How important are employee Education/Benefit Meetings? We feel Employee Benefit Education Meetings are paramount to the success of the implementation of a benefits program. By taking the initiative and having meetings that explain the change and the reason for the change it helps eliminate any negativity and help build employee morale with respect to the benefits program.

Much of the information in this issue of The Stratford Financial Group newsletter deals with the notion of "Consumer Directed Healthcare", specifically HSA and HRA. While these plans continue to gain more momentum, we need to be sure as Benefit Consultants and business owners that we are educating our employees so that they can utilize their medical insurance to obtain quality care in a cost-efficient way. Not less care, but different care.

To illustrate my point, I'd like to share a story with you. Earlier in the year a long time client decided to implement a cost sharing plan which would allow them to significantly reduce the employer and employee premium costs. The main difference was in the prescription portion of the plan. All of the prescription co-pays were increased, but the savings the employees would see in their contributions would make up for the difference they would pay at the pharmacy. My client did not see the need for the meeting since the employees were very busy in production and they felt that the department managers would be able to pass along all of the information the employees would need.

Well, not too long after the plan was implemented I began receiving phone calls from one particular employee who told me that the plan wasn't paying for her prescription. The situation was that her prescription under the old plan cost her $25, and under the new plan it was $50. It was a shock to her and it was worse that she had to find out at the pharmacy that she would now pay $50. The drug she needed was a brand name for which there is a generic equivalent. I suggested she check with her doctor, who switched her prescription to the generic allowing her to pay only $10 at the pharmacy! So to recap, she is now saving close to $10 per week in contributions, she is saving $15 per prescription, and she is a happy and motivated employee. The only negative is that she was upset for a short period of time which could have been eliminated altogether had we arranged an employee meeting.

I encourage you to make sure to educate your employees regarding these new programs, after all, happy employees are productive employees.