Why Invest in Employee Benefits?
Manage Risk & Improve Cost Savings.
When employees are incentivized to take charge of their health, manage chronic conditions, and make smarter health decisions, you’ll see cost savings in your premiums as well.
Recruit & Retain Top-Tier Employees.
Employee benefits give your business the edge when competing for talented employees, while increasing loyalty among staff. When you take care of your employees, they take care of you.
Improve Productivity & Achievement.
Benefits packages give employees a sense of well-being that combines with improved health to create a more productive, loyal, and invested workforce.
Group Health Insurance
Group health insurance plans are the most common employee benefit offered by employers. In a fully insured model, the employer pays the premium to an insurance company, who manages the claims, costs, and services. In these types of plans, the risk is spread over the company based on the number of participants in the plan, which means costs may go up if your company has more claims paid in a year than expected.
Most of these plans operate under either a PPO or an HMO structure. In a PPO, employees receive care from their choice of provider, but they receive preferred pricing when visiting a provider within the PPO network. In an HMO, employees also choose from a list of contracted providers, but there are limited benefits outside of the HMO network.
In a partially self-funded plan, an employer chooses to pay a certain amount of employee claims themselves in exchange for the opportunity to manage costs and increase potential savings. These types of plans are called partially self-funded because the company pays a pre-determined amount toward claims, and then contracts with a reinsurance carrier to cover any amounts beyond that threshold. This arrangement allows employers to limit their financial risk and reap rewards.
Employers using a partially self-funded model have the opportunity to manage claims and keep costs transparent. Partially self-funded plans can be a good match even for smaller companies. We can discuss which benefits options are best for your company.
FSA & HRA Accounts
Employee medical benefits can also take other forms. One option for employers is a Health Reimbursement Account, or HRA. These accounts are employer-funded and employer-owned, offering employees a tax-free reimbursement for qualified medical expenses up to a certain amount. Any unused amounts can roll over from year to year, offering employees a financial safety net for unexpected health care expenses.
Another benefit option is a Flexible Spending Accounts (FSA). FSAs give employees the option of putting money, before taxes, into a specific account which can only be spent on approved out-of-pocket health care expenses. Employers can contribute to the account if they choose, as well. In most cases, the funds saved in an FSA must be used within the plan year, encouraging wellness visits like dental and vision care that might otherwise be postponed.
Dental & Vision
Offering dental and vision coverage to your employees will put you ahead of the game as an employer. This coverage offers tremendous benefits and satisfaction to your employees. On a purely practical level, dental and vision checkups offer benefits to your business as well.
Dental and vision coverage encourage regular checkups that avoid future problems and help diagnose underlying conditions, which can then be managed effectively to minimize potential complications and further claims costs. Employees benefit from dental and vision coverage physically, emotionally, and financially–and those benefits funnel into increased productivity and decreased costs. Employee dental and vision plans are often not cost-prohibitive but offer maximum value to your employees and their families.
One of the biggest safety nets you can offer employees is a life insurance policy. Recent research in the insurance industry has suggested that a little more than half of adult Americans have life insurance and those that do are underinsured. Offering life insurance benefit options and education is a financial and emotional benefit that speaks volumes about your commitment to your employees.
Our life insurance options are a group life model, primarily paid for by the employer. However, we also can offer employees the option to buy additional life insurance up to a guaranteed issue amount, with no health questions asked. Employees also have the option to buy coverage for spouses and children as well.
Another safety net benefit option for employees includes both long-term and short-term disability insurance options. Short-term disability insurance covers an employee temporarily when he or she experiences a loss of income during an illness or as a result of an injury or accident. This coverage provides a percentage of income to the employee when they meet certain criteria. These plans typically pay a benefit for up to three or six months.
Long-term disability insurance begins when short-term disability coverage ends, or after three to six months, and also pays employees a percentage of their income. Usually the policy has a specific period of time for which it will pay, and most employees prefer a policy that pays until that employee reaches 65 years old (when Medicare takes over).