Employee Benefits – No Matter Your Company Size

Penny Horton | November 29, 2019

It’s Time to Talk about Benefits

It’s November, and that means it is not just the holiday season. It’s also the season for benefits open enrollment. And just like trying to find the right gift for the people on your holiday gift list, it can take time, attention, and creativity to come up with the right benefits options that meet your employees’ needs at a cost that works best for your budget.

Under the Affordable Care Act, employers with 50 or more full-time employees must provide health insurance for their staff. Companies with fewer than 50 full-time employees aren’t required by law to provide health insurance, but there are other reasons to consider doing so.

At this time of year, Who’s Your HR? gets many questions about handling benefits. To help answer some of those questions, here are practical facts and tips about benefits options to keep in mind as you plan for the needs of existing and potential staff.

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Large Employers: Use a Benefits Broker

As with finding personal insurance, it is smart to do your homework, weigh the costs, and compare options before deciding on a benefits package for your company. Most employers that are required to offer benefits opt to utilize a benefits broker who is knowledgeable and can navigate the complexities to arrive at the right solution for your business.

A good benefits broker will not just gather information. They should partner with you to:

• Assist your company in shopping around to discover available benefits options
• Find optimal coverage at the most cost-effective price
• Make recommendations based on the packages available and your budget
• Ease the process of working with insurance companies and benefits providers

Small Employers: Approach Benefits Creatively

The process of finding and selecting benefits packages is trickier for smaller employers. Benefits are incredibly expensive for businesses to provide, yet most employees consider benefits options as an essential factor in deciding to accept or turn down a job offer. Health insurance in particular is extremely important to offer if at all possible, as it keeps employees engaged and is an effective tool to both attract and retain staff.

As a result, while there is no legal requirement for companies with fewer than 50 full-time staff to provide insurance, many small companies choose to do so voluntarily. For small employers to find the balance between benefits options and available budget, it is essential to get creative.

It’s not unusual for small business owners to need assistance in determining what they can offer their employees. While it’s easy to assume that all the benefits options are cost prohibitive, the truth is that there are several options a small business can offer employees, with little to no cost out of pocket.

Think Outside the Traditional Health Coverage Box

Beyond traditional health insurance policies, there are several other cost-effective options to investigate. Taken together, these benefits can help cover health costs for employees. Employers can simply offer these to employees without subsidizing any costs. However, they can be quite appealing to workers if the employer pays a portion of the costs:

• Direct Primary Care — An affordable option that appeals to many employers and employees alike, Direct Primary Care is growing in popularity. Rather than filing insurance claims and paying whatever the insurance company doesn’t cover, patients pay physicians directly for healthcare services. Patients pay a membership fee to receive primary care. This fee is typically much more affordable than the premiums of traditional health insurance policies.

• Healthcare Sharing Programs — In these programs, consumers join together to share the costs of healthcare. Members contribute a monthly share to the program, and the money is distributed to those with medical expenses in accordance with the program’s guidelines.

• Supplemental Insurance — This optional form of insurance helps to cover the costs incurred by individuals and families when a hospital stay is required for their healthcare. When obtained via a group plan, employers can receive a discounted rate to offer their employees, and the premium cost can be withdrawn from the paychecks of employees who opt in.

• Benefits for Native Americans — Oklahoma’s native American population has access to additional healthcare coverage options. Many options are available for those who are members of a federally recognized tribe.

Don’t Forget Other Benefits

• Retirement — Like health insurance, retirement benefits are not required by law to be offered by small employers, but they do appeal to employees. Choices such as a Simplified Employee Pension Plan (SEP IRA) or a Savings Incentive Match Plan for Employees (SIMPLE IRA) can be great options for small businesses.

• Other Perks — Small businesses may be able to offer creative perks such as flex hours, remote work, and other options that also add value and appeal that attracts and retains employees.

Get Help Developing a Creative Benefits Program for Your Business

Whether you have a large business or a small business, open enrollment time can be busy and stressful. But it doesn’t have to be. Who’s Your HR? can assist you by coordinating tasks with a benefits broker, drafting policies that cover perks such as flex hours, and more. Contact us today to set up a consultation.