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Your company provides retirees with health benefits, including coverage for prescription drugs. In light of the new Medicare law, your benefits team has been analyzing what approach to take once the Medicare Part D prescription drug benefit becomes effective on January 1, 2006. Given likely changes to your plan, you know communication will be critical. What are some tips for communicating Medicare Part D to retirees and employees? |
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Answer: |
No matter which option employers choose in dealing with the new Medicare Part D (for example, continuing retiree drug coverage or providing a wrap-around plan), employers will need to communicate the new information, and any health plan changes, to retirees and employees. To do so effectively, Hewitt Associates offers the following tips:
- Assume retirees have some information. First, assume retirees have some information already about Medicare Part D, says Jennifer Murphy, Hewitt's thought leader for health care communications. Retirees will be going into this process with either some information or possibly misinformation about what Part D is all about. Other retirees may have heard nothing and will require some more background.
- Leverage the power of social norms. Second, leverage the power of social norms. Murphy says many retirees are afraid to make decisions, especially financial ones, for fear of making a mistake. Social norms come into play because retirees will rely on their peers for advice and decision-making support. Hearing from their peers that they should enroll in Medicare Part D will be a very persuasive source of information, she says.
- Consider other decision makers. Third, Murphy says it's important to realize that retirees may not be the main decision makers regarding Medicare Part D. They might be relying on a spouse, adult child or financial advisor to help them make the decision. That means the information employers send to them will be read by others as well.
- Realize high tech, high touch needs vary. Fourth, note that high technology needs versus high touch needs are going to vary in an employer's retirement population, Murphy says. New retirees may be more Internet-savvy than retirees who have been out of the workforce for many years. This latter group, she says, will be relying more on print communication or may want to be able to speak to someone who will answer their questions.
- Realize information needs vary. Fifth, Murphy says that retirees will vary in the amount of information they need or want. Retirees are more likely than active employees to read communications sent to them and to read them more thoroughly.
- Communicate early. Sixth, communicate early, Murphy says. Retirees will want some time to read, absorb and ask questions about the Medicare Part D information. Because they can begin enrolling in Medicare Part D on November 15, they'll want to start receiving information about a month before that. Murphy advises to begin the communication process prior to October 15 so retirees have some idea of what's coming down the road.
- Use appropriate communication channels. Seventh, use communication channels that work effectively for the employer's retiree population, Murphy says. It may not work, for example, to put everything online if some retirees don't have access to online tools. She says to consider something like town hall meetings or formal networking groups so retirees can talk and discuss information.
- Don't forget active employees. Finally, don't forget about active employees in the process, especially those who are close to retirement. Murphy says active employees will want to know about the company's strategy regarding retiree medical. They will be hearing about the changes, and this might raise some questions and new issues for them in terms of how they might be planning for retirement, how much money they need to save and what benefits, if any, the employer might be offering to them down the road.
Source: Jennifer Murphy speaking at a Hewitt Associates’ teleconference, The Countdown to January 1, 2006: Preparing for Medicare Part D, January 12, 2005. |
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