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Benefit Plan Design

BENEFIT PLAN DESIGN, October 1, 2006
As healthcare costs continue to soar, premiums for health benefits reach new heights every year. Companies often face the unpleasant choice of either creating benefit plans with reduced coverage or increasing employees’ share of the costs. Some organizations have stopped offering health coverage altogether, while others have reduced their benefit offerings. One study showed that nearly three-quarters of private industry employees had no choice in medical plans, either because they were not offered a plan or because they were given only one option. Still other companies are crafting new benefit plans that aim to reduce expenses by including additional wellness programs or restructured medication payment systems. No matter what the cost-cutting strategy, benefit design will play an increasingly critical role.