Sure, you could easily attract and retain a veritable dream team for your company if you could somehow offer the best health care benefits package in your marketplace. But with the rising cost of health insurance, even providing basic coverage can be a stretch for most companies. In order to provide an attractive insurance protection plan for your employees, while still complying with the requirements of health care reform, many employers are considering a beneficial form of coverage known as worksite voluntary benefits. This approach to insurance enables employers to offer their employees affordable coverage, without breaking the company’s budget.
What Are Worksite Benefits?
A worksite benefit option allows your employees to choose the benefits that are best suited to their individual needs. There are several voluntary benefits available, but the employee has the choice of which benefits they wish to purchase. The benefits are funded by the employee, typically by using payroll deduction. This means there is no direct cost incurred by the employer. An added perk is that a plan like this complies with health care reform measures while making employment opportunities at your company highly enticing.
How Is this Beneficial for Employers?
Worksite benefits provide a host of advantages for employers, including:
- The majority of plans reduce the FICA costs for you.
- With access to group rates, your employees can receive coverage that they may not be able to afford outside of your employment, which makes keeping your best employees easy.
- You’ll pay lower payroll taxes when employees choose pre-tax deductions.
- Worksite voluntary benefits are not subjected to the Affordable Care Act mandates, which allow companies round out their total benefits package.
- With healthier employees, you will have less turnover and improved company morale.
What Are the Benefit Plan Options?
Norgard Insurance Group offers a full range of benefit plans, including:
- Accident: Not only does accident protection help your employees be prepared for the unexpected, but employers who offered voluntary accident insurance experienced a decrease in their worker’s comp claims by 34%-55% in the first year the benefits were offered. Embedded benefits may include accident medical expense, hospital stays, and an ambulance benefit. Optional benefits may include coverage for spouses and children as well.
- Critical Illness: This benefit will typically pay the insured a lump sum amount if they experience a critical illness, such as a stroke or heart attack. The payment will allow the beneficiary to use the benefits for various expenses, such as offsetting their loss of income.
- Hospital Indemnity: If the employee is an in-patient at a hospital and they elected the hospital indemnity coverage, it may be used to help offset the expenses.
- Cancer: This worksite benefit provides a cash payment that may be used to help offset expenses incurred for treatments and to help pay for everyday living expenses.
- Disability: The disability plan helps your employees cover lost income and gaps in pay that are the result of a disabling non-occupational illness or accident. As the employer, you choose the level of coverage to offer, and your employees choose where the payments apply. Employers who offered voluntary disability insurance experienced a decrease in workers comp claims by 33%-47% in the first year they were offered.
- Term and Whole Life Insurance: Depending on the type of policy they choose, voluntary worksite life coverage can help your employees take care of their family’s current and future financial obligations.
Employees also have the option to choose supplemental insurance which provides coverage in excess of what their basic plan may offer. For example, pregnancy coverage is available with supplemental as is reimbursement of a specified amount of covered hospital confinement, doctors office visits, and physical exams. Employees can pick and choose which benefit they are interested in according to their specific needs. By offering worksite benefits, employers are sending a message that they believe insurance is an important concern for their financial well-being of their employees.
For more information on worksite benefits for your employees, contact Norgard Insurance Group online or call (813) 454-5072 and our industry experts will be happy to help you with any questions you may have.