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Benefit Renewal… How can we control costs and still add value to our employees?

May 15, 2020

This season for many businesses is not only the holiday season it is also benefit renewal season.  In today’s market, health insurance costs continue to rise.  In order to contain costs many small businesses continue to have to decrease the benefit levels and value of the insurance coverage.  Some businesses are forced to discontinued offering health insurance because neither the business nor employees can afford the new premiums.

While this sounds discouraging, but there are some great new alternatives or additions to existing coverages that are low to no cost to employers and are highly valued by employees.

Direct Subscription Based Services

A new trend in the health care arena are subscription-based services.  There are companies offering almost urgent care like services on a subscription basis. In a recent meeting, a local chiropractor and dental hygienist spoke of new preventive care services they are offering to employers as a benefit to their employees.  Employers are selecting this new style of “benefits” due to lower costs than traditional benefits.  Some employers choose to pay the subscription fees, while others offer a cost sharing or just make it available for employees.  These services are typically a fraction of the cost of traditional health Insurance and highly valued by employees.

Supplemental Offerings

Coverages offered by supplemental insurance companies like AFLAC and Legal Shield (there are lots of choices out there)  are not only a benefit to employees, there are potential cost savings to the employer.  These companies offer policies to help cover those unplanned life expenses for your employees.  These policies can give employees piece of mind, but bonus to the employer some policies are pre-tax benefits.  What this means to the employer is lowered payroll tax liability with no additional business expense.  Offering a benefit to your employees that cost nothing and decreases overall payroll tax liability is a double bonus.

In my experience there are great agents and not so great agents.  Find a great agent that fits your business style and they will make it easy to offer great benefit with not additional work for you or your staff.