Handling “Health Care Group plan” is one of the top 5 Human resources challenges in any organization, whether it is small-scale industry or larger organization. There are many reasons why handling healthcare group plans is difficult to manage the budget vs. satisfaction of employees. For an outsider point of view, handling healthcare seems pretty simple and easy after introductions of multitude of group insurance plans like Candor Insurance https://candor.insurance/blog/defined-contribution-health-plans-great-deal-small-businesses/. But in reality, the challenges are increasing rather getting simplified.
Common pitfalls while handling Health Care
Year after year, allocating budget for Group Health Care Plan is one of the toughest challenges due to increase in insurance cost. In addition to that, HR function needs to include additional resources to manage the health care system to manage the employee education/communication on regular basis, identifying the right healthcare professional, rules and regulation changes constantly and many more.
Individuals looking for a shift from conventional defined benefits
When it comes from employee point of view, the expectation is getting higher and differs drastically with each other due to multiple reasons like gender, marital status, individual health challenges, etc. Many employees are dissatisfied due to unnecessary defined benefits in group insurance plan which is not required for them for ex: Parents Coverage for non-parents; Spouse and Kids coverage for unmarried; limited dental care, etc. So individuals have started making a shift from defined benefit to defined contribution health plan because of its advantages.
When comes to defined contribution vs defined benefit, with the defined contribution the employee will decide what kind of health care plan he will require, easy of understanding the plan before choosing and an option to choose low and higher benefit plan which can be more beneficial for the individual and the best part is the possibility of changing the plan each and every financial year.