A Guide to
LOVABLE EMPLOYEE
HEALTH BENEFITS
Create Affordable
Health Benefits
Employees Will Love
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 2
The #1 Online Small Business Health Benefits Solution
Successfully transition ...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 3
A GUIDE TO LOVABLE
EMPLOYEE HEALTH BENEFITS
Create affordable health benefits ...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 4
About this Guide
Offering health benefits through a defined contribution
appro...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 5
1) Controllable Costs
Being able to set, control, and predict all health benef...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 6
How Defined Contribution Health Benefits Work
It’s a simple and effective appr...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 7
“61% of employees
report that being able
to customize benefits
would increase ...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 8
Coverage for All Employees
Starting October 1, 2013 all employees (regardless ...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 9
3) Painless Administration
Every small business owner or HR manager wants to s...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 10
Next Steps
For a business transitioning to defined contribution health benefi...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 11
ADDITIONAL HEALTH BENEFITS RESOURCES
View our full library of health benefits...
AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 12
The #1 Online Small Business Health Benefits Solution
Successfully transition...
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A Guide to Lovable Employee Health Benefits
For businesses to thrive in today’s economy, finding and retaining the best employees is top priority.
However, the landscape of small business health insurance is changing and the cost of group health insurance is no longer sustainable. Businesses need new ways to offer the same or better health benefits at a controllable cost.
Because of this, businesses are transitioning to defined contribution health benefits.
Small Business Owners, CEOs, and Human Resources Managers should download this guide to learn how defined contribution health benefits reduce the cost and time associated with traditional health insurance, while maintaining all of the benefits employees love.
•How to design affordable health benefits that employees love
•The top 3 reason businesses are transitioning to defined contribution
•How defined contribution compares to group health insurance
•Strategic ways to free up more time for meaningful work

Bill Peterson/Owner Health Benefit Solutions Since 1993 Zane Benefits Consultant Contact: Local:704-847-3314 Toll Free: 1-888-881-9272 E-Mail: billpeterson36@gmail.com Website: www.lowestcosthealthplans.com

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Zane benefits -_create_lovable_employee_health_benefits_e_book

  1. 1. A Guide to LOVABLE EMPLOYEE HEALTH BENEFITS Create Affordable Health Benefits Employees Will Love
  2. 2. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 2 The #1 Online Small Business Health Benefits Solution Successfully transition to a health benefits solution that creates happier employees, reduces costs, and frees up time for meaningful work. Request a Demo. Health Benefit Solutions Since 1993 Matthews N.C. A Zane Benefits Consultant for the Carolinas Bill Peterson/Owner Local: 704-847-3314 Toll Free: 1-888-881-9272 E-Mail Me: billpeterson36@gmail.com Website: www.lowestcosthealthplans.com DISCLAIMER The information provided herein by Zane Benefits is general in nature and should not be relied on for commercial decisions without conducting independent review and analysis and discussing alternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulations differ in each state; information provided does not apply to any specific U.S. state except where noted. See a licensed agent for detailed information on your state. www.zanebenefits.com. Happier Employees With Zane’s solution, employees choose the health plan that best fits their families' needs. Learn more. Controllable Costs Employers fix their costs by utilizing a defined contribution approach. Learn more. More Time for Meaningful Work Once implemented, Zane’s solution takes less than 5 minutes per month to administer online. Learn more. Easy Transition Zane Benefits’ implementation team will ensure a smooth and fast transition for you and your employees. Learn more.
  3. 3. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 3 A GUIDE TO LOVABLE EMPLOYEE HEALTH BENEFITS Create affordable health benefits employees will love Introduction For businesses to thrive in today’s economy, finding and retaining the best employees is top priority. This is especially true for small businesses competing with larger businesses, and larger budgets, for top talent. Additionally, the landscape of employee health insurance is rapidly changing. Businesses need new ways to offer the same (or better) health benefits at a controllable cost. Happy Employees Help Your Business Thrive Frequent voluntary turnover has a negative impact on employee morale, productivity, and company performance. Recruiting and training a new employee requires staff time and money. Every time a business replaces a salaried employee, it costs 6 to 9 months’ salary on average. For a manager making $40,000 a year, that's $20,000 to $30,000 in recruiting and training expenses. On the flip-side, retaining employees who are committed, loyal, and embody the business’s mission are what gives your business its competitive edge. While some turnover is inevitable, a strategic employee recruiting and retention strategy mitigates the turnover and associated costs for a small business. Employee health benefits are a key part of the compensation offered to employees, and therefore vital to employee recruitment and retention programs. The New Way of Offering Health Insurance Businesses are transitioning to defined contribution health benefits because it offers predictable costs to the business, while providing employees access to quality health insurance. Defined contribution health benefits reduce the cost and time associated with traditional health insurance, while maintaining all of the benefits employees love.
  4. 4. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 4 About this Guide Offering health benefits through a defined contribution approach allows your business to provide health benefits that employees love, while staying within your business’s health insurance budget. Small and medium-sized businesses are transitioning to defined contribution health benefits because of: 1) Controllable costs / pg. 5 2) Happier employees / pg. 7 3) Painless administration / pg. 9 This guide provides an overview of these three benefits. Contact: Health Benefit Solutions Since 1993 Matthews N.C. 28105 A Zane Benefits Consultant Bill Peterson/Owner Local: 704-847-3314 Toll Free: 1- 888-881-9272 Fax: 1-888-881-9884 E-Mail Me: billpeterson36@gmail.com Website: www.lowestcosthealthplans.com
  5. 5. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 5 1) Controllable Costs Being able to set, control, and predict all health benefits costs is revolutionary for many businesses. Defined contribution health plans give your business controllable costs by offering the following features:  Define your budget by setting any contribution amount to employees’ health care.  Give employees tax-free monthly health care allowances (via an IRS-approved Medical Reimbursement Plan).  Employees purchase individual health insurance policies (or incur an eligible medical expenses) and submit expenses for reimbursement. The business reimburses employees on payroll tax-free.  The business only reimburses employees for eligible premiums and expenses, up to the amount of their health care allowance.  At the end of the year, the business decides what happens to employees’ unused allowances (i.e. do they carry-over to the next year). Without annual renewal increases or minimum contribution amounts, the business is free to control all benefit costs. Compared to Group Health Insurance … Average Employer Cost For One Year of Group Health Insurance* Single Employee: $5,615 Up 255% since 1999 Family: $15,745 Up 272% since 1999 *Source: Kaiser Family Foundation, 2012 In the past, group health insurance was the best way to provide quality health insurance to employees. Today, group health insurance is a source of frustration to declining benefits and increased costs. Businesses need the same quality of coverage, but with controllable cost and sustainable administrative effort.
  6. 6. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 6 How Defined Contribution Health Benefits Work It’s a simple and effective approach, But a significant change in how companies offer health insurance… Set any amount to contribute to employee's health care Give employees tax-free health care allowances via an HRA Reimburse employees on payroll for approved premiums and expenses Business liability is controllable & Employees shop for policies that BEST meet their needs
  7. 7. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 7 “61% of employees report that being able to customize benefits would increase their loyalty.” ~ MetLife 2013 Study of EmployeeBenefit Trends benefittrends.metlife.com 2) Happier Employees In order for a health benefits program to work, it has to meet the business’s budget and provide value to employees. The following aspects of defined contribution health benefits contribute to happier employees. Access to the Best Health Care Because employees choose how to spend their health care allowance, including which individual health insurance policy to purchase, they can pick the health coverage that best meets their needs. Employees say they no longer want a one-size fits all health insurance plan. Rather, they want the options to customize their health benefits. With defined contribution plans, employees select:  Any type of plan, from any insurance carrier.  The network of providers and doctors they want to see. Coverage to fit their health needs (maternity coverage, prescription, HSA-plan, etc.).  The level of deductible, co-pays, co-insurance, etc. Tip: Because some employees may not be comfortable selecting an individual health insurance policy on their own, you may want to designate an insurance professional to help employees select individual policies. This also shows employees you care about them and want to improve their health benefits.
  8. 8. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 8 Coverage for All Employees Starting October 1, 2013 all employees (regardless of health conditions) will be able to purchase an individual health insurance plan (effective January 1st , 2014) that is equal or better for them than existing group health insurance options. Access to Health Insurance Subsidies Starting in October 2013, employees can use their health care allowance to purchase policies from the new health insurance marketplaces. This gives them access to federal health insurance tax subsidies (starting in 2014) to lower the cost of their premium. Eligibility for the tax subsidies is based on income and household size. Households with income up to 400% above the federal poverty line (FPL) will be eligible (up to $45,960 for an individual in 2013, or $94,200 for a family of four in 2013). Tip: Employees will only be eligible for the tax subsidies if the business chooses not offer group health insurance. Read more on the individual health insurance subsidies here. Predictable Costs for Employees Employees have a clear budget to spend on health insurance. Individual plans are, on average, 30% cheaper than the same group coverage. And if an employee doesn’t spend their full allowance on health insurance, they could use it on co-pays, prescriptions, etc. (as the employer’s plan allows). Easy to Use Lastly, employees value health benefits that are easy to understand, and easy to use. Similar to the transition from pensions to 401(k) retirement plans, the defined contribution health benefits approach requires employees to take more control of their health benefits. Defined contribution administration software provides employees easy access through an online portal where they can see benefit information and submit requests for reimbursement (“claims”).
  9. 9. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 9 3) Painless Administration Every small business owner or HR manager wants to spend more time on strategic issues, and less time renewing health insurance plans. With defined contribution health benefits, administration becomes a payroll function. Once set up, it takes 5-10 minutes a month. Once the plan is set up, the business’s administrative activities include:  Adding approved reimbursements to payroll.  Enrolling new employees online.  Terminating employees from the plan when they leave the company.  Providing education to employees about the benefit.  Connecting employees with an insurance agent for insurance questions. Tip: Defined contribution health benefits software is key to managing these administrative aspects in a painless, compliant, and efficient way. * Source: Talent Management Magazine, “Make HR Happy.” http://talentmgt.com/articles/view/make_hr_happy. July 12, 2013. Most HR Managers spend less than 10% of their time at the strategic level. Rather, 50-65% is spent processing HR transactions. Heavy transactional workloads make recruiting and retaining top managerial talent increasingly difficult.*
  10. 10. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 10 Next Steps For a business transitioning to defined contribution health benefits, or for a business using defined contribution to offer health benefits for the first time, here are the next steps:  Set a date to cancel your group health insurance plan (if you have one).  Define any amount you can afford for health benefits.  Use a Defined Contribution Software provider to: o give each employee a fixed dollar amount to use on premiums and/or medical expenses, o develop a customized transition and on-boarding plan, and o educate employees on their new plan.  Select any insurance professional to give employees a resource in selecting the best plan. Conclusion We hope this guide has given your business the foundation for creating health benefits that employees love. Because of the unsustainable costs of group health insurance, and the new individual health insurance opportunities with health care reform, educated businesses are transitioning to defined contribution health benefits to give employees access to equal or better health insurance, at a controllable cost, with less administrative time. The Result? EmployeesLove Their Health Benefits Again!
  11. 11. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 11 ADDITIONAL HEALTH BENEFITS RESOURCES View our full library of health benefits tools, on-demand webinars, and eBooks at: www.zanebenefits.com/health-benefits-resources
  12. 12. AGUIDE TO LOVABLEEMPLOYEE HEALTH BENEFITS 12 The #1 Online Small Business Health Benefits Solution Successfully transition to a health benefits solution that creates happier employees, reduces costs, and frees up time for meaningful work. Request a Demo. DISCLAIMER The information provided herein by Zane Benefits is general in nature and should not be relied on for commercial decisions without conducting independent review and analysis and discussing alternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulations differ in each state; information provided does not apply to any specific U.S. state except where noted. See a licensed agent for detailed information on your state. www.zanebenefits.com. Contact: Health Benefit Solutions Since 1993 Matthews N.C. 28105 A Zane Benefits Consultant Bill Peterson/Owner Local: 704-847-3314 Toll Free: 1-888-881-9272 Fax: 1-888-881-9884 E-Mail Me: billpeterson36@gmail.com Website: www.lowestcosthealthplans.com Happier Employees With Zane’s solution, employees choose the health plan that best fits their families' needs. Learn more. Controllable Costs Employers fix their costs by utilizing a defined contribution approach. Learn more. More Time for Meaningful Work Once implemented, Zane’s solution takes less than 5 minutes per month to administer online. Learn more. Easy Transition Zane Benefits’ implementation team will ensure a smooth and fast transition for you and your employees. Learn more.

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