For the city of Brighton, Colorado, meeting the needs of a wide range of employees' manual and office workers, singles and families'and doing it on a city council-approved budget, takes a lot of forethought.

So, three years ago when Brighton (population 35,719) faced a medical spend increase of 18 percent, it moved to a self-funded benefits model. This not only helped the city stabilize medical costs, but it also meant it would own its own medical trend data, a benefit that could help support employee health risks down the road. By owning the data, it can explore the health issues that affect employees and better match benefits to support employees' needs.

Essential to the self-funded strategy is offering a range of voluntary benefits (VBs) to minimize any coverage gaps for employees. Sounds simple, but Brighton faced a number of challenges in doing so.

For one, it needed to enhance the existing VBs offering to improve staff health and productivity; and second, it needed to increase employee engagement around the VBs in order to compete with area employers to attract a multigenerational workforce in both field and desk jobs.

Working with a benefits adviser, Brighton was able to create a three-year strategic plan that would not only add more voluntary benefits but also institute an employee benefits education campaign focused on their adoption.

A New Take on Voluntary Benefits

During the first year of the new VBs campaign, Brighton rolled out three additional benefits—a telehealth program, a critical illness policy, and an accident plan. Strategically chosen to bridge gaps where city employees needed it most, the new VBs experienced high participation rates almost immediately.

Wellness benefits built into the critical illness and accident plans resulted in VB premiums at little or no cost for employees when covered individuals get an annual well visit, as well as group and one-on-one meetings with a benefits counselor who educated all employees on the benefits of VB participation.

Telehealth coverage. Brighton employees enjoy the convenience and alternative access to a physician after hours using mobile access, which minimizes emergency room visits and doctor's office copays. Avoidance of unnecessary doctor and ER visits led to a 210 percent return on investment for the city in the program's first year.

A win-win for employees and employers alike, telehealth coverage typically drives down use on core medical spending and helps maintain employee productivity by reducing sick days off work.

Critical illness policy. The critical illness policy helped employees, of which 45 percent participated in year one, bridge coverage gaps left by their high-deductible medical plan, including paying for a second opinion, specialist care, experimental treatment, or even natural and homeopathic treatments.

Accident plan. One of the most popular VBs with 65 percent participation the first year, the city's new accident plan helps cover medical costs related to emergency treatment and treatment-related transportation and lodging—expenses that aren't covered by many core medical plans.

Multiyear Plan Benefits

Essential to building lasting change for any group is creating a multiyear benefits plan that looks at a company's culture, employee mix, current benefits offerings, and goals.

For Brighton's city council, the three-year strategic plan serves another critical purpose. It allows for council approval before any financial commitments and changes are made, a step that builds in time to vote on budget changes and solicit councilmember feedback ahead of implementation.

When creating the three-year strategic benefits plan, the city considered these five elements:

• Plan design: A map of VB options to roll out in subsequent years, including life insurance with long-term care.
• Funding: Maintaining affordable annual premiums for VBs.
• Employee premium contributions: What is reasonable for employees?
• Financial and lifestyle considerations: What VB options will help employees minimize coverage gaps? Which innovative solutions support employee financial and lifestyle needs?
• Communication and education: Are we leveraging the right resources to educate employees?

For Brighton, providing employees with the best benefits options and quality service, while maintaining the city's status as a competitive area employer, are all top priorities.

The city knew its benefits strategy was making a real impact on employee recruitment and retention when new employees were handed an explanation of the benefits and one person exclaimed: "Wow! This is your benefits package?"