Building a benefits dream team: Choosing the right ancillary partner

• Key insight: Discover how carrier selection can make ancillary benefits strategic retention differentiators.
• Expert quote: "Benefits must be easy to understand, manage, and packed with value," says Diana Steinhoff.
• Forward look: Expect consolidation and ongoing vendor support to accelerate benefits strategy.
  Source: Bullets generated by AI with editorial review

Ancillary benefits can be a great way to cover gaps that core offerings leave behind, but if they're a challenge for benefit leaders to administer or employees to adopt, even the best ones will fall flat. 

This is where the importance of carrier and vendor selection comes in, says Diana Steinhoff, CEO of insurance firm Renaissance Benefits. The right ones provide offerings employees appreciate, such as supplemental medical, dental, vision, fertility and behavioral health options,  but just as important, they make processes of maintenance and communication simple for benefit leaders.   

"Benefits have to be easy to understand, easy to manage, and really packed with value," Steinhoff says. When carriers prioritize this on their end, benefit leaders know things are going to run smoothly regardless of the number of solutions they have, and their primary thought can be, "what else can I add to my plan?"

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The power of good partnerships

Steinhoff suggests benefit leaders work closely with their brokers to get a broad view of the carriers and solutions that will best meet their needs. In addition to the kinds of benefits they're looking for, they should communicate administrative priorities — such as what kind of technology is used to simplify processes for both HR and employees, and how the company will be billed — to help brokers curate a strong list of candidates, she adds.

Finding carriers that consolidate ancillary benefits is another way to reduce HR burden and maximize value. Steinhoff uses Renaissance's RenSecureHealth plan as one such example, offering employees cash payouts for over 13,000 medical conditions from minor to catastrophic, versus them having to sign up for separate accident, critical illness and hospital indemnity insurance policies. Workers can file claims directly through Renaissance's app or online, and payment is generally issued directly to them within 72 hours of approval. 

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Better benefits, better talent

When benefit leaders are equipped to build, manage and add to a highly-competitive, diverse set of ancillary offerings, they further the appeal of their business to current and potential talent from Gen Z to baby boomers, Steinhoff says.     

"Benefits have always been an attractive proposition to bring on talent to an organization, and that will continue to be the case as the landscape gets more competitive," she says. "How do you get more innovative with what you provide to your employee population? How can you work alongside a carrier to design the benefits, or even your third-party administrator if you're self insured? Those things are going to be important." 

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If the goal of ancillary benefits is to boost employee care and satisfaction, simplifying their management is an essential component, says Steinhoff. She urges benefit leaders to expect a lot from the carrier and vendor partners who provide these offerings, and not settle for anything less than positive worker feedback.       

"That's like the gold standard they should be striving for, and how they should challenge us as carriers to administer these benefits on their behalf," she says.