To prevent employees from becoming another statistic in the Great Resignation, companies may want to revisit the health benefits they offer. Some small business owners are embracing a perk once rarely found outside of the U.S. military–no-cost health insurance.
The average U.S. worker pays $1,299 towards an individual premium or $5,969 towards a family premium each year, according to a 2021 survey from the Kaiser Family Health Foundation. With job openings still hovering near all-time highs and the unemployment rate stuck at 3.6 percent, founders are finding one of the best ways to attract and retain talent is to bring that out-of-pocket number down to zero. Nearly half of the 475 companies on Inc.’s 2022 Best Workplaces list now offer entirely employer-paid health insurance. And 90 percent of employers rank health as the benefit their workforce values the most, according to the Society for Human Resource Management Benefits Survey.
At the enterprise software company Bluestaq, one of Inc.’s 2022 Best Workplaces, employees do not open their wallets for health care for themselves or anyone in their immediate family. The defense technology contractor completely covers health, dental, and vision insurance for its 63 employees as well as their spouses, partners, and children. That generosity is rare and puts Bluestaq among only 4 percent of companies nationwide that fully cover family premiums. It does not come cheap, however. Last year, the Colorado Springs, Colorado-based company paid out nearly $1 million in premiums. Still, CEO Seth Harvey sees the line item as one of the business’s most meaningful investments and a powerful recruiting tool.
“It’s something we are starting to become known for in our community,” Harvey says, adding that nearly everyone who applies to Bluestaq mentions the company’s no-cost health care.
Almost all employees opt into the health care plan in some capacity, but any Bluestaqers who want to pass receive half of the cost of the monthly premium back into their paycheck. With a blue-chip plan, the cash payout can be pretty significant, Harvey says.
“One of the best things I think we ever did was establish this as a benefit from the very beginning,” said Harvey, who co-founded Bluestaq in 2018 and built the higher health care costs into his budget and contract rates from the onset. “It’s hard to change your benefits down the road.”
While it may be hard, it’s not impossible, as many of the Inc. 2022 Best Workplaces offering no-cost health care made the change in the last year. For New York-based Bizzabo, also an Inc. Best Workplaces honoree, the decision started with an employee survey. The event technology platform was founded back in 2011, and after more than a decade in business, its workforce had matured along with the company. The 383 employees included more families and children, which made health care an even bigger priority. In 2021, Bizzabo invested in its employer contribution for health, dental, and vision insurance. The overhaul ensured that 85 percent of employees, including those covering children, pay nothing for health coverage.
When Tami Golan, the chief people officer at Bizzabo, speaks with both employees and job candidates, conversations around medical benefits come up much more often today compared to two years ago. “People are interested in benefits,” said Golan. “They’re very specific and very intentional in what kind of benefits they’re looking for.”
Bizzabo’s enhanced coverage prompted positive feedback from current employees and helped attract new ones over the last year as the company went through a period of growth, Golan said.
Osano, a data-privacy platform that helps websites comply with the alphabet soup of privacy laws, used to cover 80 percent of its employees’ premiums. In 2021, the company, another Best Workplaces honoree, bumped its contribution up to 100 for employees and 50 percent for dependents, joining just 12 percent of U.S. employers to do so, according to Kaiser. The company also offers its fully remote workforce a monthly stipend for dependent benefits and expanded its parental leave policy to include cases of miscarriage or stillbirth. The goal: to make Osano’s plan so comprehensive that its 39 employees would never need to worry about health-care costs.
Founding CEO Arlo Gilbert has been building startups for more than two decades and said the benefits package that Osano offers has become table stakes in today’s labor market.
, top-notch benefits have allowed Osano to keep that part of the conversation short and focus more on job skills and cultural fits.
For any business owners thinking about making the switch, Gilbert says the return on investment is clear even in the short term.
“It pays itself back very quickly,” he said. “The math works out very well. Your employees are not spending their time thinking about health care. Instead, they are consuming the health care that they need and want, and then they’re back at the office.”
Group Health Insurance for Small Businesses
Group health insurance is a type of coverage that can be purchased by a group of people. It is also sometimes called “group medical coverage.” This type of insurance usually provides benefits to all the members of the group, and it may also cover dependents. Group health insurance may be sponsored by an employer or trade union, or it may be purchased individually. The cost of group health insurance will vary depending on the size and age of the group and on how comprehensive the coverage is. Some employers offer this benefit as part of their benefits package to their employees.
Having good health insurance is a big plus for most employers. It can make them the employer of choice, which makes it easier to attract and retain quality employees. Plus, offering health insurance is tax-deductible. In an effort to attract and retain the best employees, employers must offer the right group health plans. According to research, people look for perks like health benefits when choosing a career. In Arizona, employers should choose a plan that suits the needs of their employees and keeps premiums low. A qualified health insurance broker in Surprise, AZ can help reduce small business health insurance premiums. The type of plan your business offers depends on several factors, including the size of your business, the number of employees, and the number of hours you expect your staff to work.
Choose the right healthcare and employee benefits package for your team today!
One of the best ways to attract and retain top talent is to offer competitive healthcare and employee benefits packages. This will not only attract new talent but also keep your current employees satisfied. In addition to attracting the top talent, employee benefits are important in retaining the best employees. In fact, health benefits are considered the most important employee benefits package. Here are a few ways to make your employee benefits package stand out and increase your retention rate:
- Increase your matching contribution. This will help promote employee loyalty and reduce attrition.
- Offer additional benefits to top performers, such as additional vacation days or flexible working hours.
- Offer activities for employees to participate in, such as health fairs or wellness programs.
- Offer a retirement plan, such as a 401(k) or traditional pension plan, to give your employees a way to plan for their future.
- Provide benefits that promote employee health and well-being. This includes providing healthy snacks, medical screenings, and wellness programs.
Medical, dental, and vision insurance
As an employer in Arizona, you have a legal obligation to provide medical, dental, and vision insurance to your employees. In order to be eligible for these benefits, you must be an active employee. An active employee is an employee who is regularly scheduled to work at least thirty hours per week. If you are a temporary employee, you are not required to provide group health insurance benefits. This coverage takes effect on the first day of the month following hire.
While selecting a medical plan, keep in mind that you must remain compliant with the Affordable Care Act. This government-issued law sets minimum standards and requirements for the insurance industry. If you can meet the minimum standards, you can even receive an annual tax credit for providing this type of insurance to your employees. The following are some tips on how to choose the right plan for your business. You can start by considering the type of medical benefits you want to provide.
Cash balance plans
Cash balance plans are a unique type of employee benefit plan that offers more flexibility than traditional pensions. With high contribution limits and flexible payout options, these plans have become a popular choice among high-income workers. Read on to learn about the benefits of cash balance plans for your employees and find out how to set one up in your business. We’ll also discuss the benefits of cash balance plans for employers and employees in Arizona.
The first major advantage of cash balance plans is their simplicity. Employees can understand them easily, and cash balance plans reduce the administration burden for employers. Cash balance plans are easy to implement and understand and are less complex than profit-sharing or 401(k) plans. Cash balance plans also allow you to reduce your employee’s tax bills. To understand the benefits and drawbacks of cash balance plans, learn more about these plans.
Deferred compensation plans
There are two types of deferred compensation plans: qualified and nonqualified. Although they are similar, qualified plans have a higher tax advantage, while non-qualified plans do not. Employers may opt to offer one type of plan rather than the other. This may be the better option in some situations, but it should be considered carefully before implementing one. Listed below are some of the reasons why employers should consider offering deferred compensation plans to their employees.
Qualified plans are those covered by the Employee Retirement Income Security Act. These plans allow employees to defer their tax liability until the deferred period has ended. Non-qualified plans, on the other hand, allow employers to defer the employee’s contributions to them until they reach a certain age. These plans also offer no limits on contributions, which is beneficial to employees who are paid well.
Low-cost Health Insurance
The Small Business Health Options Program, or SHOP, allows small employers to offer health plans to their employees that don’t meet state requirements. This law was designed to give small businesses a lower-cost health insurance product, but it was later dropped because fewer businesses chose to offer it. While it does allow small businesses to join forces and purchase health insurance, the savings are only three to five percent.
The employer-sponsored coverage must be more affordable than 9.61% of an employee’s household income. If an employee only pays that amount, it may not qualify as low-cost coverage. It must also meet minimum value standards, such as covering 60% of medical costs for a standard population. The employer coverage tool can help determine whether or not an employee’s premium costs are affordable. Ultimately, the savings come down to the cost of medical care.
A comprehensive group health plan protects the company and its employees. Employees can make pre-tax payments toward their policy. It can also help protect the business in the event of the death or illness of a key employee. The financial experts at BFS know the needs of Cottonwood businesses, and we can help them find the best options. Our life insurance products will protect your business if an employee were to die unexpectedly.
While it can be challenging for small employers to offer low-cost health insurance, the U.S. Small Business Administration estimates that approximately 1 million small businesses employ in Arizona. These employers are the largest percentage of private-sector workers in Arizona. In 2015, they added 39,570 jobs, with the biggest gains occurring among firms with fewer than 20 employees. The total number of jobs in the small business industry grew by 22.4 percent.
Small employers should look into the Humana HDHP. It features a comprehensive network, flexible premiums, and HSA eligibility. HSA-eligible plans also allow employees to make contributions to their own health care funds before taxes. Whether you opt for a traditional health insurance plan or an HSA-eligible plan, Humana has an option to fit your business needs. Aetna and Humana also offer high-deductible health plans. These companies are known for their customer service and have tax-favored savings options for small employers.
One of the most common questions regarding employee retention is how to offer the right health benefits to attract and retain employees. The good news is that there are many options for health plan reimbursement and HRA. HRAs have gained popularity in recent years, and offer the same tax benefits as group health insurance. These arrangements allow employers to have control over their health benefits costs while providing a monthly allowance to their employees for qualified medical expenses.
The benchmarking study was conducted by Benefit Commerce Group, an Alera Group company. It covers data from Arizona employers representing over 88,000 employees and $943 million in healthcare dollars spent. This survey is a benchmarking tool developed by the largest actuarial firm in the world and includes data from nearly 20,000 employers nationwide. Benefit Commerce Group also hosts an annual breakfast seminar and provides insights and benchmarking information to employers.
No-cost Health Insurance
Whether you want to attract top talent or retain existing employees, offering the right health benefits to your workforce can help you achieve your business goals. While a company should offer health insurance at affordable rates, it should also ensure that employees are aware of the deductible and co-payment amount, and how these plans affect the cost of health care. The following is a summary of the health insurance costs in Arizona.
Offering group, health insurance is an excellent recruiting and retention tool. A study conducted in 2016 showed that companies with attractive employee benefits are less likely to lose employees. In addition to offering group health insurance, these plans often include dental and vision benefits. Health insurance is a major motivating factor for potential employees to stay in a company. One in six employees in the U.S. stays at a company due to its benefits package, so it is important to consider the right health benefits for your employees.
According to a new survey, retaining employees is easier than ever by offering the right health benefits to your employees. In Arizona, 43 percent of employees are covered by consumer-driven plans, and 51 percent are on traditional copay plans. While the median deductible on traditional copay plans has doubled from $1,500 to $3,000 over the past five years, consumer-driven plans have stayed relatively flat. The cost of employee health insurance in Arizona has remained fairly steady over the past few years, with only a four percent increase in median costs by 2021.
Choose American Insurance Benefits. You deserve the best healthcare coverage from a company that has your back in Surprise, AZ.
In today’s world, traditional health benefits have become a more valuable commodity than a hefty annual salary. Employees are also becoming more aware of the flexibility and benefits offered by such benefits. In addition, rising healthcare costs are making traditional benefits more competitive with annual salaries. Employers typically cover 70% of healthcare costs. By offering supplemental healthcare coverage, employers can attract and retain high-quality workers who are looking for additional flexibility and control over their healthcare.
As it stands, employers are offering more fringe benefits, such as flexible scheduling and telemedicine services. However, these benefits don’t always cover the same costs when compared to traditional health benefits. Flexible scheduling and telemedicine services typically allow employees to see a doctor at a lower cost than traditional health coverage.
You must keep in mind that not all benefits are created equally. In Arizona, you are allowed to define eligibility restrictions, so you must make sure that you are able to offer health insurance to all of your employees. Tired of not having the coverage you need for yourself and your family? Begin your free health insurance quote today by calling (623) 742-3878 and leveraging your small business healthcare in Surprise, AZ!