Harmony Roze Saas HR Harmony Roze Saas HR
  • HOME
  • About Us
    • Why Choose Us
    • Our Partnership
    • Contact Harmony Roze
    • Our Mission
  • Harmony Roze Blog
    • Onboarding
    • Coronavirus Resources
    • Strategy
    • Webinars
    • In The Press
Harmony Roze Saas HR Harmony Roze Saas HR
  • HOME
  • About Us
    • Why Choose Us
    • Our Partnership
    • Contact Harmony Roze
    • Our Mission
  • Harmony Roze Blog
    • Onboarding
    • Coronavirus Resources
    • Strategy
    • Webinars
    • In The Press
Nov 16

Bidding Out A Health Plan: Pros and Cons

  • November 16, 2020
  • Insurance
Photo by marchmeena29 from Getty Images ProPhoto by marchmeena29 from Getty Images Pro

Employer-sponsored insurance plans are widely acknowledged as a valuable employee benefit, but also can be quite costly for employers. In an effort to manage tight budgets while still staying competitive in their recruiting and retention efforts, employers are always on the lookout for sensible ways to trim costs from their employee health plans. Some employers are starting to bid out their insurance plans each year in the hopes of finding the most competitive cost. To help you decide, we’ve examined the pros and cons of this strategy.

Pros

  • Bidding out insurance plans each year (or at least relatively often) can be a great strategy for encouraging competition and striving for best price.
  • When employers renew the same plan year after year, they may miss out on other options that might be better suited for their company.
  • Initiating an openly competitive bidding situation gives the upper-hand to the employer—providers know they are competing equally for the business, so they will present the company their most competitive offer.
  • Studies have suggested that companies can save money simply by putting their plans out to bid more often.
  • Because small companies have a smaller workforce and HR department, putting their plans out to bid every year can be an efficient cost-saving mechanism for them.
  • Though it may be unwise for larger companies to put plans out to bid every year, those with numerous plan options can realize substantial cost savings from bidding out each plan every few years.

Cons

  • Switching plans too often can create employee dissatisfaction and affect morale. Employees may be forced to switch health care providers, adapt to a new payment method or settle for a decrease in their benefits. This can be frustrating and confusing. It is important to understand how a change will affect your employees.
  • Many plans work best when allowed to run for multiple years, so switching too soon may negate potential future value the employer could have realized.
  • For larger companies, implementing the sweeping change of a new health care plan is a significant undertaking; changing plans too often may be unreasonably burdensome on the HR department.
  • Putting plans out to bid with the goal of finding the lowest cost can be problematic if the process ignores the overall value and benefits of the plan. A good plan should balance cost and value for both the company and the employees—aggressive price bidding situations often don’t reflect this goal.

 

There are many pros and cons to bidding out a health plan for your organization. Every company and every employee is unique in their specific needs. These pros and cons are the perfect tool to help you weigh out your options and make the decision that is most effective for your organization.

Connect With Us

  • Facebook
  • Twitter
  • Pinterest
  • Google+
  • LinkedIn
  • E-Mail

Leave a reply Cancel reply

You must be logged in to post a comment.

Partner News

New beginnings: The What Works blog is moving
18 May 2022 - Keen Hahn
The What Works blog is moving - see the details about our new home.
3 tips for HR leaders: How to get your HR technology projects approved
12 May 2022 - Jeannine Betts
Struggling to get your HR technology plans approved? Here's how to build your business case.
Rise up and become your best self at the spring HR & Payroll eSymposium
3 May 2022 - Keen Hahn
The spring HR & Payroll eSymposium is almost here - and this time it's all about you.
3 remote work compliance policies you should consider
29 April 2022 - Susan Hurwitz
Making your remote and hybrid work policies permanent means catching up on the compliance impacts - here are some tips on where to focus.
Looking after yourself: 3 ways HR and payroll set a strong wellbeing example
21 April 2022 - Keen Hahn
Wellbeing at your organization starts with you - here's how HR and payroll model healthy standards.
  • Contact Us
  • About Us
  • Our Mission
  • Events

Harmony Roze Human Capital & Workforce Management suite is provided by
Carrera Lee Enterprises, Inc.
and powered by UKG Ready®

Carrera Lee Enterprises, Inc.

6080 Center Drive, 6th Floor
Los Angeles, CA 90045
—
1 Park Plaza, Ste 600
Irvine, CA 92614
—
213.433.3933
info@harmonyroze.com

© 2021 A Carrera Lee Enterprise All rights reserved.
  • Terms of Use
  • Privacy Policy
  • Careers
CDC Guidance for Isolating When Infected With COVID-19

Please enter your name and email address to receive the download link.

Name *

Email *


COVID-19 Vaccine Considerations for Employers

Please enter your name and email address to receive the download link.

Name *

Email *


Determining Whether a COVID-19 Case Is Work-related

Please enter your name and email address to receive the download link.

Name *

Email *


HHS Renews COVID-19 Public Health Emergency

Please enter your name and email address to receive the download link.

Name *

Email *


Navigating Flu Season During the COVID19 Pandemic - Infographic

Please enter your name and email address to receive the download link.

Name *

Email *


OSHA3990 Guidance on Preparing Workplaces for COVID-19

Please enter your name and email address to receive the download link.

Name *

Email *


Cold, Flu or COVID-19 Infographic

Please enter your name and email address to receive the download link.

Name *

Email *


Get More Information

    Let's talk Numbers

    Order of Play

    1. We will email you the ROI toolkit.
    2. Review the eBook
    3. Plug in your numbers.
    4. We will reach out and give your our numbers.
    5. See the benefits!

    ROI Toolkit

    ROI Toolkit


    This toolkit contains an eBook explaining specific areas in which you can expect to see savings in your organization after having automated your HCM and Workforce Management processes.  The toolkit also contains an Excel template to help you start documenting and calculating your expected savings.

    Get the ROI Toolkit

    Where shall we send the download link?

    I confirm that I have read and agree to the Privacy Policy.

    Book a Demo

    Get More Info