Paramedical Benefits - Measuring Cost vs. ROI

When employers review their benefits plan, paramedical coverage is often treated as a claims expense. Physiotherapy is costing us this much. Massage therapy is being utilized at this rate. Mental-health practitioners are generating these claims. Should we increase or reduce the maximums?

But perhaps the more important question is: What is the cost of not providing enough access to these services?

Consider an employee dealing with a back problem who cannot get enough physiotherapy. An employee experiencing anxiety or depression who faces barriers to accessing a mental-health professional. Or an employee managing chronic pain who uses massage therapy as part of their treatment plan. In each case, the benefits claim is only one part of the equation.

The bigger employer costs can be absenteeism, disability, reduced productivity, presenteeism, workplace accommodation and, ultimately, employee turnover.

That changes how we should think about paramedical benefits.

An additional $200 or $300 of coverage may look expensive when viewed strictly as a benefits cost. But if improved access helps an employee remain at work, return to work sooner or avoid a more significant health issue, the potential value to the employer can be considerably greater than the additional claims cost.

This doesn't mean employers should simply increase every paramedical maximum. The right solution may be higher coverage, better access to mental-health professionals, onsite or virtual physiotherapy, ergonomic services, direct-access programs or better integration with disability management.

The key is to stop evaluating paramedical benefits in isolation.

The question shouldn't simply be, "How much are our employees claiming?" It should be, "What are we getting back from the investment we are making in employee health?"

For plan sponsors, this represents an opportunity to move the conversation from managing benefits costs to managing workforce health and productivity.

The lowest-cost benefits plan isn't necessarily the one with the lowest paramedical claims.

It may be the plan that provides the right level of access at the right time, before a manageable health issue becomes a much more expensive workplace issue.

If you want to discuss the structure of your paramedical benefit offering though a holistic lens vs. a benefit cost line item, send us a note.  This is one of the many ways we differentiate ourselves as your strategic advisor.

Joseph Partners is a boutique group benefits and retirement consultancy focused on providing clients with strategic guidance and tailored service.  Our team is made up of seasoned industry experts that put you first every time.  Reach us at hello@josephpartners.com