There are a few basic ways the design of your health plan can help save the company and its employees money. One important strategy that is seldom taken advantage of, is the option to offer two very distinct health plan choices - a benefit-rich plan, and a higher deductible plan or a larger doctor network with a smaller doctor network. Employees who have few medical concerns, and want to pay the least possible amount for their portion of the expense, may prefer a less rich plan, while the employees who have more demanding medical needs in their family will not have to settle for a plan that is not quite sufficient.
One important factor in this strategy is the employer contribution. If you are offering the minimal contribution (50% individual/35% family) or perhaps up to 65 or 70%, your employees will have an incentive to save money, as they are taking on a good portion of the financial burden. If you are very generous, and offer 80 or 100% contribution, you may want to use a different strategy, or create an incentive for the employees to take a less rich plan.
That will be next week's tip!
Feel free to call for advice: 508-429-2270.
