Why You Should Offer Your Employees Health Insurance

Do you own or manage a small business?

Are you wondering if you really need to offer health insurance to your employees? Are you thinking that many small businesses do not offer any health insurance and the government doesn’t require it so it is really worth it?

If you answered yes to any of these questions, you are not alone. However, it is beneficial to both you and your employees to have small business health insurance.

Here’s why:
1. You want to make your employees happy. You value the people that work for you each day and want to offer them affordable health insurance as a reward.
2. You want to hire and keep the best employees. The fact that a company offers health insurance may be a make it or break it factor when a new employee is choosing between possible jobs or a current employee is deciding whether to stay at a job or look for a new one.
3. Tax deductions. Did you know that 100% of insurance premiums are a business tax deduction?
4. Increased productivity and decrease in absenteeism. Employees that know they will be covered if anything should happen to them are more likely to attend work every day and work to
their potential. This may occur because preventative care measures are being taken by employees who have health insurance, thus avoiding potentially more serious health problems.
5. Pre-tax premium contributions. When employees access group health insurance through an employer, their share of the premium is taken out of their paycheck before taxes are taken out.
This is more beneficial to an individual than paying with after-tax money, which is what they do if they have to purchase individual health insurance on their own.
6. Cheaper group rates. Group rate health insurance can be much less expensive than individual health insurance. Plan coverage can also be much more comprehensive.
7. HAS’s. Health Savings Accounts offer a flexible way for business owners to offer health insurance while keeping their costs at a minimum.
Take another look at your company and your employees. Decide what your specific needs are and find a plan that fits those needs. Insurance companies offer plans for small businesses as small as 2
individuals and as large as 50 employees. Whatever your reason is for looking into health insurance for your company, contact a trusted advisor in this area to learn more.

Marketing Your Employee Benefit Program

According to a 2007 study, more than two-thirds of employers feel that their employees don’t fully comprehend the value and costs associated with their insurance benefits. At the same time, two out of five employees say they don’t know which options are most appropriate for them and their needs and would like additional education and assistance with planning their benefits program. Clearly communicating and marketing employment benefits can greatly help both employees and their employers. Such efforts convey a message that the employer is attempting to help employees manage their health and well-being, resulting in positive recruiting efforts and employee retention.

Most employees have a general understanding of the healthcare but are not well versed in specifics such as the cost to the employer. It is shocking when they learn that their employers spend 20% to 40%of the employees’ wages on benefits. Issues such as cost sharing and consumer-driven health plans add to the confusion. While recent studies indicate healthcare premium trends are finally on the decline, employees are still experiencing increased co-pays, deductibles and premium contributions.

There are several ways employers can most effectively communicate employment benefits:
1. Open Enrollment is an employer’s opportunity to highlight their benefits program each year. An employer’s Benefits Broker/Consultant can facilitate this process by holding open enrollment
meetings, webinars, and developing user-friendly communication pieces highlighting the benefit programs.
2. Highlight benefits in employee newsletters and offer “lunch and learns” to provide constant communication with employees.
3. Develop and maintain a benefits portal within the corporate Intranet or HRIS, providing a resource where employees can access up-to-date information regarding their benefit programs.
4. Implement an online enrollment benefits management system whereby employees can:

a) Access their account and view/update their benefits enrollment information.

b) Hyperlink to carrier and vendor websites in order to view physicians and claims.

c) View list of FAQs to help employees understand how to best utilize their benefits, i.e. how to access a doctor and/or obtain a referral.

5. Provide new hire orientation meetings for all newly eligible employees.
6. Train your Human Resources team to ensure they can clearly communicate the value of the entire benefits package to your employees.
7. Hold a Health Fair every couple of years. A health fair provides a venue for employees to interact directly with the carriers and vendors. It is a non-threatening environment for employees to obtain
information about health & wellness, prevention, and additional resources available through their health plans.

Both employees and employers can feel the negative effects of insufficient communication and marketing of employment benefits. Employers can face difficulty with respect to employee recruitment and retention. Employees, in turn may suffer from poor morale if they feel their company undervalues them, contributing to a negative work environment. Conversely, when a company shows it cares about its employees, both parties can greatly benefit from the advantages of open communications and a well-informed, strongly motivated staff. Proper marketing of the benefit plan is critical to communicating the real value to the employees. If done properly, the employer will reap increased overall employee satisfaction.