Employee Benefits

In 2022, 159 million people were covered under employer-sponsored insurance in the United States. This is by far the most common way for an individual to obtain health insurance. It is also one of the most expensive line items on a company’s budget. As insurance premiums continue to rise each year, here are a few strategies to consider when designing your benefits program.

10 Employee Benefit Strategies you should consider:

  1. Fully Insured vs Self Funding

  2. Reinsurance Limits and Contract Terms

  3. Review your Pharmacy Benefits Manager and its contract

  4. Review your provider network and the access to care

  5. High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs)

  6. Individual Coverage Health Reimbursement Accounts (ICHRAs)

  7. Financial Education for your employees

  8. Wellness programs - Physical, Mental, Emotional, Financial and Spiritual

  9. Paid Time Off (PTO) and Flexible or Remote Work Schedules

  10. Stock Options or Profit Sharing Agreements

RESOURCES

Employee Benefits FAQs

  • Generally, you need a minimum of two unrelated people to start a benefits plan. As companies grow, different strategies become available to add value and lower cost to both the company and their employees.

  • There are two primary types of employee benefits: employer paid and voluntary benefits. Employer paid benefits are usually defined by the company paying 50% of more of the premium. Voluntary benefits are usually defined as the employee paying the entire premium amount.

  • Generally, you may start a benefits program the first of any month of the year. There are compliance considerations to how often you make changes to the plan, but you can normally make changes to your benefits plan each year in advance of the open enrollment period.

  • They can be! Generally speaking, Medical, Dental and Vision plans are paid with pre-tax dollars from both the company and the employees so long as the company has the appropriate legal documentation filed and operates the plan accordingly. Other types of coverage, like life insurance and disability insurance, may be handled differently. Please consult with your benefits advisor and appropriate tax advisor for more information.

  • The definition of eligibility can be different for every employer, but generally, benefits eligibility is for full-time employees. There can be certain benefits made available to part-time employees, but they are less common than benefits afforded to full-time employees.