kthompson
Well-Known Member
To begin with I am not trying to solicit business, I am a local agent with 30 years in this industry and only trying to share some ideas that can help you lower your health insurance cost. Some of you are doing all these things while others may benefit. I am only licensed in the State Of South Carolina so will be working off of SC law and there are differences in laws between each state so verify in your state.
I work with small business in their employee benefits and very much realize it is a big bit. In the last few years have seen more and more companies trying to figure out what to do with the rising cost. Here are some possible things that MIGHT work for you.
First if your company has more than 50 full time employees or full time equivalent employees (they take the part time and figure the total hours they work to come up with how many full times that equals) you have a FEDEERAL obligation to offer your employees AFFORDABLE qualified health insurance.
Not picking on any company here just using names to help explain but if your company offers say coverage form AFLAC or Colonial it is does not met the standard of QUALIFIED health plan.
Look at your employees and if you have any who are on Medicare it may be best for THEM to leave the group plan and go fully to Medicare with Supplement Coverage, it may not be in their best interest but most often it is.
Look at employees who have spouses who work for a company that provide very low price coverage for their spouse (your employee). Might need to set up some form to reimburse those people for the cost on the other plan.
If the info on the employees correct as to date of birth, use of tobacco, zip code where they live?
Depending on the health of your employees a LIMITED SELF INSURED plan might a great option.
Offer "dual Plans" which it two maybe three plans to your employees with the company contributing the lower price plan and allowing them to buy up to better coverage if it is worth it to them.
If you want to offer additional coverage look at doing so with "GROUP" plans rather than the plans that really are individual plans just being billed to the company to payroll deduct the premium. They are often most costly and offer the company little benefit. You can offer group plans on many products such as disability or cancer where the employee pays the full price. Many do not realize they are offer a name they know very well due to ads but is one of the most expensive options there is.
Consider pretax plan for the premium the employee pays.
NEVER pay 100% of the employee's cost. They need some skin in this so they understand when price goes up and what you are up against. To add to this NEVER sign contract saying you are paying 100% even if you are. You do and the insurance company requires ALL employees to be insured even if they have better coverage free elsewhere.
If you have less than 50 employees your state may have a requirement you offer coverage but the Federal Law does not.
DO NOT PAY ANY PART OF AN EMPLOYEES COST FOR A PLAN THAT IS GETTING A TAX SUBSIDY. Can cause you a problem with the Feds.
There are some other things to consider once in a big while but think have the most common things covered here. One thing I will add here is find an agent who will sit down with your or your HR person and listen to your needs and offer suggestions. Your lower paid employees do not care the insurance will pay an unlimited amount on their medical bills when they can not afford to go see doc and by the medicine. I like the Health Savings Account plans but would tell you if you go that way DO FUND THEIR ACCOUNT at least $500 per year to give them the money so they can afford to se doc and get medication need to be back at work. It will save your business compared to the employee who can not afford those needs so comes to work sick and is at best running say 50% level or worst and is dangerous plus sharing their sickness with the others.
Again this is general and your business is not, you need an agent who can help plan for your business in its needs and size.
I work with small business in their employee benefits and very much realize it is a big bit. In the last few years have seen more and more companies trying to figure out what to do with the rising cost. Here are some possible things that MIGHT work for you.
First if your company has more than 50 full time employees or full time equivalent employees (they take the part time and figure the total hours they work to come up with how many full times that equals) you have a FEDEERAL obligation to offer your employees AFFORDABLE qualified health insurance.
Not picking on any company here just using names to help explain but if your company offers say coverage form AFLAC or Colonial it is does not met the standard of QUALIFIED health plan.
Look at your employees and if you have any who are on Medicare it may be best for THEM to leave the group plan and go fully to Medicare with Supplement Coverage, it may not be in their best interest but most often it is.
Look at employees who have spouses who work for a company that provide very low price coverage for their spouse (your employee). Might need to set up some form to reimburse those people for the cost on the other plan.
If the info on the employees correct as to date of birth, use of tobacco, zip code where they live?
Depending on the health of your employees a LIMITED SELF INSURED plan might a great option.
Offer "dual Plans" which it two maybe three plans to your employees with the company contributing the lower price plan and allowing them to buy up to better coverage if it is worth it to them.
If you want to offer additional coverage look at doing so with "GROUP" plans rather than the plans that really are individual plans just being billed to the company to payroll deduct the premium. They are often most costly and offer the company little benefit. You can offer group plans on many products such as disability or cancer where the employee pays the full price. Many do not realize they are offer a name they know very well due to ads but is one of the most expensive options there is.
Consider pretax plan for the premium the employee pays.
NEVER pay 100% of the employee's cost. They need some skin in this so they understand when price goes up and what you are up against. To add to this NEVER sign contract saying you are paying 100% even if you are. You do and the insurance company requires ALL employees to be insured even if they have better coverage free elsewhere.
If you have less than 50 employees your state may have a requirement you offer coverage but the Federal Law does not.
DO NOT PAY ANY PART OF AN EMPLOYEES COST FOR A PLAN THAT IS GETTING A TAX SUBSIDY. Can cause you a problem with the Feds.
There are some other things to consider once in a big while but think have the most common things covered here. One thing I will add here is find an agent who will sit down with your or your HR person and listen to your needs and offer suggestions. Your lower paid employees do not care the insurance will pay an unlimited amount on their medical bills when they can not afford to go see doc and by the medicine. I like the Health Savings Account plans but would tell you if you go that way DO FUND THEIR ACCOUNT at least $500 per year to give them the money so they can afford to se doc and get medication need to be back at work. It will save your business compared to the employee who can not afford those needs so comes to work sick and is at best running say 50% level or worst and is dangerous plus sharing their sickness with the others.
Again this is general and your business is not, you need an agent who can help plan for your business in its needs and size.
