2014 Annual Enrollment: Healthy Choices

Case Studies

gq-logoIn 2011, BAE Systems modified its health and welfare benefits strategy to offer a single medical insurance plan to most employees. This decision was based on the ever-increasing costs associated with providing coverage for more than 30,000 employees and the operational inefficiencies of administering multiple plans. The selected plan — Health Plus — focused on wellness and preventive care, offering employees and their families access to health screenings, personalized health coaching, and financial incentives to offset plan deductibles.

Health Plus is working. The company’s benefit costs are increasing at much lower rates (2.7 percent increase in 2014, compared to the nationwide trend of 7.5 percent), and employees and their families are healthier (biometric screening results from 2011 to 2012 show significant improvement for eight out of 10 health risk areas). Nevertheless, employees have expressed — through employee surveys and anecdotal feedback — a desire for choice in medical plans. The company’s senior leaders carefully considered this feedback and decided to offer employees two additional medical plan options for 2014.

The scenario offered a communications opportunity to educate the company’s managers, employees, and their family members on the benefits and features of the two new plans while continuing to promote Health Plus as an excellent, cost-effective option for most participants.