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Benefits

Cookie Cutter Benefits Decision Support Just Can’t Cut It

Dana Borrero

What’s keeping your company from implementing a robust benefits administration platform? If the answer is cost, you’re not alone. In most cases, cost is the number one factor keeping many organizations from upgrading their benefits administration platforms, informally known as “ben admins.”

Many employers are unaware that tech credits and long-term savings can offset the cost issue. But what exactly are tech credits, and how do they work? More importantly, how can they lead to an improved employee benefits experience?

Let’s dive right in!

## What are Tech Credits?

Tech credits are a form of carrier subsidies meant to partially or fully offset the costs of implementing a benefits-related technology such as benefits administration or benefits decision support platforms.

Carrier subsidies are offered in two forms, one being a percentage of the premium and the other being a flat dollar amount, both intended to be allocated to the employer's enrollment technology.

These subsidies help establish a system that improves the employee and employer experience while creating a long-term partnership between the employer and the vendor.

Every technology upgrade is an investment involving installation, service fees, and the cost of training the employees. By improving the benefits enrollment and utilization experience, streamlining billing and other services, and enhancing data transfers between the carrier and employer, a technology subsidy is a win-win situation for all — the carrier, the broker, the employer and the employee. 

![Tech Credits (2).png](https://nayya.nyc3.cdn.digitaloceanspaces.com/e7b769be7242c02e6fbddf5ce2527c85.png)

## The Benefits of Tech Credits

Offsetting the costs of implementing a benefits administration platform can help organizations in a number of ways.

### Benefits to Employers

Companies understand that great benefits help attract and retain top talent. But with millennials and Gen Zers making up the majority of today’s workforce, presenting said benefits in a tech-savvy way is a must.

Why? Because they expect online convenience, on-demand services, and access to information on the go, leaving organizations challenged to deliver intuitive and [user-friendly benefits experiences](https://www.nayya.com/blog/healthcare-eBook-predictions).

By reducing the cost of the technology, employers are presented with a fiscally sound opportunity to implement these systems, turning these expectations into reality. And in turn, your workforce will see that you’re continually investing in them, leading to higher employee satisfaction and boosted retention rates.

### Benefits to Employees

Benefits are crucial to establishing your employees’ financial and physical wellness. You can equip them with a comprehensive process through technologies like benefits experience platforms that provide:

- **Benefits awareness:** Increased visibility of your benefits portfolio so your employees are informed of the breadth and depth of what you’re offering them
- **Benefits education:** Enables your workforce to understand their benefits and the value of each of them so they can confidently select what will best support their families’ benefit needs all-year round
- **Benefits allocation:** Empowers your employees to appropriately utilize their benefits based on their individual/family needs for coverage and security

## In a Nutshell

Investing in a robust benefits experience helps employers streamline processes, increase their benefits ROI, reduce HR admin burden and improve employee benefits experience during [Open Enrollment](https://www.nayya.com/blog/large-insurance-carrier) or qualifying life events. It also increases employee’s awareness and education of their offered benefits to help them select what’s best for their needs. 

But the time and heavy fiscal investment deter many organizations from upgrading their benefits experience that would produce these results. By leveraging carrier subsidies in the form of tech credits, you can implement a top-of-the-line benefits solution like Nayya, at a fraction of the price.

If you’re unsure about your organization’s eligibility to receive tech credits, reach out to your insurance carrier or broker. And if you’re ready to see how implementing a benefits solution that drives cost savings for employers and employees — [get in touch with us today](https://www.nayya.com/contact-us).

Nayya is a benefits experience platform that provides personalized decision support and guidance for employees based on their mental, physical, and financial needs.  Powered by millions of data points and an AI engine, our solution delivers decision support and guidance during new employee onboarding, open enrollment, qualifying life events, and in the moments that matter all year round. 


Discover how to fund a better benefits experience by leveraging tech credits. Learn what tech credits are, how they work, and how they can lead to an improved employee benefits experience.

Leveraging Tech Credits: How to Fund a Better Benefits Experience

## The B.E.N.E.F.I.T.S of FSAs

With the end of the year approaching, your employees might be sitting on an unused FSA balance. Since FSAs are “use em or lose em,” it’s important for employees to understand that if their balance isn’t spent in time, they might lose the money they’ve contributed. 

Many employees typically use their FSAs for provider copays, prescriptions, and other health-related expenses — but if they don’t have healthcare expenses in the coming weeks, they’ll need to use their balance on other costs, or risk losing their investment.

Here at Nayya, we love benefits, and we love helping employees get the most out of their finances, so we made a fun BENEFITS acrostic poem to help you communicate to employees the different things they may not have realized they can spend their FSA dollars on. 

**B:** 
Band-Aids: From heavy-duty bandages, to Finding Nemo themed band-aids for your toddler, you can use your FSA money to stock up on band-aids for you and your family.

**E:**
Eye Care: Whether it’s eyedrops, eyeglass accessories, or even eye surgery, FSAs can support your vision needs before the year is up.

**N:**
Nicotine Patches: If one of your New Years Resolutions is to quit smoking, this may be the perfect way for you to spend your FSA funds.

**E:**
Ear Thermometers: Cold, flu, and Covid season is upon us, having a thermometer handy at home can help you monitor your family’s health throughout the season.

**F:** 
First Aid Kits: It never hurts (no pun intended) to have a first aid kit on hand. Stock up on first aid supplies for your home, car, or grab a travel kits for minor emergencies on-the-go.

**I:** 
Ibuprofen: If the constant holiday tunes and family gatherings are giving you a month-long headache, this might be the option for you. Just kidding (sort of).

**T:** 
Taxi fare / travel expenses to receive medical care: This is a unique one! If you or a loved one need medical attention and you don’t have a car, you can use your FSA expenses to cover medical related travel expenses (like the cab to the E.R. or urgent care).

**S:** 
Sunscreen: Despite the chilly weather, the sun is still strong! Stock up on sunscreen to combat the winter sun (or, to bring with you on your post holiday beach vacay) with your leftover FSA funds.

These are some great benefits you can use your FSA dollars on, but this is far from the exhaustive list! Employees can check out the [government-provided FSA store](https://fsastore.com/fsa-eligibility-list/) to learn about all of the unique options that they can use their FSA funds to purchase before the year is up.

We've put together a list of all of the unique things employees can spend their FSA funds on before the year is up!

FSAs: Unique Ways to Use Funds Before Losing Them

## Healthcare Benefit Costs to Increase

If there's anything that the last few years have taught us, it's that having a competitive benefits package is critical to a company's success. Attracting and retaining top talent has become increasingly difficult, and one of the key ways to stay ahead of the curve is by offering a benefits package that meets or exceeds the needs of employees and their families, giving them peace of mind. However, with healthcare costs rising faster than the rate of inflation, it's becoming more and more difficult for companies to offer comprehensive benefits packages without breaking the bank.

A recent study by Willis Towers Watson looks at the projected costs of healthcare benefits for 2023 and how they will impact employers.

## The 2023 Global Medical Trends Survey

For the 2023 Global Medical Trends Survey, Willis Towers Watson interviewed 257 leading health insurers in 55 countries over the summer of 2022. The survey projects that global healthcare benefits costs will increase to the highest level we've seen in over ten years. 

On average, global healthcare benefit costs are projected to increase by 10% in 2023, according to the report. This is a significant increase from the 8.8% rise we see in 2022 and the 8.2% in 2021.

## What's driving these increases?

There are a number of factors that are contributing to the rising cost of healthcare benefits. Here are some of the key drivers:

- **Global inflation**: Between the current international conflicts and supply chain issues, inflation has rapidly risen. This has directly impacted the cost of healthcare benefits as providers pass along inflation increases to employers.
- **The pandemic**: The ongoing COVID-19 pandemic has resulted in both a higher utilization of healthcare services and an increase in the cost of treatments. Many countries are still dealing with this pandemic, and the costs associated with the long-term effects are still being felt and difficult to predict.
- **Overuse of services**: The number one driver behind the rising cost of healthcare benefits is thought to be the overuse of services, ranked first by 74% of insurers. This means medical professionals are ordering more tests and procedures than necessary and overprescribing medications. This, in turn, drives the cost of healthcare up without necessarily improving the quality of care.
- **An increase in chronic conditions**: Along with an aging population, we're also seeing a rise in the number of people living with chronic conditions such as diabetes and heart disease. These conditions require more frequent and more expensive treatments, which drives up the cost of healthcare benefits.
- **Increase in mental health services**: For a long time, it felt like mental health was not acceptable to discuss in the workplace — but it's becoming more and more common to talk about these issues and seek treatment for them. The pandemic has also taken a toll on mental health, with anxiety and depression rates skyrocketing. The increased demand for mental health services has driven up the cost of overall healthcare benefits.
- **Poor lifestyle habits**: Despite all of the available information about the importance of maintaining a healthy lifestyle, unhealthy habits like smoking, drinking, poor posture habits, and a sedentary lifestyle are still quite common. These poor health habits can result in more serious or chronic health problems down the road, which drives up the cost of healthcare benefits.
- **Lack of preventive care**: Many people still don't see the importance of preventative care, such as routine physicals, screenings, and dental cleanings. The lack of preventive care often leads to more severe problems, which are more expensive to treat. The years of the pandemic lockdowns have also led to a decrease in preventive care. Many people have been afraid to go to the doctor or dentist, and access has often been limited due to physical distancing restrictions. Healthcare providers are still playing catch up to provide the necessary preventive care that's been missed over the past few years, and many patients are now dealing with the consequences.

## Healthcare cost increases across the globe

Although all countries are projecting an increase in healthcare costs for 2023, there are significant variations by region. In North America, for example, healthcare benefit costs are projected to increase by only 6.5%, lower than the 9.4% increase in 2022. 

In contrast, most regions will still see an acceleration in the growth rates of their cost of benefits.

Experts project that average healthcare benefit costs will increase in the Middle East and Africa by 11.5% in 2023, versus 10.5% in 2022, in Asia Pacific by 10.2% versus 6.9% in 2022, and in Latin America by 18.9% from 18.2% in 2022. Even in Europe, where healthcare costs have traditionally seen lower increases, they predict a rise of 8.6% in 2023 versus 8% in 2022.

Experts have warned that healthcare costs will carry on increasing unless we make fundamental changes to the way care is delivered.

## How to keep healthcare costs down

If employers want to keep their healthcare costs down, they need to make some changes to the way they're approaching benefits. Some of the ways they can do this include:
- **Offering incentives that encourage employees to live healthier lifestyles**. These incentives can include discounted gym memberships, on-site wellness programs, health coaching, healthy food options in the workplace, and health risk assessments.
- **Encouraging employees to use preventive care services**. This can be done by offering free or discounted screenings and physicals. Education is also key, and employers can provide educational materials on the importance of preventive care and how it can save money and improve quality of life in the long run.
- **Ask employees what they want from their healthcare benefits**. By understanding what your employees value, you can design a benefits package that meets your employees' needs and helps keep costs down. Using decision support software like Nayya can also support employees to make better choices about their benefits and find the providers that offer the best value for their specific needs, optimizing healthcare costs without sacrificing the quality of care.

A competitive benefits package is still a crucial element in attracting and retaining top talent. With healthcare costs still projected to increase, employers need to be strategic about how they design and manage their benefits as a recruiting tool.

With the right approach, taking proactive steps to support employees in maintaining good health and a balanced lifestyle and using decision support technology to make benefits more cost-effective, it is possible to keep healthcare costs down while still providing a comprehensive benefits package that meets the needs of your employees or potential candidates.

According to research from Willis Towers Watson, healthcare benefit costs will increase in 2023.

Cookie Cutter Benefits Decision Support Just Can’t Cut It

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Leveraging Tech Credits: How to Fund a Better Benefits Experience

FSAs: Unique Ways to Use Funds Before Losing Them

Global Healthcare Benefit Costs to Increase in 2023

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