Are your benefits feeling invisible?Strategies for improving benefits transparency and engagement

EXECUTIVE SUMMARY

Looking for a clear answerWhen employees don’t understand their benefits, it’s no surprise when they don’t engage with them either.

Employees want to like their benefits. They want to use them to stay healthier and improve their quality of life. But benefits can be complicated and information scarce. This lack of clarity forces many to simply give up.

Companies invest too much in their benefits packages to allow this apathy, frustration and disengagement.

We’ve identified 3 strategies for increasing transparency throughout the entire member experience. These recommendations address possible points of confusion and supply the ways and means to make informed decisions and stay engaged.

1. Look for simplification: Prioritize an easy shopping experience with a clear price tag, consistently applied benefits and as little paperwork as possible.

2. Communicate: Get employees off to a strong start with personally relevant information and regular reminders about how their benefits work and what makes them special.

3. Provide helpful tools: Choose a benefits company that interacts with members on many levels, empowering them with choices and around-the-clock answers.

In this paper, we cover these strategies in more detail, along with several examples and solutions from our own experience in serving more than 55 million members.

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A NEED FOR TR ANSPARENCY

Amazing things can happen when employees are engaged with their benefitsWhen employees are happy with their benefits, they’re happier with their jobs.

In fact, 82% of employees who have good benefits say they’re highly satisfied with their jobs. Another 45% say vision benefits, in particular, contribute to their feelings of financial security.1

We know the value of engaged employees. Highly engaged business teams are 21% more profitable, and engaged employees outperform those who aren’t by 202%.2,3

1 “The State of Employee Benefits: Findings From the 2018 Health and Workplace Benefits Survey.”; (Jan. 10, 2019); Employee Benefit Research Institute. 2 Harter, Jim and Mann, Annamarie. “The Right Culture: Not Just About Employee Satisfaction.” (April 12, 2017); Gallup. 3 HR.BLR.com, 2015. 4 Vision Watch Vision Correct Standard, 2012.

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Engagement starts with appreciating what your company is offering — and utilizing it.

THE PROBLEM: YOU CAN’T APPRECIATE WHAT YOU DON’T UNDERSTAND

The reality is that half of employees don’t understand their benefits materials, which can make it difficult to appreciate or engage with them.5 Employees oftentimes find enrollment and making health insurance decisions “very stressful.” 6 As a result, many employees are simply giving up. Of all the generations in the workplace, Millennials may be the hardest to reach — 55% report being not engaged at work.7

Companies spend an average of $35.87 per hour on benefits for each employee.8 Meanwhile, we’ve seen that, when they use their benefits, employees can stay healthier and more productive. The last thing you want to see is unused benefits.

THE SOLUTION: MORE TR ANSPARENCY CAN CLEAR UP THE PROBLEM

What can you do to engage your people in their benefits? Clearly, the problem is multi-faceted, so the solution must be, too. We know that the more employees know about their benefits, the more they use them, so education is a top priority.9 In fact, 1 of the top 3 benefit priorities for HR professionals is "helping employees make informed benefits' decisions." 10 Every company wants their employees to understand their benefits. The question is “how?”

With vision benefits, and benefits in general, there are common touchpoints that can become pain points of confusion, which can ultimately keep employees from full engagement and utilization. Our experience and research have helped us identify these challenges and develop strategies for overcoming them.

3 STR ATEGIES FOR MORE BENEFITS TR ANSPARENCY AND ENGAGEMENT

1. Look for simplification

2. Communicate

3. Provide helpful tools5 “Benefits Communication Survey Results”; (2016); International Foundation of Employee Benefit Plans; https://www.ifebp.org/bookstore/benefits-communication-survey-results/Pages/benefits-communication-survey-results.aspx; accessed June 2019. 6 “The 2017 ALEX Benefits Communication Survey.” (2017); Jellyvision. 7 “How Millennials Want to Work and Live.” (2018); Gallup.8 “Employer Costs for Employee Compensation.” (Dec. 2018); The US Bureau of Labor Statistics. 9 "How to Engage Your Members: Frequently, Relevantly, and Simply." (2014); The Cicero Group. 10 HUB. “Why Human Resources Must Take a Long-Term View.”

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STR ATEGY #1

Look for simplificationNo matter how long they’ve been in the workforce, many employees are still perplexed by the intricacies of their benefits, even if they’re unlikely to admit it to someone at work.

While younger employees who have no experience can be particularly overwhelmed, there are common challenges all generations face when it comes to benefits and some innovative solutions.

HOW MUCH IS THIS GOING TO COST ME?

Show me the numbers — that’s what employees are asking. People don’t like surprise bills; employees want to know exactly how much a provider visit and prescription will cost them before they even pick up the phone to make an appointment. If their out-of-pocket cost is a large unknown, they may not make that appointment, which can lead to vision problems and lost productivity down the line.

VISION IMPACTS THE BOT TOM LINE

Slight miscorrections in vision can decrease productivity by 20% without the employee even being aware of the problem.11

The solution to this is turning a provider visit into an easy shopping experience with a clear price tag. Frames, lenses, coatings, materials, treatments — eyewear comes with many, often confusing options. Spelling out the cost upfront (and before the service) can give employees confidence and helps them stay excited about using their benefits.

EYEMED’S TAKE

We offer fixed, consistent costs on all services that are clearly outlined in our Benefit Summary, so our members know exactly what they’ll pay. Plus, our Know Before You Go cost estimator lists plan-specific out-of-pocket costs (if any) for any eyewear purchase scenario. Members can instantly compare how different frame, lens, treatment and coating choices affect the bottom line. It’s a convenient shopping companion that helps members avoid sticker shock and get the most from their benefits.

EyeMed’s Know Before You Go cost estimator has received such positive response from members, it’s available to all groups.*

11 “Invigorating Interest in the Vision Benefit”(2013); NAVCP Medical Advisor Roundtable.* Excludes the following plans: reseller, exam-only, safety & VDT, global allowance and declining balance.

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WILL MY BENEFITS BE DIFFERENT AT EVERY PROVIDER?

When it comes to insurance, there seem to be a lot of variables. Specifically, for vision benefits, employees can be hamstrung by confusing frame towers, formularies, add-ons and even inconsistent pricing from provider to provider. They may wonder, “Will my discounts apply? Will the frame tower be available? Will the benefits I see on my Benefit Summary be applied at both Provider A and Provider B?” If they can’t get clear answers, it may cause them to delay decision-making or even fail to utilize their benefits — which, again, can lead to long-term vision problems or health problems.

One way to avoid this issue is to ensure that all benefits are applied consistently across the network. When employees are offered the same benefits at every provider, they have the peace of mind of knowing what to expect ahead of time.

EYEMED’S TAKE

EyeMed benefits are applied the same at every in-network provider location. We offer fixed pricing and standard allowances; gone are limiting formularies and confusing frame towers that vary from provider to provider. Because members see eyewear as a personal expression, it’s important that they have freedom of choice to buy the frames, lenses and contact lenses they want. With our approach, we simplify the process.

WILL THE PAPERWORK BE TIME-CONSUMING AND CONFUSING?

The burden of paperwork is a common problem when it comes to benefits and a common reason members may avoid using them. Some benefits can be hard to use because of the amount of paperwork they require. Vision, in particular, shouldn’t be one of them.

The solution is to eliminate as much paperwork as possible and have your benefits company handle the rest. It’s a simple solution to see, but may be difficult to carry out if your benefits partner isn’t set up for it.

EYEMED’S TAKE

EyeMed requires no claims filing or paperwork by the member if they stay in-network. Enrollment is handled by the group’s benefits administrator; members get to simply enjoy their benefits. They don’t even need ID cards to see an eye doctor — just their name and birthday.

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STR ATEGY #2

Communicate Your best chance to reach a captive audience is from pre-enrollment to right after the enrollment period.

Why? Many employees are more engaged before they enroll, because they often need to understand the benefits they’re selecting. And after they enroll, they’re interested in their new benefits and want to know all the perks.

Still, to reach full engagement and stay top-of-mind, we believe benefits communication should take place year-round. However, only 23% of employees say their employers communicate about benefits throughout the year.12 To make things worse, only 1/5 of employees think their employer benefit communications are "very effective.”13

Let’s talk about how you can transform your communications strategy to make it more effective.

WHY SHOULD I CARE ABOUT VISION BENEFITS?

Many employees need help to see. But there are also a large number who don’t wear glasses or contacts and may not understand the importance of annual eyecare appointments (and how an eye exam can help detect early signs of serious health conditions). Communication and education during the open enrollment period are critical for both audiences.

The most important time to educate employees is during enrollment, when benefits experts and administrators have the most direct access to employees. Unfortunately, if you don’t connect at this time, especially with complex benefits programs, your employees may opt out or make the wrong choices for their needs. If they don’t engage right away, they might never.

This goes beyond the standard enrollment packet and a few emails. In fact, 80% of employees don’t even read traditional enrollment benefits collateral.12 While they want to go to their employer with health care-related questions, 62% don’t feel like they’re an available resource.13

Employees need an easy entry point and an ongoing dialogue that can answer their questions. This sets them up for success from day one.

EYEMED’S TAKE

EyeMed provides an easy enrollment experience, with education and decision-making tools. Our members receive pre-enrollment communications and our on-site vision experts can attend your company’s event.* Two websites — one for employers, one for employees — offer interactive tools and information that help employees make smarter decisions. During enrollment, companies can download and distribute customized posters, videos and email templates from our website.

Employers can expect to lose about 6 days of productivity a year (or about $7,800) per employee thanks to uncorrected vision14

12 "How to Engage Your Members: Frequently, Relevantly, and Simply." (2014); The Cicero Group. 13 "SHRM Survey Findings: 2016 Strategic Benefits—Assessment and Communication of Benefits." (Nov. 30, 2016); Society for Human Resource Management. 14 “Invigorating Interest in the Vision Benefit”(2013); NAVCP Medical Advisor Roundtable. *This service is available for groups with 300+ eligible employees on-site.

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HOW DO YOU GET EMPLOYEES OFF TO A STRONG START?

An ideal experience might look like this:

1. Members immediately receive pre-enrollment communications educating them on their benefits. Vision experts attend the benefits event, answering questions and walking new members through the process.

2. Communications emphasize that eye exams not only help those with vision needs, but can also help detect critical health and wellness problems (such as diabetes, high cholesterol and high blood pressure). This can result in earlier detection, earlier treatment and lower health care costs.

3. Posters, videos and email templates are available as a consistent reminder of enrollment and benefits perks.

4. Once members enroll, they’re reminded of what their benefits are and what they receive after enrollment.

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EyeMed provides an easy enrollment

experience, with education and

decision-making tools

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IT’S BEEN A WHILE; I ’VE FORGOT TEN HOW MY BENEFITS WORK

Enrollment is just the beginning of reaching out to employees. Because employees are more likely to stay at a company if they like their benefits,15 we believe it's important to stay top-of-mind all year. Supplying ID cards, online resources and your company’s contact for questions are all great ways to start the conversation throughout the year. After all, many don’t think about benefits all year long or even between uses, which can be few and far between.

Every audience has their own preference for what they want to hear and how they want to hear it. Most members appreciate communication about their specific condition — 83% in one study. Others want communications tailored to their specific coverage level — 85%.12 Still others would like to have it delivered in a specific way. In fact, 90% of Millennials think their benefit managers should be doing a better job of communication digitally.12

The solution is to communicate to employees exactly when, where and how they want. This may be digitally or through hard copy materials. While there’s no magic number of touchpoints, the more frequent the better. In general, people need to hear or see a message between 7 and 15 times to remember it and take action. Employers who communicate benefits information throughout the year have a greater chance of getting their message not only heard, but heeded.

The right benefits company will help employers by providing a wide range of communication tools to deliver to their employees.

EYEMED’S TAKE

From Welcome Packets (with ID cards) right after enrollment to ongoing education and tips and tricks throughout the year, we regularly communicate with our members and provide our clients with materials that they can distribute. We even customize communications, reaching out to members identified as being at-risk for high-risk health conditions and sending reminders to those who should schedule their annual eye exam.

90%Percentage of

Millennials who think their benefit

managers should be doing a better job of communication

digitally 12

In general, people need to hear or see a message between

7 and 15 times to remember it and

take action

12 "How to Engage Your Members: Frequently, Relevantly, and Simply." (2014); The Cicero Group. 15 “Employees Are More Likely to Stay if They Like Their Health Plan.” (Feb. 14, 2018); Society for Human Resource Management.

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STR ATEGY #3

Provide helpful toolsTo really educate and engage employees, companies need to go beyond texts, emails and articles.

If employees are confused about their benefits, online tools can quickly answer their questions. When they can quickly find the answers they need, they’re more likely to engage and enjoy.

I WANT TO LIKE YOU, BUT I DON’T UNDERSTAND YOU

About 50% of members don’t understand their benefits materials — what’s covered, what’s not and what all the terminology means.16,17 In fact, 1 national survey found that only 4% of Americans could define the terms deductible, copay, coinsurance and out-of-pocket maximum.18

What can companies do to increase understanding? First, choose a benefits company that offers a simple and clear benefits package. They should do an excellent job of explaining the details to an everyday audience on many levels, but this involves much more than simply communicating the benefits. Besides insurance literacy, don’t forget about vision and health literacy; members need to know about different lenses, coatings and other specifics. Online education tools can enhance that understanding.

EYEMED’S TAKE

EyeMed offers members a glossary of common benefits and vision terms, particularly important for younger employees new to the workforce. From copays and allowances to single-vision and progressive lenses, EyeMed brings it all together. To promote full understanding, we also offer several interactive tools, including one that simulates the experience of suffering a vision-impairing condition (from glaucoma or cataracts to macular degeneration), plus an Understanding Your Benefits tool that explains lens types, materials and enhancements.

16 “Benefits Communication Survey Results”; (2016); International Foundation of Employee Benefit Plans; https://www.ifebp.org/bookstore/benefits-communication-survey-results/Pages/benefits-communication-survey-results.aspx; accessed June 2019.17 “What Employees Are Thinking About Healthcare—And why their employer needs to step it up.” (2019); Maestro Health. 18 “4 basic health insurance terms 96% of Americans don’t understand”; (2017); Policygenius.

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HOW DO I FIND WHAT I NEED?

When members need answers to benefit questions, they don’t always know where to go. Ideally, members should be empowered to receive help in whatever way they choose (call center, app, website, email or in-person advisor).

The solution is providing multiple sources of help through a variety of channels that provide consistent information.

Benefits companies should be prepared to provide a single, consistent answer. They should also provide interactive tools that educate, and communications that anticipate member needs — from appointment reminders to customized information about disease conditions.

EYEMED’S TAKE

EyeMed offers a seamless experience that gives members multiple choices for reaching out, including our Member Portal and an award-winning health and wellness website with an extensive library of vision-related content. Here, members can explore articles, videos and interactive tools. They can also sign up for text alerts from us to receive special offers, benefits updates and tips and tricks to help them get the most from their benefits. Plus, they can always call our award-winning Customer Care Center to speak with someone who can answer their questions 7 days a week.

~50%Percentage of

members who don’t understand their

benefits materials 16,17

Our Member Portal and award-winning health and wellness

website provide members with an

extensive library of vision-related content

16 “Benefits Communication Survey Results”; (2016); International Foundation of Employee Benefit Plans; https://www.ifebp.org/bookstore/benefits-communication-survey-results/Pages/benefits-communication-survey-results.aspx; accessed June 2019.17 “What Employees Are Thinking About Healthcare—And why their employer needs to step it up.” (2019); Maestro Health.

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SUMMARY

Engagement is based on transparency and understanding, which may depend on the type of benefits package you offer. These 3 strategies are a good start to getting closer to 100% engagement. But choosing the right benefits partner will help you reach the finish line.

1. Simplify. Fixed pricing, consistency across providers and a final bill that’s not a surprise

2. Communicate. Innovative communications delivered the right way at the right time, particularly from pre-enrollment to post-enrollment

3. Provide helpful tools. Smart, interactive, online tools that empower employees and answer benefits questions 24/7

HOW DO YOU KNOW IF YOU’RE SUCCESSFULLY ENGAGING?

• If enrollment is up, employees understand the need for benefits.

• If utilization is up, they understand how to use their benefits.

• If they’re using in-network providers, they understand the value of their benefits.

People tend to engage with the companies who “get” them the most, so they look for those who can anticipate their needs. Creating proactive communications and tools based on real-life concerns, questions and problems goes a long way. And it all starts with having a keen understanding of day-to-day realities. Work with a benefits provider who offers solutions that can make life easier.

EYEMED MEMBERS ARE FULLY ENGAGED

When companies switch to EyeMed: 19

More employees enroll

More employees use their benefits

More employees visit in-network providers

We look forward to helping you and your employees see life to the fullest

To get started, visit starthere.eyemed.com or contact your EyeMed sales rep

19 EyeMed analysis of new business that transferred over from a prior benefits company, 2017.

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