Helping Employees Navigate Rising Health Care Costs
September 27, 2023
Helping Employees Navigate Rising Health Care Costs

Employers continue to struggle with rising health care costs and providing employees with affordable and quality care options. Unfortunately, employers expect health care costs to increase significantly in 2024, according to several industry surveys and reports. These findings revealed that employers anticipate health care costs to grow between 6.5% and 8.5% in 2024, the largest increase in more than a decade. As a result, employer-sponsored health care plans may cost more than $15,000 per employee.


For the most part, employers have avoided shifting increasing health care costs onto employees due to the tight labor market and ongoing attraction and retention challenges. Despite employers’ reluctance to shift the burden of rising costs onto employees, workers will likely pay more for health care as overall medical expenses increase. Health insurance costs are already among the biggest expenses for American families; therefore, employees will likely feel increasingly stressed and burdened financially as they are forced to pay more for care. As such, employers have an opportunity to support their workers by helping them navigate rising costs.


This article provides guidance to help employers discuss increasing health care costs with their workers and aid employees in mitigating these expenses.


Why Are Health Care Costs Rising?

Health care costs have increased relatively slowly over the last few years, in part due to decreased utilization during the COVID-19 pandemic and because insurer contracts typically are not renegotiated annually. However, several market conditions have recently led to steep increases in health care costs. For example, health care utilization has rebounded, resulting in medical plan costs returning to pre-pandemic levels. Utilization has especially increased for catastrophic claims and among individuals with chronic health conditions.


Inflation is also causing health care costs to rise. Hospitals and medical providers are increasing prices to address rising employee wages and supply costs. Additionally, consolidation among hospitals, physician practices and commercial insurers has resulted in higher health care prices for insurers.


Other reasons why health care costs are expected to increase in 2024 include the following:


  • Specialty and costly prescription drugs, especially the high demand for diabetes and obesity drugs
  • Cell and gene therapies
  • Technological advancements
  • Workforce shortages


These market conditions started affecting insurance rates and contracts in 2023, and their impact is only expected to grow in 2024. As a result, increases in health plan expenses are expected to impact all employers, regardless of size and whether they are fully or self-insured.


How Employers Are Responding to Rising Costs

While some employers may pass increasing health care costs onto their employees, many employers are expected to absorb most of the higher costs to remain attractive to top talent and retain their workforce. Instead, these employers are expected to embrace cost control initiatives, such as requiring prior authorization, utilizing disease management and adding nurse advice lines. Other strategies employers will likely implement to manage rising health care costs include wellness programs; plan design initiatives (e.g., offering high deductible health plans, requiring spousal surcharges or carve-outs and conducting dependent eligibility audits); and offering telemedicine, price transparency tools and centers for excellence.


Helping Employees Navigate Rising Health Care Costs

Even though most employers will not pass rising health care costs onto employees, how employers communicate changes and information related to increasing medical costs is critical. It presents employers with an opportunity to build trust, strengthen employee loyalty and reduce the risk of turnover. Employers should consider the following strategies for communicating with employees about rising health care costs.


Establish Key Messaging

How employers communicate about rising health care costs and any benefits changes to employees can often impact whether they are understood and accepted. By keeping key messaging simple and clear, such as focusing on new or updated benefits offerings, employers can better ensure that employees understand any changes. Clear and simple messaging can be repeated often, helping to distribute important health care and benefits information to the entire workforce.


If changes to benefits plans result in increased costs or reduced offerings for employees, employers can find ways to communicate not only takeaways but also givebacks (e.g., increasing employee premium contributions but adding certain supplemental benefits, such as transportation benefits). This allows employers to demonstrate to employees what they are doing to address rising health care costs and that they are mindful of employees’ financial burden due to increasing costs. This can help organizations get employee buy-in for any benefits changes and build loyalty and trust with their workforce, which can help improve productivity and attraction and retention efforts.


Communicate Changes to Employees

As organizations make changes to their health insurance plans and offerings to address increasing medical costs in 2024 and beyond, it’s important to clearly communicate those changes to employees. Failing to do so may result in employees paying for expensive and, in some cases, unnecessary care. This may include employees going needlessly out of network to receive care, resulting in increased medical costs. With this in mind, effective employee communication can help employers with implementing cost control measures.


Select Appropriate Communication Channels

Since every workplace is different, selecting multiple communication channels that are engaging and relevant to the workforce is essential. Leveraging technology can help employers communicate frequently and effectively with employees about changes to health care costs, benefits and offerings rather than simply relying on in-person or physical communication methods. Digital channels allow employees to access information when and where they need it. Still, in-person communication, on-site meetings and physical mailers can play an important role in communicating increasing costs and benefits changes to employees as well as ensuring these changes are understood and received.


Educate Employees About Health Care Costs

Employers can educate employees on the current state of the health insurance industry and how to effectively use their health plans to avoid unnecessary or high-cost care. By focusing on educating employees about any changes and rising costs, organizations can enhance the overall effectiveness of their communication methods and increase the likelihood that employees will accept them. Employers can also give employees a breakdown of total health care premiums and the portions paid by each party to help workers understand how medical costs impact a company’s bottom line as well as the total value of the benefits provided to employees. Additionally, employers can provide tools to help employees make the most cost-effective health care decisions.


Employer Takeaway

Helping employees navigate rising health care costs is an ongoing process, but it’s essential that workers feel properly informed about medical expenses, benefits options and mitigation strategies. Establishing strategies to communicate important information regarding increasing health care costs and benefits changes is vital to the health and well-being of an organization’s workforce. As health care costs will likely increase for the foreseeable future, employers who act now to address workers’ concerns regarding rising health care costs and provide actionable solutions can improve employee retention, increase productivity, strengthen staff morale and gain a leg up on their competition.


For additional employee benefits resources, contact us today.

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Your Guide to 4th of July Fun, Fireworks, and Celebrating Safely in Ontario County

June 30, 2025
The Fourth of July is almost here, and communities across Ontario County are gearing up for a weekend filled with parades, fireworks, and hometown celebrations. Whether you're heading out for live music and lawn games or simply enjoying time with friends and family, there are plenty of ways to celebrate locally. At Simco, we’re proud to support our neighbors with practical tips to enjoy the holiday safely, while making sure your insurance coverage is up to date and ready for the unexpected. Where to Watch Fireworks in Ontario County JULY 3 Farmington – Fireworks at dusk with food trucks and live music starting at 6 PM (Farmington Town Park) Honeoye Lake – The beloved “Ring of Fire” lights up the lake, with parking available at Sandy Bottom Park JULY 4 Canandaigua – Lincoln Hill Farms hosts an all-day celebration (1–10 PM) with fireworks after dark, music, games, and more. ($30 parking, cash only) JULY 5 Canandaigua North Shore – Keep the celebrations going with another round of fireworks at dark JULY 11 Geneva – Free Summerfest fireworks at 9:45 PM at the Geneva Recreation Center Parade Lineup JULY 3 Honeoye – Parade at 7 PM from United Church to Sandy Bottom Park. Stick around for the Honeoye Community Band and the Ring of Fire afterward! JULY 4 Canandaigua – The city’s annual 4th of July Parade kicks off at 10 AM from City Hall and heads south along Main Street JULY 12 Geneva – Firefighters Parade begins at 7 PM on Exchange Street, ending at the Geneva Rec Center for SummerFest festivities What Fireworks Are Legal in New York? While fireworks are a staple of July 4th, not everything that sparks and explodes is legal in New York State. Using illegal fireworks can actually void your insurance coverage if something goes wrong. What’s Allowed in NY: Ground-based or handheld sparkling devices (like cylindrical fountains or cones) Wooden sparklers/dipped sticks Party poppers Snappers (the small “pop” ones) What’s Not Allowed (and Not Covered): Aerial consumer fireworks Firecrackers Chasers Roman candles Skyrockets Bombs (even small ones!) Metal wire sparklers (they burn much hotter than they look) Quick Tip: If it launches into the sky or explodes, it’s not legal. Stick to sparklers and save yourself a potential insurance headache. Insurance Tips for a Safe Holiday A little awareness goes a long way in protecting your home, family, and peace of mind this 4th of July. Stay within NY guidelines. If an incident is caused by illegal fireworks, your insurer may deny the claim. Keep safety front and center. Supervise all activities involving sparklers or devices and keep water nearby for emergencies. Know what your policy covers. Not every homeowner’s policy includes damage from fireworks-related accidents. If you’re unsure, reach out. We’re happy to review your coverage. Report incidents quickly. Prompt reporting helps ensure claims are handled smoothly and effectively. From All of Us at Simco We’re wishing you a joyful, memorable, and safe Independence Day. Whether you’re lighting up the sky with sparklers or relaxing lakeside with family, we’re here to help you protect what matters most, before, during, and after the festivities. Have questions about your insurance coverage this summer? 📞 Call us at 585-394-5482 or visit our Contact Us page.

Understanding Accent Discrimination in the Workplace: How Employers Can Lead with Inclusion

June 25, 2025
As organizations continue to grow and diversify, the way we communicate at work is evolving, bringing new opportunities for inclusion as well as potential blind spots. One issue that often goes overlooked is accent discrimination: the tendency to judge, exclude, or undervalue individuals based on their speech patterns, dialect, or pronunciation. While accents are often rooted in geography, heritage, or culture, bias toward or against certain ways of speaking can influence decisions in hiring, promotions, evaluations, and daily interactions. For employers, particularly those in small to mid-sized organizations, understanding where this shows up and how to respond isn’t just about creating a respectful workplace. It’s also essential for risk mitigation and legal compliance. What Constitutes Accent Discrimination? Accent discrimination occurs when employees or candidates are treated unfairly due to the way they speak. This type of treatment may stem from overt, conscious bias, such as assuming someone is less capable based on how they sound, or from more subtle, unconscious preferences, like favoring those who speak in what’s perceived as a “standard” or “neutral” accent. Legally, accent-based discrimination can be considered a form of national origin discrimination, which is prohibited under Title VII of the Civil Rights Act. Many states reinforce these protections through their own civil rights laws. Employers should be aware that even unintentional practices, such as informal communication preferences or subjective feedback, can result in compliance issues or reputational damage. Clear Communication vs. Discriminatory Practice It is important to distinguish between legitimate communication needs and bias. In certain narrowly defined circumstances, an accent may be relevant to an employee’s ability to perform essential duties. For instance, in roles that require precise, real-time verbal communication, such as emergency response or high-risk operational jobs, an employer may need to assess whether a language barrier or speech pattern materially interferes with safety or accuracy. However, such evaluations must be backed by objective evidence and a clearly defined business necessity. Vague discomfort, personal preference, or client feedback based on unfamiliarity are not valid reasons to deny someone an opportunity. Any decision related to an accent must be both job-related and supported by measurable performance impacts. Standardize Hiring and Promotion Processes to Minimize Bias One of the most effective ways to reduce the risk of discrimination is by formalizing your hiring and promotion practices. Employers should examine whether their processes allow room for bias (conscious or unconscious) to influence decisions. Subjective impressions, especially in interviews or internal evaluations, can be disproportionately shaped by how a person speaks. To counteract this, companies should move toward structured, competency-based hiring frameworks. Use consistent criteria and scoring systems across all candidates, and rely on written assessments or role-specific tasks where appropriate. Similarly, promotions should be guided by documented performance metrics, not informal perceptions of professionalism or communication style. In doing so, not only do you reduce the chance for bias to affect outcomes, but you also make better staffing decisions that reflect skills, qualifications, and organizational fit: not speech patterns. Why This Matters More Now In today’s hybrid and remote work environments, the ability to navigate diverse communication styles has become even more important. With teams collaborating across geographic regions and cultural backgrounds, inclusivity in communication is essential for morale, cohesion, and productivity. Moreover, younger workers and job seekers are placing a high value on belonging and inclusion. Discriminatory or exclusionary behavior, intentional or not, can quickly erode trust and lead to disengagement or turnover, especially when tied to identity-based characteristics like accent or dialect. Employers who lead with fairness in communication are more likely to attract and retain talent, maintain strong teams, and avoid costly compliance missteps. Building a Culture Where All Voices Are Valued Ultimately, embracing different accents in the workplace is about genuine, judgment-free listening. Employers should encourage active listening practices, create space for respectful clarification when needed, and ensure employees feel safe speaking up, regardless of how they sound. Miscommunication is a solvable issue. Discrimination is not. Leaders who prioritize clarity, fairness, and consistency, rather than conformity, build workplaces that are both inclusive and high-performing. And the benefits go beyond compliance. They create environments where people thrive because they are heard and valued.

Balancing Holiday Time Off Requests Without Slowing Down Your Business

June 18, 2025
Between Independence Day, summer travel plans, and Labor Day on the horizon, time-off requests are about to pick up significantly, and with good reason. Employees need time to recharge, spend time with family, and enjoy the season. For employers, especially in small to mid-sized businesses, this means finding the delicate balance between fostering a supportive work culture that respects employees’ need for time away and managing the practical realities of maintaining adequate coverage, meeting deadlines, and keeping operations running smoothly. The good news? With thoughtful planning, clear communication, and the right tools in place, you can navigate this busy season effectively, ensuring your team gets the rest they deserve without compromising business continuity. Here are a few practical strategies to help you manage PTO during the summer months while keeping your business running smoothly:  1. Plan Early and Communicate Clearly Encourage employees to submit holiday PTO requests well in advance. Set a clear internal deadline (e.g., “All holiday time-off requests must be submitted by August 15”) and explain the process upfront, including: How requests will be reviewed and approved How overlapping requests will be handled Any blackout dates or essential coverage periods A clear and consistent approach eliminates guesswork, reduces friction, and helps everyone feel they’re being treated fairly. 2. Use a PTO Policy That Balances Fairness and Flexibility Your time-off policy should include guidelines for high-demand periods like Thanksgiving, Christmas, and New Year’s. Some companies use: First-come, first-served approvals A rotation system so everyone eventually gets prime time off A seniority or department-based system with built-in equity checks Whatever method you choose, consistency is key. A well-documented policy gives managers a framework to follow, and gives employees peace of mind that decisions are made justly, not arbitrarily. 3. Leverage Your HCM or Scheduling Technology If you're using a system like isolved , you already have powerful tools to streamline the PTO process. Automate request tracking, visualize department coverage in real time, and flag conflicts early to avoid blind spots. This gives HR and team leads the visibility they need to make smart, timely decisions. Bonus tip: Use system alerts to notify managers when coverage is thin, or configure it to close PTO windows automatically after a set date. These features take manual work off your plate while protecting productivity. 4. Cross-Train and Create Holiday Coverage Plans Rather than scrambling when someone’s out, prepare your team to adapt. Cross-train employees in advance so they can cover essential tasks if a teammate is unavailable. Before the busy season kicks in, put together a simple holiday coverage plan that outlines: Who will monitor essential tasks (client inquiries, payroll processing, etc.) What needs to get done and by whom each week Who’s available for backup support if needed A little upfront planning makes a big difference in keeping service levels steady during staff absences. 5. Appreciate Those Who Step Up Don’t let holiday contributions go unnoticed. Employees who work through the holidays or shift their schedules to ensure coverage deserve meaningful recognition. Consider: Spot bonuses or incentives Public recognition in a team meeting or internal email Additional time off (comp time) after the holidays Even small gestures show your team that their flexibility and dedication are valued, and that you see the extra effort. 6. Set Expectations With Clients (and With Your Team) If your operations will run on limited hours or staffing during the holidays, notify clients and partners well in advance. Clear communication avoids surprises and sets realistic expectations. Internally, define what’s essential versus what can wait, especially to avoid employees overworking during slower periods. When everyone understands what’s expected, your team can better prioritize, delegate, and breathe a little easier during the season. Final Thought: Flexibility Builds Loyalty The holiday season is a test of your workplace culture. How you support your team, especially when juggling competing needs, leaves a lasting impression. Even when saying no to a request, doing so with empathy and transparency reinforces a culture of trust, fairness, and respect. And in return, you'll see greater engagement, improved morale, and a team that’s ready to go the extra mile — during the holidays and beyond. Need help building better time-off workflows or updating your PTO policies before year-end? Simco’s HR and HCM experts are here to help. Let’s talk about how to balance compliance, efficiency, and employee satisfaction, all year round.

Have a question? Get in touch.