Tag Archive for: employee health benefits

Health Benefits Could Give Employers a Competitive Edge

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Companies face tough competition when it comes to attracting quality employees. According to a leading job placement firm, Manpower Group, 69% of U.S. companies report talent shortages. This is the highest percentage in over a decade. In order to stay competitive, many companies have started offering a wider range of benefits. Although benefits like retirement savings plans and life insurance appeal to many, nothing matters quite as much as health insurance.

Health Insurance Provides Peace of Mind for Employees

As the costs of healthcare rises and employees worry about their health and the health of their loved ones, health insurance benefits become more important to workers. This year, it’s expected that many people that put off routine healthcare in 2020 will visit their doctor. Many more will seek out the COVID-19 vaccine as it becomes available. Employers that do not offer good health insurance benefits will likely find it difficult to attract and retain talented employees in the next few months.

In addition to health insurance benefits for employees, employers should consider offering health benefits to the family members of employees as well. Many workers worry about how they will pay for a major health event and offering health insurance to the spouse and children of employees can provide peace of mind. In fact, this might be the reason a candidate chooses one company over the next.

80% of respondents to a recent survey conducted by the American Institute of Certified Public Accountants reported they would choose a job with benefits over the identical job with 30% more salary but no benefits. This says a lot about what candidates look for when searching for a job. Based on these results, companies that offer an attractive employee benefit package could stand out above their competition, even if they offer a lower salary.

Final Thoughts

Employers have many things to consider in the upcoming months. As businesses attempt to regain their footing and navigate through difficult economic times, they’ll need talented staff to help grow their business. It’s crucial that leaders do all they can to ensure the best candidates don’t pass them by. Offering an attractive benefits package with health insurance benefits for employees and their family members could make all the difference in the world.

MEBO offers employee benefits, custom tailored to the unique needs of employers. We help businesses develop benefit plans that gets them noticed. Please contact us for more information or to schedule a consultation.

 

Employer Insurance Trends for 2021

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The New Year provides a chance for everyone to look towards the future. This has proven especially important this year as many of us wish to leave behind the stress and chaos of 2020. For employers, the New Year represents a chance to evaluate current processes and policies and adjust to meet the changing needs of the company and its employees.

When it comes to employee health insurance benefits, employers could benefit from learning about employer insurance trends for this year.

Health Insurance Rates Rise

According to a survey conducted by Business Group on Health, a non-profit organization dedicated to helping companies optimize business performance through health improvement, innovation, and health care management, large employers expect insurance rates to rise 5.3 percent this year. Although this may seem like a large increase to some, it’s only slightly higher than the 5% increase projected by employers over the past five years.

The 2021 rate increase is due to rising uncertainties surrounding COVID-19 and predicted healthcare needs of Americans throughout the year. Several different factors could impact healthcare costs including COVID-related care, vaccines, and whether or not people will catch up on much needed healthcare they’ve missed throughout the pandemic.

Employers Add New Resources to Employee Health Plans

Despite the economic repercussions of the pandemic, employers seem to understand the importance of providing employee health benefits during these uncertain times. This is different than the recession in 2008, when a high percentage of employers cut back on employee health benefits. It’s not expected that companies will make significant changes to reduce costs in their medical plans this year. In fact, many companies plan to add new resources to their employee health plan.

The survey found that 80% of respondents believe virtual care and telemedicine will play a significant role in how care is delivered in the future. 57% plan to add more virtual care options to their health plan in 2021.

In light of the pandemic and the stress it places on employees, many employers have also begun expanding virtual services to include the delivery of health coaching and emotional well-being support. 91% of respondents stated they plan to offer tele-mental health to employees this year.

Employers Consider New Options for Employee Benefits

As employers navigate tough financial and business decisions in 2021, they may wish to consider other, more cost-effective employee health plans. A popular option, level-funding allows employers to cap the total amount of healthcare spend, while providing employees access to highest quality healthcare. This option provides transparency for employers, allowing them to see exactly where and how they spend their healthcare dollars. Unlike fully insured health plans, employers retain 100% of their savings when claims are lower than expected. This could prove especially beneficial in 2021 as businesses attempt to regain their footing in these tough economic times.

MEBO offers employee benefit packages, custom tailored to the needs and requirements of each organization we work with. Please contact us to learn how we can help you create an employee benefit plan that fits your needs and budget.

 

 

Most Common Employee Benefits

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Employees spend about half of their waking hours working. Great employers understand the strain this can put on their staff. They know that offering perks and benefits not only helps attract new talent, it also keeps employees engaged. This is key to retention.

Research conducted for the Robert Half 2021 Salary Guide discovered the most common benefits companies offer. While a lot of these benefits have been the standard for many years, a few only recently gained popularity among employers.

Employers that wish to retain their employees could benefit from adding the following perks and benefits.

Employee Health Insurance

Robert Half surveyed over 500 North American HR managers. Employee health insurance was the number one benefit offered. According to the survey, 68% of employers currently offer health insurance benefits.

As the pandemic continues to spread throughout much of the country, health benefits will become increasingly important. Employers that do not offer health benefits this year will likely find it difficult to retain their employees.

Paid Time Off

An important benefit, 63% of companies surveyed offer paid time off. While most people think of paid time off as vacation pay, many companies also offer paid time off for illness, bereavement and other personal time off.

Dental Insurance

Poor dental health is associated with serious health problems including heart disease and respiratory infections. Perhaps this is why 59% of companies offer dental insurance to their employees.

Retirement Savings Plan

Offering a retirement savings plan is a great way to encourage employees to save for retirement. Many companies match employee contributions. This can increase employee satisfaction and retention.

Life Insurance

The fifth most common benefit, life insurance and accidental death and dismemberment (AD&D) insurance provide employees with peace of mind. Providing this important benefit lets employees know they’re cared for and supported.

Flexible Work Schedules

An increasing number of employers have started allowing employees to set their own work schedules. Employees may choose to work four longer shifts as opposed to five regular shifts, or split their workday into chunks of time. This “windowed” workday allows employees to balance their personal and professional obligations. 46% of companies surveyed offer flexible work schedules.

Remote Work Options

COVID-19 highlighted the importance of working from home. In fact, many companies have decided to make remote work permanent. When employees work from home, it allows for adequate social distancing and allows employers to reduce the amount of money spent on office space and utilities.

Offering benefits and perks can increase employee satisfaction and retention. If you’re unsure where to start, MEBO can help! We work directly with our clients to analyze their needs and develop a customized benefit plan. Please contact us for more information.

 

 

 

Retain Your Savings with Level Funding

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Integrating a new health plan strategy can reduce the amount of capital a business spends on overall health claims costs. With the high cost of healthcare in Southern California, most organizations agree that any cost-savings is worthwhile. However, many employers find they lose half of these savings to the company managing their health plan. At MEBO, we strive to help employers retain their savings and achieve the greatest benefits from their employee health plan.

By taking a Level-Funded approach to self-funding, organizations get the predictability of a fully-insured health plan and the cost-savings and flexibility of self-funding. Unlike a fully insured plan, employers retain 100% of their savings when claims are lower than expected.

Enjoy Increased Flexibility, Transparency, and Predictability

When selecting an employee health plan, many organizations opt for a Level Funded approach because of the predictability, visibility, and financial protection it offers. Monthly costs of a Level Funded plan include stop-loss insurance premiums, administrative fees, and estimated claims expenses.

With Level Funding, monthly costs are established in advance and employers pay a fixed or “level” amount each month. Employers also receive ongoing claims data. This valuable data makes it possible for employers to see exactly where and how their healthcare dollars get spent.

At the end of each year, if an employer’s estimated health care payments total more than the actual claim costs, the employer receives a refund for the difference.  Alternately, if claim costs exceed the estimated limit, stop-loss insurance covers the additional expense. Level Funding offers transparency and flexibility. Stop-loss insurance limits risk and caps financial exposure.

Flexible Approach

Level Funding is a type of self-funding. This allows employers to tailor the plan to meet the changing needs of their organization. Based on claims reports, employers can quickly locate areas that impact claim costs. They can then adjust their plan as needed. Based on health claim data, employers can also choose to implement strategies like employee education on wellness and preventative care.

Is Level Funding Right for Your Organization?

While Level Funding offers numerous benefits, it might not be the best fit for every business. It’s important that leaders fully analyze their needs and determine how their company will allocate the cost savings.

MEBO has worked with numerous employers to help them locate ways to reduce costs, increase transparency, decrease the frequency and severity of claims, and improve health outcomes for employees. Please contact us for more information about Level Funding, Self-Funding, and Fully Insured health plans. We look forward to hearing from you!