The Countdown Is On—Start Planning for Open Enrollment Now!

Employees who make the best decisions are the most informed. Inspiring informed employees is a year-round initiative. Educating employees over time empowers them to make better decisions during open enrollment and as they utilize their benefits throughout the year.

Did you know that this entire process can be outsourced? Select an outsourced solution now for a customized implementation. Many employers don’t start planning for open enrollment until August. Choosing an outsourced solution like Tango now will give us time to develop a custom communication, implementation and support plan for you and your employees.

Simply Allowing Employees to Choose is Not Enough

The happiest employees are those who choose the health care plan options that best fit their own family and lifestyle. Yet there is a perception that HSA (Health Savings Account)-eligible plans are inferior to the health plans they are familiar with. This is a misconception.

Higher deductibles can be intimidating to an employee considering the switch. The employee rarely has the full amount of the deductible set aside in case of a major medical expense. This is why so many employees make the poor financial decision to pay a higher per-paycheck amount toward their premium to avoid exposure to a higher deductible. Of course, employers can eventually build up a buffer with HSA contributions, but the advantages to this are not obvious to employees.

Nobody Wants to Force a Change!

Employers want to help employees make their best choices. Yet few employers planned and budgeted for the additional resources required to educate employees and then custom tailor the offering to encourage adoption of HSA-eligible plans. What is necessary is an infrastructure and dedicated staff to support every individual employee’s decision-making process.

Reality – Elusive Savings From HSA-eligible Plans

HSA-eligible plans can deliver substantial savings. Yet many employers don’t get the full benefit from offering them to their employees because focus is lost outside of open enrollment.

Employers want to encourage employees to be smarter healthcare consumers. And they want to help employees to avoid negative consequences in their own coverage choices. Getting the balance between employers’ goals and doing right by employees, takes more coaching and resources than most companies have in their HR teams.

“We needed more resources and a better way to educate our diverse workforce to understand the benefits of High Deductible Health Plans. Tango’s program helped us make exponential improvements in high-deductible health plan satisfaction and even adoption. I wish everything was this simple and effective.”

—VP of Fortune 500 Company
Tango works side-by-side with your team to provide a quality experience for every employee. Tango has the knowledge and experience to manage benefits selection and decision support for optimal results. Tango’s tools provide employees with customized data to make smart decisions. We handle all aspects of educating employees about why HSA-eligible plans can actually be their best option, so you don’t have to. The following modules of the program come together to provide a comprehensive solution:

Ongoing Customized Education and Communication — We offer client-branded communications throughout the year, customized with your plan offerings. This can include print, email as well as on-demand online training with professionally produced webinars and videos to educate employees on how to use their plans, whether they are HSA-eligible plans, other spending accounts, or traditional plans.

Tango Decision Assist On-Site Open Enrollment Facilitation — Our trained experts are an extension of your team. We determine, with you, the correct balance of onsite and remote presence.

Tango Decision Assist Predictive Simulation Tool — We offer access to a personal decision support tool and can even prepopulate it with data from each individual’s healthcare costs from the previous year. The tool does NOT always recommend the HSA-eligible plan option, it provides personalized guidance and recommends what is right for the individual employee. This isn’t a plan comparison tool – it’s an engaging decision support and choice affirmation system.

Tango Decision Assist Coaching Support Line — Our trained experts are available via phone and email throughout the year for one-on-one choice validation, support and education. We are an extension of your team and provide branded care from our specialized coaches in our Austin, Texas home office.

Tango delivers happy employees, higher adoption, and cost savings. This is exactly what is meant by a win-win scenario.

“Our employees were able to see the value and benefits of the plans they chose. Tango provided onsite training, live customer service support, a choose-your-plan tool—pre-populated with individual employee data—and all the collateral we needed. It felt as if our HR team was sitting down with every employee.”

—VP of Fortune 500 Company

What makes employees nervous about switching to HSA-eligible Plans?

  • Many employees believe that the most expensive health plan option is the best one, which is not true. Other common misperceptions by the employee’s spouse can eliminate the option immediately if they are not informed.
  • Employees assume that the lower per-pay period (commonly referred to as premium) cost of an an HSA-eligible health plan must mean that some critical benefit is missing or that the network is inferior, which is not true.
  • The higher deductible of an HSA-eligible health plan can be intimidating to an employee considering the switch because they do not already have the full amount of the deductible set aside in case of a major medical expense.
  • Some employees make the financially flawed decision to pay a higher per-paycheck amount to avoid exposure to a higher deductible. This doesn’t make sense if they have a Health Savings Account (HSA).
  • For employees accustomed to a fixed co-pay for office visits and prescriptions, switching to a model where you don’t know in advance what a trip to the doctor or pharmacy will cost can be intimidating. Many employees fear the unknown nature of their first few months on the plan. The truth is that their pharmacist and doctor can tell them with a high degree of accuracy what the costs will be, and catastrophic expenses at the start of the year are rare.
  • Change, of any sort, is scary. Asking employees to change their family’s health plan without a robust education and support program is not a good idea.

Why do employees feel more confident with Tango Decision Assist Program?

The Tango program is proven to increase voluntary employee adoption. How?

Tango’s engaging experts have years of experience fielding questions in on-site employee training as well as tens of thousands of call-center conversations specific to understanding the benefits and savings of HSA-eligible plans. Here are some common discussions:

  • Health plan designers and actuaries confirm that ~80% of employees are financially better off in the highest deductible plan their employer offers.
  • Employee’s per-pay period deduction will be lower for an HSA-eligible plan vs a POS or PPO plan.
  • Explaining that employers are really not unfairly pushing HSA-eligible plans because they are far cheaper than PPO plans; they really do want employees to be on the best plan for them.
  • A common misperception is that choosing an HSA-eligible plan will somehow limit the providers accessible on the plan. Employees have access to the same network of providers in a HSA-eligible plan as they would in a POS or PPO plan. They also retain the benefit of the insurer’s negotiated volume discount pricing.
  • Once the out-of-pocket limit on an HSA-eligible plan is reached, expenses are covered for the year. PPO or POS plans continue to have co-pays even after the out-of-pocket limit is reached.
  • With an HSA-eligible plan, the employee’s share of medical expenses may be paid pre-tax through a Health Savings Account (HSA).
  • Employees covered by POS or PPO plans may have access to a Flexible Spending Account (FSA). HSAs are superior to FSAs in four ways:
    • First, many employers make an employer contribution to employee’s HSAs.
    • Second, there is no annual use-it-or-lose-it provision for HSAs, as there are with FSAs.
    • Third, the higher contribution limit and flexible contribution timing for HSAs favor the employee in ways that FSAs do not.
    • Fourth, the funds contributed into HSAs are portable, employees will have access to those funds for the rest of their lives until they spend it
  • Annual physicals, well checks, and immunizations are free to the employee and dependents with HSA-eligible plans.
  • In side-by-side comparisons, using actual numbers, both infrequent and high-frequency users of the healthcare system tend to be better off in an HSA-eligible plan.  Infrequent users will not have to pay out their full deductible. High-frequency users will meet their deductible and out-of-pocket limit and then will pay nothing else until the following plan year.

 

“Because healthcare is our second largest expense to payroll, cost is important. Where past cost containment measures have failed, Tango’s Decision Assist program drove employees to voluntarily select a more cost effective consumer driven health plan.”

—Steve Grossi, BOK Chief HR Officer

Tango’s Decision Assist Program delivers dramatic results with a complete turn-key outsourced approach and no additional workload for our clients. Return-on-investment begins in the first month. Tango’s solution pays for itself very quickly.

Our case study features two clients:

  1. At our Fortune 500 client* adoption increased from 16% to 52%, yielding over $100 million in savings.
  2. At our smaller client, adoption increased from 5% to 30%, yielding over $1 million in savings.

*Our client has a corporate policy that prohibits us from sharing their name in this format. However, they are happy to provide live references to peer companies interested in Tango’s services.

“For the first time in my 30+ years, we were able to reduce our year-over-year healthcare spend. With Tango, we’ve done it two years in a row.”

—VP of Fortune 500 Company

Tango Health, Inc (Tango) is an Austin, TX based SaaS company in business since 2008. Tango offers 100% outsourced solutions to take the burden off HR and benefits teams. We provide hands-on guidance and expertise to assist employees throughout the benefits enrollment process. With no additional headcount, we become your team for the project. You’ll need no training, because our expert staff, support & facilitate your program.

Tango dispels employee concerns and fears with our Decision Assist Predictive Simulation Tool. Using the previous year’s healthcare data and different scenarios, employees are able to quickly and confidently determine which healthcare plan is right for them. They also better understand the value of the plans.

Our track record shows that given the right data and training, a majority of employees will avoid over-insuring and choose an HSA-eligible plan. Tango’s tools simplify administration for benefits professionals and can be fully customized to your organization’s plan structure.

Tango is an extension of your team, delivering happy employees, higher adoption, and cost savings.