Employee benefits programs are now coming under pressure from spiraling inflation rates. Organizations need to control the cost of their benefits programs holistically, through better management of people risk, employee well-being and medical claims.

How employers can control benefit costs and manage workplace well-being

Benefit tactics for employer

It’s never been more important for employers to look after the health and well-being of their people. But in the current global economic crisis, the cost of doing so is growing. In these volatile times, firms must prioritize innovative solutions for tackling workplace well-being in a cost-effective manner.

 

The COVID-19 pandemic highlighted the importance of keeping employees safe, healthy and productive. But employee benefits programs are now coming under pressure from spiraling inflation rates.

 

Rising energy and food costs are exacerbating medical inflation. Medical claims are surpassing prepandemic levels, while COVID-19 continues to make many medical cases more complicated. 

As a result, ailments are becoming more frequent and lasting longer, accelerating treatment costs. Nurses cost more; doctors cost more; medicines cost more.

 

Our Health Trends report found that insurers expect medical plan costs to increase globally by 9.5% in 2022 as we face ongoing uncertainty about the future.

 

So what should employers do? We suggest taking the following three steps:

We can help you deliver benefit solutions at every step

  • Control costs and risks
  • Benefit harmonization
  • Benefits design, review and audit
  • Competitive benefits
  • Health and wellbeing
  • Simplifying program delivery

felxibility for all report cover


Health on demand 

 

Employers who show they care have an advantage to create a more resilient and loyal workforce. Modern health and well-being benefits can help.

Compport


MMB Health Trends 2023

 

Get an in-depth look at the latest medical trends and learn how you can respond to them by downloading the full report.

Example of Case Studies

 

Accurate experience-based pricing

Multinational logistics service company in Singapore

 

Darwinbox

 

Challenges

  • A major multinational logistics services provider faced a 50% renewal rate increase due to an unfavorable claims experience and deteriorating health profile in Singapore
  • Inherent mispricing as previous broker did not perform robust fact-based rate validation
  • As the newly appointed broker, MMB Marsh Benefits ability to deliver its value proposition was immediately put to the test
  • HR did not want to manage cost by reducing benefit provisions for its employees  

 

Darwinbox

 

Actions

  • Drawing on our actuarial and analytics capabilities, claims data was rigorously analyzed
  • The MMB team was then able to renegotiate pricing with the insurer based on its insights into diagnoses and incurred-but-not-reported claims

 

Darwinbox

 

Outcomes

  • MMB analysis led the insurer to revise renewal rates to reflect a better understanding of experience
  • The Employer was able to accept a 25% rate increase without any benefits reduction
  • MMB to work with the Employer to further reduce rate increases in coming years

 

Multinational investment bank harmonizes with flexible benefits

A regional merger and acquisition in China

 

Darwinbox

 

Challenges

  • Multinational acquired a competitor with 1,000+ employees located in different cities throughout China
  • Different benefits plans for different locations/ entities
  • Employer wanted to harmonize policies following the M&A, and senior management wanted to implement flexible benefits
  • Limited consistency and transparency across the region. Company wanted to decrease costs
  • Because of the merger, employees were concerned that their benefits will decrease in value

 

Darwinbox

 

Actions

  • Harmonized benefits of different entities across China
  • Feasibility study on flexible benefits program which offered the employee choice in selecting certain benefit programs
  • Designed flex plan to compensate those losing-out in the harmonization process

 

Darwinbox

 

Outcomes

  • Feasible to offer the Employer’s program, but proven systems, communications, and experience were essential

WHY FLEX

  • Benefits harmonization in M&A with a common framework
  • Optimization of administration solution using a web-based system
  • Enabled the business to position as Employer of choice and to better attract and retain talent

 

Using data and analytics to redesign benefits program

Oil and gas company in Indonesia

 

Darwinbox

 

Challenges

  • Employer with approx. 15,000 lives covered, and comprehensive onsite medical care was experiencing increasing costs and utilization related to health services provided by an onsite hospital and clinic and offsite treatment within the company
  • The Employer experienced poor predictability of medical costs, and misalignment between the company philosophy and level of coverage
  • An internal review had occurred but there was disagreement about the next steps. MMB was commissioned to review findings and make independent recommendations

 

Darwinbox

 

Actions

  • MMB conducted a detailed data review, evaluated the internal findings,  and undertook site visits to the main hospital and 3 clinics in Sumatra prior to developing a report with detailed recommendations 

 

Darwinbox

 

Outcomes

  • Provided the Employer with valuable insights into their health risks and drivers of health cost
  • Identified a mismatch of current services with business needs and areas of inefficient use of medical services
  • Highlighted inconsistencies and inaccuracies with current data capture, and provided recommendations to capture quality data on utilization, health risk and cost to provide a baseline for insurers in the future
  • Provided recommendations on re-engineering health provision including services , staffing, and funding mechanisms
  • Developed a 4-year plan to ensure timely and effective implementation  

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