It really depends on the finesse of the insurance/benefits advisors who are designing the group offerings. For example, at Quantum, when a client needs to downgrade benefits in order to manage the increasing costs of healthcare, we hold in-person enrollment meetings to explain why it needs to be done and often advise the employer to add other benefits (which don’t cost much but offer additional perks) to help soften the blow, such as life insurance, short-term disability or long-term disability coverage, HSA contributions, Section 125 plans, etc. When done carefully, the downgrades can sometimes become a win-win. However, with a ‘slash and burn’ approach, things never go well and we believe that in turn often negatively impacts corporate performance. A small investment on the side of generosity, made carefully under the guidance of expert brokers, usually proves worthwhile long term. But health insurance premiums have increased 300% over the last 15 years, so without a doubt, employee benefits present a challenge for employers more than ever before.