3-1 Total Rewards Benefits
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Dec 6, 2023
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1.Consumerism: the protection or promotion of the interests of consumers.
"the growth of
consumerism has led to many organizations improving their service to the customer" (Oxford Dictionary)
Consumerism is changing the workplace and impacting not only employees and their benefits
but also how employers are offering benefits to their workers; specifically the health care benefits
offered. A consumerism-based tactic is, "an approach to healthcare where an employer adopts a high-
deductible health plan, combines it with a tax-advantaged savings option, and creates a culture which
fosters greater empowerment for employees to make effective healthcare purchasing decisions," (KMRD
Partners, 2017, para. 5). By converting to a consumerism focused strategy, it has allowed for healthcare
to be more cost-effective and efficient to all. It is being designed to streamline care, always important
today where people want their products and services almost instantly. This concept can be confusing for
some because it places the purchasing power and decision-making right in the hands of those
participating. It has been seen that some patients do not care for shopping or managing their own health
care information because it can be overwhelming (DataPath, 2017). Though the concept of healthcare
comes across as overwhelming and hard to follow because of it’s continuously changing practices and
policies, by undergoing consumerism style change for employee benefits it can be
advantageous for a
company and its employees because, people need a way to deliver care to people more efficiently and
effectively. Andrew Grove, EVP of Sales and Account Management for SWBC, mentions in his article how
health care consumerism is designed to:
1.
Encourage closer communications and collaboration between doctors and their patients.
2.
Increase patient buy-in and adherence to treatment recommendations.
3.
Increase patients' knowledge, understanding, and awareness of lifestyle and wellness
practices.
4.
Focus more on preventative medicine by encouraging healthy activities and habits. (Grove,
A., 2021, para. 3)
To help take some of the financial confusion off participants and allow them to be more savvy
investors in their health care accounts and spending there are three account options that they can
choose from: Health Savings Account (HSA), Health Reimbursement Arrangement (HRA) or Flexible
Spending Account (FSA). Though designed and operated differently these accounts play the same role in
assisting participants to save money for when they need to pay health care services out-of-pocket. Like
many large companies, Tyson Foods, offers HSAs and FSAs to its employees allowing them more control
over their health care purchases, and deciding where they would like their money to go to (ie:
medication, glasses, dental work, etc.). To help make consumerism as effective as it can be employers
offer the participant the option to choose either in-network or out-of-network health care providers
(where in-network providers are more cost efficient since they have a partnership with the employer).
They explain what services are and are not covered and price range, co pay deductibles, and provide a
glossary of terms that help to explain health care/medical jargon. The benefits of being a consumer in
today's workforce is all about choices, transparency, personalization, and immediacy - this is why a
consumerism approach is a benefit for employers and employees when it comes to an overall work
sponsored benefit packages. In the past, benefit packages were a one size fits all approach; however,
now, more than ever, employers and benefits professionals are starting to realize how that isn't the case
and are transitioning towards the consumerism model that aligns with employees and their diverse
benefit needs. "Traditional health benefits are one-size-fits-all, which means that decision making lies
with the employer, who chooses one or two plans that the business can afford. From there, every
enrollee has to choose between accepting this coverage or opting out – whereas consumerized
employee benefits gives the decision-making power to the employee,"(People Keep, 2016, para. 8).
Being able to engage with employees while allowing them more control over their benefits needs allows
employers to evolve the relationship between them and their workforce. With the current generation of
workforce wanting instant services, consumerism in employee benefits can help reimagine employee
benefits packages to cater even more to the individual needs of employees. Benefits should not be a one
size fits all, with all the diverse benefits options available in today’s society- if we give employees
effective incentives and tools, they can confidently understand consumerism and how a consumeristic
approach can benefit them in the long term and now.
Grove, A. (2021, August 27). How Health Care Consumerism Could Help Reduce the Cost of Benefits for
Employers. Austin Business Journal.
https://www.bizjournals.com/austin/news/2021/08/27/how-health-
care-consumerism-could-help.html
KMRD Partners. (2016, December 8). How a Consumerism Strategy Can Improve Healthcare Benefits and
Control Costs.
https://kmrdpartners.com/2016/12/08/consumerism-strategy-can-improve-healthcare-
benefits-control-costs/
DataPath. (2017, September 20). What is Healthcare Consumerism and How Does It Affect Healthcare?
DataPath, Inc. https://dpath.com/what-is-healthcare-consumerism/
Team, P. (n.d.). What are Consumer Directed Health Plans (CDHPs)? Www.peoplekeep.com.
https://www.peoplekeep.com/blog/consumer-directed-health-plan-cdhps
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