Employees all over America are worrying about the raising costs of their Group Health Insurance. There is a concern happing due to lack of educations being provided by employers and brokers on the topic of group health insurance. This ultimately leads confused employees to drop their coverage and loose value of the company benefits being provided. As a consequence, to all this, most employees will loose loyalty and Group Benefits will loose their ability to attract and retain employees. Employee moral could drop and business values risk being lost.
In a survey recently completed by Transamerica Insurance Co., 33 % of Americans are concerns about the rising costs of their Health Benefits. In this article, we will discuss several strategies that can be used to help employees address these concerns.
Group Health Insurance vs. Individual Health Insurance
It is no surprise to see that at times, individual Health Insurance might look more affordable than group health insurance, but a closer look at the two will show that Business Health benefits found in company’s business benefits are more appealing. First of all, group health premiums are much lower in costs once calculating employer contribution as well as pre tax premiums contribution premiums offered by Section 125 Plans. This means not only employees will have a larger discount on their benefit premiums versus individual insurance, but premiums which are covered 100% by the individuals can potentially be a tax saving toll enjoyed only by employees.
Recently due to the high costs, programs like Obama care have worked on helped supplement some of the fees of these high costs, unfortunately not everyone qualifies for these government sponsored plans. For more details regarding these benefit discounts, please speak to your insurance agents or contact us. The second aspect that needs to mentioned is that larger companies that have more that 100 employees have capabilities to compound premiums so that each employee will pay the same premium regardless the age. This means that employees that are older will be able to purchase group health insurance at a cost that is not available anywhere else.
How to Address These Concerns of Employee Benefits?
Education is the answer to solve these concerns. Looking for ways to communicate with your employees is the number one way to address these concerns and help your employees to understand how beneficial your business benefits are. By helping your employees understand their group health benefits, a deeper appreciation for your organization will be formed and more loyal employee will grow from this process. Keep costs low by offering quarterly in-house benefits seminars reviewing retirement planning, and health benefits specifications. Look for upcoming articles which will provide you with creative way to reach your employees.