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A few years ago, the Journal of Health Economics found that 86 percent of Americans couldn’t define the basic terms associated with their health insurance – deductible, copay, coinsurance, and out-of-pocket maximum. And in 2016, a survey by PolicyGenius found that 96 percent of Americans overestimate their understanding of these terms, with only 4 percent able to define all four of the above concepts. The correlating result? This lack of knowledge or true understanding is likely leading to increased – and possibly unnecessary – healthcare spending.

PSI – shorthand for partial self-insurance– is a highly effective way for nonprofits to provide employees with access to quality, affordable health insurance without eating away at fragile budgets. But many organizations, stuck in the staid method of traditional fully-funded insurance, likely haven’t been exposed to PSI. This could be due to myriad factors, including a lack of willingness on their broker’s part to explore alternatives because of the high commissions earned from some fully funded plans (e.g. lower deductible/higher premium plans).

Nick Otto writes for Employee Benefit News about the strategies employers are using to keep their healthcare benefits offerings competitive and attract and retain talented employees.

This article by Katie Kuehner-Herbert for Benefits Pro discusses how many Americans - even those with insurance - are skipping doctor's visits because of high out-of-pocket costs.

In many organizations, HR departments are often solely responsible for making decisions around employee healthcare, with CFOs and other leaders coming onboard for final approvals.   However, key player involvement – especially from the CFO – early in the process can be a game-changer when it comes to creating a more effective and well-rounded healthcare program for staff.

CFOs (should) play a critical role in supporting decisions around employee healthcare, going beyond simply signing off on the budgetary needs. The process begins early by getting curious and asking tough questions about how healthcare spending has been tracked and audited within the organization, and where there is opportunity for more savings.

A recent study from DirectPath, an employee engagement and healthcare compliance technology company, has found that employers are looking for “creative methods” to slow down healthcare costs.

Healthcare is one of the biggest line items in a nonprofit’s budget, but CFOs are often on the periphery of the decision-making process. However, making a well-rounded decision that focuses on both the budget and employee satisfaction requires that CFOs become more intimately involved in employee healthcare management, working closely with other key players such as the CEO and HR manager.

Image: SHRM

Todd Hixton, contributor for Forbes, takes a look at how small businesses are faring under the uncertainty of healthcare these days. He poses the question, "What health benefit strategy makes sense for small businesses until the direction of the new administration becomes clear?"

Bruce Y. Lee, a contributor for Forbes, writes about how the types of health insurance available can make a difference in what jobs people take.