Contact: Terry Stephens
Telephone: (03) 9245 5107
The private health insurance market in Australia is complex difficult for consumers to navigate. With a choice of over 40 registered health funds, consumers are provided with a bewildering array of product options.
Historically, employers have played an active role in assisting employees purchase health benefits within the corporate domain. This has covered the gamut from the financing of health as an employee benefit to facilitating the purchase of the product via payroll deduction.
With approximately 40% of the Australian population privately insured and a raft of government legislation that encourages private health insurance membership, the role of corporate Australia in promoting health as an employee benefit has never been more important.
The starting point for the Marsh/Mercer health practice in working with its clientele to define a relevant corporate health benefits offer is to ensure that the benefit structurally aligns with the organisational remuneration strategy. For example, an organisation that is compelled to remunerate its key employees at the 80 th percentile, as a consequence of operating in a tight labour market, is more likely to finance the benefit than offer it on a voluntary basis.
The selection of an underwriter appropriate to an organisation’s needs is dependant upon a range of factors. The degree of employer subsidy, geographical location, employee demographics, benefit structures and brand profile are all key variables that are part of the process of selecting an appropriate underwriter and value proposition.
A critical component in the installation of a corporate health benefits program is the execution of an appropriate communications strategy. Developed in conjunction with both the client and participating health fund, this must be aligned with organisational values and reflective of the prevailing corporate culture.
Post implementation, the Marsh/Mercer health practice continues to work with its clientele in an account management context to ensure that the benefit delivers value to all stakeholders on an ongoing basis.
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