5 Money-Saving Employee Benefit Tips

Posted by on Apr 22, 2016 in company benefits | 0 comments

Money saving

Offering employee benefits is invaluable for encouraging them to stay on board, but increasing expenses makes this difficult for small-business proprietors. Listed below are five tips which can help employers minimize costs while providing employee benefits.

 

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

This strategy minimizes costs by encouraging the employee to consider their own costs. HSAs enable people with high-deductible health plans to use employee tax funds to afford uncovered health care costs and roll unused funds over to the next year. You could make your employees pay for the plan or fund it on your own.

HRAs (health reimbursement accounts) may also be combined with high-deductible health plans. With an HRA, employers reserve funds to reimburse a fixed amount to employees for deductibles or eligible out-of-pocket medical costs. Employees can then carry unused funds over to the next year, although the money is officially owed to the employer.

 

2. Buying Cooperatives

Small companies may increase their bargaining leverage with insurance providers by joining forces in health insurance buying cooperatives. Every cooperative is organized in its own way, and whether or not it provides better insurance rates than companies might get in the open market usually depends on regional insurance underwriting regulations.

For instance, a New York City business cooperative presents members with 35 health plans to choose from. Despite the fact that the insurance by itself has no discount, members get special perks, like free health insurance assessments and dental benefits they normally would not qualify for or might need to spend a lot for by themselves.

3. Company Wellness Plans

Wellness initiatives vary widely in their employee benefits, from cost-free gym memberships to supplying wholesome food on lunch breaks and health tests that usually result in reduced insurance costs for employees.

These plans may help reduce employer insurance costs by fostering greater health consciousness among staff members, thereby encouraging them to pay more attention to their own personal health. An expanding batch of plans are also accessible online. For example, these plans might provide personalized nutrition guidance, meal-planning resources and exercise routines, and they cost only a couple of dollars per staff member each month.

 

4. Disease Control

Disease control seeks to lessen the symptoms of chronic diseases like diabetes or asthma by means of tests and preventive care. A single employee’s prolonged hospital stay or serious health problem is often a major economic burden for smaller companies with limited budgets. To circumvent these kinds of costs, a number of smaller businesses are implementing disease management plans staffed with healthcare professionals who work together with employees to more efficiently control and treat their chronic diseases. Several insurers provide these programs, or they may be supplied by a third party.

 

5. Flexible-Spending Accounts

FSAs (flexible-spending accounts) enable employees to afford medical costs that are not included in their health insurance plans with pretax money. Employees may use the customized debit cards that come with these accounts to cover co-pays or medications not included in their insurance plans. The funds are immediately subtracted from the pre-tax money reserved by employees. These cards usually cost a couple dollars per employee each month, but several FSA suppliers bundle them into their plans.