Companies should explain changes in health benefits

Due to skyrocketing health care costs, most U.S. employers are preparing to communicate major health care benefit changes to employees this enrollment season. Hewitt Associates, a global human resources outsourcing and consulting firm, offers 10 tips that can help employers effectively communicate to their employees about increased cost sharing, higher co-payments and deductibles, and new consumer-oriented health plans.

"Cost pressures have forced many employers to plan significant changes to their health care benefits," said Wendy Rhodes, human resources outsourcing communication practice leader at Hewitt Associates. "Leading organizations can use the annual benefits enrollment period as an opportunity to tell employees why the changes are being made, and what those changes mean. Most importantly, because many of the changes involve new plan designs and more cost shifting, wise decision making by employees will be more important than ever."

Hewitt recommends the following 10 tips to help companies develop an effective communications plan that encourages involvement in elections and makes coverage decisions easier to make.

Develop measures for success. A communication strategy is incomplete without measures for success. Before any changes can be communicated, be clear on what you want to accomplish. Is the goal to encourage enrollment in different health plans, measure a change in employee behavior, or refine employee attitudes? Define your strategy around that goal.

Get their attention. Health care benefits are personal. Employees will be engaged in your messages if you communicate properly. Acknowledge that many employees won't read enrollment materials. Think of creative ways to reach them that differ from the way you've communicated before. Hewitt has found that a combination of printed materials and Web access at annual enrollment provides the most effective communication approaches. Remember it's the impact of the communication that counts and not how much money you spend to communicate.

Develop key messages and stick to them. Create key messages and consistently repeat them during the 2004 annual enrollment season. This not only helps reinforce the messages and deepen understanding among employees, it also reduces the risk of confusion.

Keep it simple and straightforward. Address why the company is making a change, and provide the context. Clearly explain what the change is, when it takes effect and how it will affect employees. When possible, provide specific examples of the changes for employees and retirees.

Don't sugarcoat it. The worst thing you can do is avoid discussing difficult messages. Be honest and direct when communicating change, particularly when costs are increasing or health plans are changing.

Communicate early and often. Employees need time to "soak in" the information and shouldn't be expected to do it quickly. Help employees understand that a health care cost crisis is driving the health plan changes. Cite data from surveys on rising health care costs, or cite recent articles in newspapers or magazines on the topic of health care.

Realize employees may not agree. Although there has been so much media attention paid to rising health care costs and their effect on employers and employees, don't be surprised by employees' reluctance to agree with, accept or approve of the changes.

Get feedback. Think about how to solicit input from employees and retirees on the changes being made and how they would like the news to be communicated.

Set expectations for the future. One of the most important messages an employer can deliver is, "What's next?" Given the current health care environment, it's unlikely that any changes made for 2004 will be the last set of changes, so future expectations need to be set with the employees and retirees.

Communicate on an ongoing basis. Communicate about your health care strategy and costs throughout the year and not just at enrollment time. Particularly in this challenging environment, it's important to establish consistent communication with employees and retirees, providing them with updates on a regular basis.

"When it comes to health care coverage, employers can never communicate too much or too often, especially given that health care costs will continue to increase at a double-digit pace for the foreseeable future," Rhodes said.