How do you attract the best employees? How do you keep your best employees from jumping ship? According to SHRM, 60% of employees rate their benefits package as very important to their job satisfaction (source). Heading the list of must-have benefits is medical insurance, but many job applicants may also demand a dental plan, disability insurance and more. Tell these applicants you offer no or minimal benefits and often top-flight candidates will head for the door. Offering a comprehensive benefits package to your prospects and current employee population could make all the difference in the quality of your workforce!
- Preferred Provider Organization (PPO)
- Health Maintenance Organization (HMO)
- Point-of-Service Plan (POS)
- High Deductible Health Plan (HDHP)
- Health Savings Account (HSA)
- Health Reimbursement Arrangment (HRA)
Ancillary Plans (Employer Paid & Voluntary)
- Life and Accidental Death & Dismemberment Plans
- Disability Plans
- Long-Term Disability
- Short-Term Disability
- Off-The-Job Accident Insurance
- Wellness Programs
- Employee Assistance Programs (EAP)
- Retirement Plans
- 401(k) & Profit Sharing
- Deferred Compensation
- Estate Planning & Wealth Management
Cost Containment Strategies
Worried about the cost of offering benefits? Arizona Benefit Consultants offers a variety of strategies to mitigate and manage these expenses. Effective strategies will combine a creative approach to plan design alongside a benefits centric company culture.
Plan Design Options
- Traditional Plans VS Consumer Driven Health Plans (CDHP)
Traditional plans such as PPOs and HMOs can be creatively utilized within an overall benefits package, but they leave the insurance provider in the driver’s seat. Consumer Driven Health Plans such as Health Savings Accounts (HSA) and high deductible plans can provide significant cost savings for both you and your employees by putting the employees in the driver’s seat.
- Healthcare Reimbursement Arrangements
An excellent midway point between fully insured and partial self funding. The employer assumes less risk, but for lower potential savings.
- Defined Contribution Plans
More and more employers are encouraging the efficient use of health care by offering Defined Contribution medical plan arrangements. By fixing employer contributions at a certain level, rather than promising a specific benefit regardless of cost, employers stabilize their operational cash flow while continuing to offer a valuable benefit to employees. Employees use that money to buy or help pay for a health insurance plan they select for themselves.
How your plans are funded can make all the difference when it comes down to the final costs of your benefits package. Fully-insured plans are still simple to work with and somewhat flexible, but self-funding is making more sense for businesses of all sizes.
What Are The Differences Between Funding Methods?
- Fully Insured
A fully insured medical insurance plan is one where the employer provides benefits to his/her employees by purchasing health insurance coverage from an insurance company. In exchange for premium payments, the insurance company bears the full risk for the cost of the benefits provided. . If claims paid for the year are less than premium paid for the same year, the insurance carrier keeps the difference. If, on the other hand, claims are greater than the premiums paid for the year, the insurance carrier absorbs all losses.
A self-funded plan is one in which the employer group assumes the financial risk for providing health care benefits to its employees. The group, not the carrier, is responsible for the claims. With a self-funded plan, the employer pays for claims as they are presented. The plan is administered by a Third Party Administrator (TPA) or by an insurance carrier functioning in an Administrative Services Only (ASO) capacity.