Table of Contents
Key takeaways
- Many businesses are aiming to reduce their benefits spending in 2025.
- For brokers, there is an opportunity to discuss value and explore alternatives to traditional insurance, such as prepaid plans.
- Offering VCD prepaid vision plans is a great strategy for catering to employers who want to shift costs to employees and offer more value.
What happens to benefits when the economy (and hiring) slows down?
Many businesses reduce their spending on perks and allocate that budget to other important expenses.
For brokers, lower budgets create a tough situation. Fewer employers are considering upgrading or purchasing new benefits, and those in the market for new perks are seeking the best value possible.
With more businesses cutting employee benefits costs, it’s time to adapt and focus on budget-friendly options.
Shifting Costs to Employees: Why Tiered or Modular Plans Are Best
Hiring is slowing down, and many employers aren’t viewing benefits as a means of retaining employees when the job market is uncertain.
As HR teams see their budgets drop, a common solution is to shift benefits costs to the employees.
To avoid turning perks into a burden for the workers, it’s important to offer flexible options:
- Tiered and modular plans are ideal. They allow employees to opt in and choose the level of benefits that best suits their needs and budget.
- You should also consider offering plans that are compatible with pre-tax contributions. If employees can pay for their benefits with pre-tax dollars, they end up saving.
Guide the Conversation Toward Value
When employers are hesitant about spending money on benefits, they might look for the products with the lowest premiums possible.
Instead of focusing on low costs, it’s a good time to discuss value. The truth is that the plan with the lowest premiums rarely offers good value.
There are some powerful arguments you can use to frame vision plans as an affordable and valuable perk:
- There is a direct correlation between good vision and workplace performance.
- A vision plan that makes annual exams more accessible can catch eye vision issues before they hurt productivity.
- Vision benefits are something everyone can utilize to cover the cost of an annual eye exam. It’s not just something that creates value for those who wear glasses.
- You can also discuss the needs of aging employees and their changing requirements. Offering a vision plan can boost satisfaction and ensure a business doesn’t lose the valuable expertise of its oldest employees.
Help Employers Understand Out-of-Pocket Costs
Businesses aren’t the only ones cutting their budgets. Employees are looking to spend less, too, which means plans with high out-of-pocket costs won’t lead to high satisfaction (especially if the upfront costs have been shifted to the employees).
As a broker, you can guide employers toward plans with:
- Transparent out-of-pocket costs.
- Access to a large local network of eye doctors.
- Real savings on services employees need, not just low premiums with limited coverage.
For instance, VCD offers prepaid vision plans that provide employees with access to negotiated savings through one of the largest networks of optometrists in Oklahoma. When they get new glasses, employees can save around $300 thanks to these transparent savings and plans with no restrictions on labs.
Explore Alternatives to Traditional Insurance
Another way to help employers save on benefits is to replace traditional insurance products with prepaid plans.
Prepaid plans offer transparent pricing models and a simplified administrative process, with no complex reimbursements. This helps HR departments save time when presenting benefits and managing enrollment.
For employees, prepaid plans create value in the form of affordable perks that are easy to understand and use.
These plans are a great match for large employers looking to save on benefits, and they’re flexible and affordable enough if you have customers looking for small business vision plans.
Simplify Benefits With Vision Care Direct of Oklahoma
The demand for cost-saving employee benefits is increasing as more businesses reassess their spending on benefits.
For brokers, there is an opportunity to discuss value and present prepaid plans as a transparent alternative to traditional insurance, making real savings more accessible for everyone involved.
If you’re not part of the VCD family of brokers yet, it’s time to look into offering our flexible vision plans as part of your portfolio. You’ll earn a flat 10% commission and have access to a selection of prepaid vision plans compatible with pre-tax contributions.
Learn more about becoming a VCD broker here.
FAQ
What are prepaid vision plans?
Prepaid plans offer transparent, negotiated savings at network providers without complex reimbursements. Employees pay upfront and access pre-negotiated savings on eye exams and eyewear.
Why are businesses cutting their benefits budgets in 2025?
As the economy and hiring slow down, many businesses are reallocating their benefits spending to other priorities and seeking more cost-effective options.
How do vision benefits improve workplace productivity?
Vision plans make annual eye exams more accessible, helping catch vision issues early before they impact employee performance and productivity at work.
What should employers look for beyond low premiums?
Employers should prioritize value by seeking plans with transparent out-of-pocket costs, large provider networks, and real savings on services employees actually need.
How can prepaid plans help HR departments save time?
Prepaid plans have simplified administrative processes, eliminating complex reimbursements, which makes benefits presentation and enrollment management much easier for HR teams.
