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5 Mistakes of Not Using Software for Health Plans

Health benefits often feel like the final frontier for innovation. When we consider how much our phones, businesses and schools have changed in the past 10 years, it seems silly that the way we look at health plans has remained largely static. Or, so it seems? 

Actually, there have been some incredible innovations over the past 6 years when it comes to healthcare. Health plan software is one of the top innovations available to leaders who want to gain control over a seemingly uncontrollable, increasingly expensive and essential part of their budget. However, there are some major pitfalls and missed opportunities for employers if they opt against using health plan software to help manage this area.

Today we’re going to walk through the top 5 mistakes of not using software for health plans:

1. Strategy

An employee’s income is typically set to meet their current needs. However, a health benefits plan is often provided by an employer to help them prepare for what may come in the future. Most of the time, when it comes to traditional group health benefits, employers aim to find the best product for the cheapest price. 

This, however, is one of the top mistakes you can make by not using software to help guide your decision.  

With traditional health insurance, the employer will inevitably end up selecting a one-size-fits-all solution. The problem, though, is they will also end up overpaying for a product that only fits some of their team. (Healthcare is personal, afterall, so plans should be, too!)

But that doesn’t seem very strategic, does it?  

This is the mistake software helps to solve! Health benefits software allows you to focus on the investment dollars going toward health benefits rather than the products themselves. Without software, it’s nearly impossible to work through the numerous variables necessary to make a comprehensive choice. Health plan software, however, can help you pinpoint your goal and custom design a strategy to fulfill it.

2. Budget

Another mistake that employers make is believing the misnomer that because something is more expensive, it’s automatically “better”. And while this can be true, it is becoming less and less legitimate. For example, many times a PPO plan is dramatically more expensive, while only offering minimal more value — and often having a much worse total risk factor.

When you forgo health benefits software, you run the risk of over-budgeting. Using the right software helps to avoid this major mistake. Make a strategy and define your budget accordingly. This gives the employer more control over their budget while still providing quality benefits to their team. 

3. Compliance

Good employers want to know and understand their people personally so that they may lead them more effectively. However, when it comes to healthcare, compliance and privacy cannot be taken lightly. Major legal ramifications can occur when proper protocol is not followed for human resource compliance, under laws such as ERISA and others.

Health plan software helps avoid the mistake of gathering personal information from your team in a noncompliant way

Software allows the employer to gather and automatically analyze relevant employee data to ensure that they are providing necessary medical coverage and services to their employees — without seeing who actually needs those products or services.

Using health plan software allows employers to compliantly provide healthcare services to their team and offer the care they need for a price the organization can afford.  

4. Security

In the same vein of compliance, it’s also important to consider the safety of your employees. HIPAA compliance, ERISA compliance, ACA compliance, etc. are all security issues. The way in which this personal data is handled is foundational for providing employees the security they deserve.

The traditional annual open enrollment season typically involves physical forms and papers being filled out by employees, placed in folders, manually inputted and filed away. Each step of that process presents a possible threat to security. 

Health plan software helps employers avoid the tremendous security risk posed by this old-school system of handling private, personal information. 

The right software not only provides a more secure way for administrators to gather necessary information, but it also does it more efficiently! Employees are able to complete forms and surveys in a fraction of the time, all in the privacy of their own homes and via encrypted submissions.

5. Experience

Not only is traditional insurance an expensive, one-size-fits-all approach to health benefits, the reality is that it seldom comes with a good user experience either. For employers, plan selection is time-consuming and overwhelming. For employees, plan usage is limiting and expensive. What’s more, 96% of Americans don’t even understand the most basic health insurance terms, just adding to this convoluted system.

Without the help of health benefits software, it’s easy to mistake a “good” product as more important than an excellent health benefits experience.

The best experiences in life always start with personalization. Software allows the employer to increase the products available to their team from just 1-3 options to over 15 choices, sometimes up to even 50! Health plan software also provides filters and sorting to help employees evaluate the best options to meet their unique needs. What was formerly a complex process of sorting through plan details is suddenly a smooth, easy shopping experience for both the employer and employees.

Are you making any of these mistakes?

Our expert team of health benefits consultants at Remodel Health would love to help you evaluate the full spectrum of options available to help you cut costs and care well for your team. Our innovative software provides exclusive solutions to employers, offering increased compliance and security, and ultimately, an improved employee benefits experience.

Get started by taking our interactive quiz to find out which alternative health benefit solution may work best for your team. Or, get connected with us directly by emailing [email protected] and schedule your free, full evaluation. It’s time to start rethinking employee health benefits!

Important Notice:  Remodel Health does not intend to provide specific insurance, legal, or tax advice. Remodel Health always recommends to consult with your own professional representation to properly evaluate the information presented and its appropriate application to your particular situation.