Employee Benefit Programs Start with Good Health Insurance Programs

With over 155 million people covered by employer-based health insurance, it proves to be one of the most popular benefits today. Providing group coverage can help businesses gain a competitive edge during hiring, retain their best employees, and enhance overall workplace satisfaction!

A study conducted on LinkedIn shows that when companies provide great perks for workers, such as competitive salaries or generous healthcare coverage, it motivates them to not only stay healthy but also to work harder at performing tasks compared to those without any formative benefit package whatsoever!

Health insurance, in most cases, is the main component of your employee benefits program, and it is usually the first thing that employees will ask you about when they are looking to come on board with your company.

Unfortunately, most business owners and HR professionals do not fully understand their options for this endeavor and often make decisions without being fully educated or understanding how their current plan is performing.

What You Need to Know About Healthcare Benefits

Here are a few questions we recommend all business owners review and understand before making their decisions each year:

How is your plan running, and what does your claims data look like?
Did you even know you could get claims data?
Could you do better on a self-funded plan if you are fully insured?
Do you know the difference between fully insured and self-funded options? In a small group (under 50 employees), this can mean a significant difference in pricing.
Who is handling the servicing of your plan? Are you doing it? Are you paying a monthly fee for an HR admin or payroll company to take care of it for you? Is it being done at all?
Do you have dedicated service contacts, or have you and your employees been outsourced to generic email addresses and 800 numbers? (Big agencies and payroll companies like to do this quite a bit to SMBs – they love the commissions they get but don’t want to really ever talk to you after they sell you a policy).

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Self-Funding and Fully-Insured Healthcare Plans

There are a few types of plans.

Self-funding, aka Level Funding, for small and medium-sized businesses, can sometimes make sense. If you have an overall healthy population and are ok getting your hands dirty, your elbow grease-inducing efforts could save you 25 – 30% on your insurance costs.

On the contrary, if your population is a little older or has some health risk, it might make sense to look at fully insured plans where there is no risk analysis done and pricing is based on demographics alone.

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Holloway Has You Covered

It is time to take the next step and offer your employees health benefits. It will be an exciting achievement you’re proud of, but some things are worth considering before making this choice. The proper benefits program can help recruit new talent and give peace of mind knowing they’re doing what is best for their team members by providing coverage!

Are you ready to have a tailored insurance plan for your small business? Our specialists are here to assist you in selecting the right kind of small business health insurance plan that is best for your company. Each program is tailored to your company’s unique needs.

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