Learn the appropriate next step for a benefits manager to resolve the issue of controlling health insurance costs while meeting employee requests for enhanced coverage. Discover how conducting due diligence on supplemental benefits can help balance employee needs and company expenses in this SHRM-SCP Exam question.
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Question
After reviewing the results of a recent benefits needs assessment an employer must make tough decisions about controlling health insurance costs. At the same time employees are asking for enhanced health insurance. Which is the appropriate next step the benefits manager should take to resolve the issue?
Answer
Conducting due diligence about supplemental coverage before making a decision. Given rising health-care costs, supplemental benefits could be a viable component in the employer’s benefit package. However, further research about enhanced insurance coverage would be prudent before making a decision.
Explanation
The most appropriate next step for the benefits manager to take in this situation is to conduct due diligence about supplemental coverage options before making a final decision on how to balance controlling health insurance costs with meeting employee requests for enhanced health insurance.
Given the rising costs of health care, offering supplemental benefits could be a viable way to enhance the employer’s overall benefits package while still managing expenses. Supplemental insurance plans, such as critical illness insurance, accident insurance, and hospital indemnity insurance, can provide additional financial protection for employees in case of unexpected medical events without significantly increasing the employer’s health insurance costs.
However, before deciding to offer supplemental coverage, it would be prudent for the benefits manager to thoroughly research the various supplemental insurance options available, including their costs, coverage details, and potential value to employees. This due diligence should involve:
- Assessing the specific needs and preferences of the employee population
- Evaluating different supplemental insurance providers and plans
- Analyzing the costs and potential ROI of offering these additional benefits
- Considering how supplemental coverage would integrate with the existing health insurance plan
By gathering this information, the benefits manager can make an informed decision about whether offering supplemental coverage is a feasible and effective way to balance the company’s need to control health insurance costs with employees’ desires for enhanced coverage. This approach ensures that any changes to the benefits package are carefully considered and aligned with both employee needs and the company’s financial objectives.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.