28 Aug Lowering Company Health Insurance Costs with a PEO
Employees care as much about benefits and affordable options as they do their regular compensation. 80% of employees would prefer new or additional benefits to a pay increase, especially those who have a partner/spouse and/or children in their household.
These numbers and research only add pressure to business owners who are finding the cost of maintaining quality benefits difficult. For example, employer-sponsored healthcare benefits can end up costing the employer upwards of $15,000 per employee. Most companies are only able to evaluate their benefit package offerings on an annual basis, reinforcing the difficulty behind making these types of decisions for the entire employee base.
There are ways, however, to reduce the cost of the number one benefit: Healthcare.
First, most companies, regardless of size, when looking to lower benefit-related costs, will partner with a professional employer organization (PEO). PEOs have better access to the health insurance options and carriers that you and your employees want. In this partnership the business (you) will come away with all the perks, including not having to manage the business/carrier relationship, not carrying the burden of searching for new plans each year or having to force yourself to understand what changed in each plan and why. This is the job of the PEO.
Regardless of whether you are partnering with a PEO or going it alone, it is important to weigh each carrier’s plan carefully. Stay away from any options that look like your cheap health insurance stand-by. Employees will want to get more bang for their buck, but as the employer, you should be concerned about the quality of care your employees will receive, including the availability of providers and how quickly new patients can be seen.
Employers may also look into adding wellness programs, or health insurance alternatives, as part of their ancillary or voluntary benefit offerings. These programs include emotional, social, and financial wellness and help keep employees on track and healthy in addition to physical health. These programs can include telehealth benefits which allow employees to receive medical care 24/7 without traveling to the doctor’s office. Whether you are at home, at work, or traveling, employees can visit with a doctor by logging into an app, going online, or calling the service directly.
Whatever your decision, when it comes to employee benefits and health insurance, the challenge of keeping costs low will be a constant. Researchers anticipate these costs will only continue to rise. But that shouldn’t deter you or your team of HR professionals from continuing to put your employees first, keeping their happiness and health top of mind. What you can be absolutely sure of is that a healthy workplace means increased productivity, reduced employee sick time, increased morale, and less employee turnover. Contact Vensure to learn more about how we can keep your costs low, provide new and better benefit options, and help keep your employees happy.