As businesses struggle to attract new talent, many companies are starting to boost their employee benefits offerings. Because of this, many businesses are offering added benefit choices through various Voluntary Benefits packages. Aside from added benefits, employees also seek relief from continually increasing premiums, and are looking for more options when selecting health insurance plans.

As we exit the ravages of the COVID-19 pandemic, more workers are looking to their employers for relief. To help give them some relief from spiraling premiums and health care expenses, here are a few things you can do.

REDUCE THE EMPLOYEE’S SHARE OF THE PREMIUM

The employer could pay for a higher percentage of the premium, which would reduce the employee’s monthly contributions. If that’s not feasible, one tactic that can save you and your employees money is offering to either

• Pay a certain portion of the premium if they choose a silver plan, or
• Pay for the entire premium for those who choose bronze plans

The trade-off for employees who choose the latter option is having no premiums, but more out-of-pocket expenses throughout the year. If you are thinking about taking this route, we can help you crunch the numbers to see how cost-effective it would be for you.

The other option is offering to pay for a greater percentage of the premium across the board on the policies you do offer. Obviously, that comes with added expense, but it’s not a strictly financial decision. More generous benefits packages can have the added advantage of helping you attract and retain key talent and generate employee loyalty.

OFFER MORE CHOICES

Offering more health plans for employees to choose from can be a win-win for everyone.  Younger, healthy employees that do not use health care services often can opt for a high-deductible health plan. These plans feature a lower up-front premium in return for the participant having to spend more out of pocket for services they access. If someone doesn’t use medical services often, this type of plan may be the right and most cost-effective option. On the other hand, those who see the doctor more often, typically older workers or employees with health issues, might be more inclined to go with a preferred provider organization (PPO), paying a higher premium in exchange for lower out-of-pocket costs over the year.

For the fifth year in a row, the percentage of companies that offer high-deductible plans as the sole option will decline in 2021, according to a survey of large employers by the National Business Group on Health. That may be a continuation of a trend, but the pandemic has also put an emphasis on improved employee benefits. Here’s a breakdown of the kinds of small group plans across the country in 2020, according to Kaiser Family Foundation:

• PPOs covered 47% of workers
• HDHPs covered 31%
• Health maintenance organizations (HMOs) covered 13%
• Point-of-sale plans covered 8%
• Conventional (indemnity) plans covered 1%

HIRE MORE EMPLOYEES

The more people in your group health plan, the more the risk is spread around, which can yield lower premiums. If you divide the risk amount of a small group of workers compared with a large group, the law of averages dictates that the insurer will pay less in claims per worker in the larger group. In other words, the more staff you hire, the more risk is spread around and as a result, the insurer can offer a greater premium discount.

TALK TO US

Our benefits team can help you analyze your spending, and work to find the most cost-effective option for you and your employees. Let’s make your benefits offerings attract and retain the top talent your company needs. Contact us today to find what options will work best for your business.