns and educated assessment of how employees might react to the plan
When pricing a benefits strategy, what are the nine process considerations?
Alignment of business and HR strategy objectives
Current cost subsidies
Collect financial data
Cost each option
Modify cost for estimated selection or change
Enrollment effect consider effect of lower cost plans (adverse selection)
Estimate employer costs
Determine employee contributions
Use data to provide a cost projection
In regard to benefits subsidies, what is an experience rating?
Experience rating is a tool that insurance companies use so they can spread the risk their undertaking throughout the pool of companies being covered
The insurance company compares employers and their history record to an average employer in the same industry
Evaluating pricing system durability, how is durability evaluated
Model potential claim and enrollment scenarios and compare to the resulting second year pricing to test durability
Assess messages - attraction and retention targets, employee, empowerment, equity among classification and employee groups, steer to mid or long-term strategies
In the pricing process, what’s considered to be the starting point for employers?
Identify and collect data
Estimate the cost of each flex option
Determine the relationship between business objectives and HR strategy
Determine pricing for life benefits
Determine the relationship between business objectives and HR strategy
Which of the following would be a question to ask to clarify an organizations position or philosophy on subsidies?
To whom does the organization believe it has a primary commitment
Can a complex pricing structured be effectively communicated to employees?
Financial and technical resources will an organization commit towards pricing
What types of approaches does the organization have the ability to administer?
To whom does the organization believe it has a primary commitment?
What actions are involved with evaluating the durability of a proposed pricing system?
Analyze claims administration and cost information data
Model potential claim and enrollment scenarios and assess communication messages
Conductor request for proposal with prospective service providers
Compare your pricing to those practices of your direct competition
Model potential claim and enrollment scenarios and assess communication messages
