10 King St.
Do you find employee turnover to be both costly and stressful? As an employer, you want to do everything in your power to attract and retain talent at your company.
And while salary is a driving factor, it’s not always enough to help you hang on to your best employees. The reality is, an employee may be willing to leave for another business offering comparable pay.
For this reason, employee benefits is the frontier where many businesses compete to retain great employees, and health insurance is widely regarded as the crown jewel of those benefits. Selecting the most affordable health care option might keep a few extra dollars in your pocket, but it also might be the difference between keeping your most valuable employees and losing them to your competitors.
Choosing a health insurance plan that balances your employees’ needs and your budget can be a difficult task. Working alongside my team and I, however, will make this decision that much easier.
An important first step to take when discussing potential health insurance plans is to assess your current employee group.
Are most of your employees young and healthy, or are they older with more health complications? Are most of them single, or do they have growing families with more dependents? Do they visit the doctor frequently, or do they limit their visits to no more than once or twice per year?
These are just a few of the many factors that should influence your choice of insurance plan. For example, if your employee group consists of predominantly mothers, you might consider a plan that includes maternity coverage as one of its benefits.
Your insurance plan should also be priced relative to your employees’ salaries. If an employee’s annual salary is $30,000, expensive premiums or unreasonable deductibles might very well force them out of the job
When it comes time to choose a health insurance plan, it’s easy to become overwhelmed by the different plan types that are available. After considering the needs of your employee group, however, you should be able to narrow down your options.
In most cases, you will be weighing the benefits of the two most popular plan types, health maintenance organizations (HMOs) and preferred provider organizations (PPOs).
HMO plans are typically more affordable than PPOs and other plan types, but they also come with greater restrictions. With an HMO plan, an employee is required to visit an in-network health care provider in order to receive benefits.
If the employee’s current physician is out of network, he or she can choose to continue visiting that physician but will need to pay out of pocket.
Conversely, PPO plans are more expensive, but they offer greater flexibility. With a PPO plan, an employee can visit a physician who is either in or out of network and still receive insurance benefits. This doesn’t, however, guarantee that the insurance company will pay the same amount whether in or out of network.
You will need to think about your employees’ priorities when deciding on a plan type. Would your employees rather have the low monthly premiums of an HMO plan or the increased flexibility of a PPO plan?
If you want to provide your employees with great coverage while keeping costs down, you will need to address the following questions:
Ultimately, a great health insurance plan is one of most attractive benefits you can offer your employees. Again, in order to optimize your plan and ensure that it is tailored your employee group’s needs, it’s best to discuss all of your options in detail with a specialist.
Remember, you need your employees to be healthy, too! It’s in your best interest to provide a plan that encourages them to maintain good health.
As your Financial Advisor, my team and I are ready to help you with all of your health benefit needs.