How to make the most of employer benefit plans
Employee benefit packages — the mere sound of the words is probably enough to put most people to sleep.
It takes a lot of time and energy to read the whole thing, especially when it's a lot of policy-speak language and incredibly boring for most to read.
It's vital, however, that employees understand what valuable information is contained within them.
“There are incredible resources in these, but it is hard to take it all in when you read it,” says Wendy Macintyre, of Stratford, P.E.I.
Macintyre is a chartered professional in human resources who operates resolvehr, where she consults, offers recruiting assistance and HR training for small- to medium-sized businesses and not-for-profits in Atlantic Canada.
WHAT IS USUALLY INCLUDED?
Your employer likely doesn't know everything in the policy, so ask the insurance provider, advises Macintyre. It's the insurance company's job to explain this — they get paid the insurance premiums to provide the benefits and help people understand them.
There are a few basic things employees should know about their benefits packages, she says.
Ask whether or not your package includes Employee Family Assistance Programs (EFAP) to cover other family members.
If you have an Employee Assistance Program (EAP) through your benefits, ask the insurance company if the things you want are covered and who can access it: you, a partner, or children.
Find out your co-pay amount on medications, treatments such as massage, hospitalization or ambulance service.
Find out how many times a year you can get your teeth and eyes checked and treatments done, as well as eye correction glasses/lenses purchased.
LONG-TERM DISABILITY
Macintyre says dental and eye coverage and life insurance are included in most plans.
Medications, depending on the employee group and the costs, can vary.
EAPS and long-term disability (LTD) coverages are not cheap, so aren't always offered.
LTD is a huge benefit but some people don't want it because it is pricy and feel that employees should be paying 100 per cent of the premiums so that if they end up using it, they are able to get the full benefit, says Macintyre.
Workers compensation insurance is specific to the workplace, explains Macintyre. People don't think of it as insurance, but employers pay the premiums and employees can access it.
Workers compensation insurance is a no-fault insurer and is required for all employers.
CONTRIBUTED
Here, risks are shared across all employers so that premiums stay relatively stable and reasonable, although they are affected by the risks associated with the industry the company is in, as well as the company's safety rating, which can be negatively impacted if it has many claims, she says.
HEALTH SPENDING ACCOUNTS
Health spending accounts are confusing, in part due to their flexibility, says Macintyre.
Some employers will cover things for proactive health, such as gym memberships. The employer has so many options — and hopefully, they get input from their employees on what the funds are spent on.
Some organizations administer them in-house, but Macintyre believes it's better to have insurance professionals administering them.
EMPLOYEE ASSISTANCE PROGRAMS
Macintyre has never heard from an organization that their employees are fully using the benefits of EAPS. In fact, she says, some organizations discontinue them because they are so underused.
These EAPS may include counseling, sleep programs or aids, healthy eating advice, workplace coaching, family mediation services, massage and many other things.
There are so many things it could be used for that Macintyre says calling the provider to ask if it's included when you think of something is wise.
Employers can encourage employees to access the services, especially if an employee seems like they are going through some changes that counseling might help with. Or, if an employee's family is dealing with something like grief, anxiety or depression, these services are great.
“Another example I've suggested people use is if an employee is being let go the employer, accessing career transition coaching through an EAP,” says Macintyre.
SHOULD WE USE OUR BENEFITS IF WE DON’T NEED THEM?
“Using the benefits is what it is there for,” says Macintyre. “Being proactive in your health care is far more affordable than putting things off and suffering larger consequences later.”
Employees who access benefits are typically going to stay working longer and more productively because they are taking care of themselves, she says.
Having everyone use all the benefits to the max will increase the premiums, however, so use what applies to you rather than looking for a solution for a problem you don't have, she adds.
CHANGING PLANS
When deciding whether to add a family member to an employee benefit plan or to join an employer's group plan, Macintyre suggests doing some research.
Compare prices, find out if there are limitations on preexisting health conditions, and if there is open enrollment at first but it will be closed later.
Find out if the rates are likely to go up, she says, adding they often do when they are personal plans independent from group plans.
If you have your own plan and get the opportunity to go with an employer's group plan, think about what could happen if you take the company one but later leave that organization. Will you need an evaluation to get an independent plan again and will things be excluded then?
Overall, when it comes to employee benefits, think about the long term, adds Macintyre.