Provide Affordable Health Care To Employees At Little To No Cost To You

You can provide affordable health care plans to youra hospitalization rider provides considerable protection.
employees. If you feel overwhelmed by health careIf plans offer any reimbursement for preventive testing,
plan costs, you may be able to achieve far more thanemployees may recoup some of their premiums.The
you believe. Here is how.REAL NEEDS, REALmost popular insurance products are disability and
SOLUTIONSToday, millions of EMPLOYED Americansaccident plans. On average, about 50% of employees
depend on government aid, charitable organizations,participate in them. Averages are not guarantees, but
and their own incomes to pay medical expenses. Untilmany employers are surprised by how popular these
an extended illness or hospitalization occurs, theseplans prove to be.Cancer and critical illness plans are
resources usually suffice.When faced withalso popular. Employees may not want to pre-tax
catastrophic health expenses, people often turn to theirdisability, cancer, or critical illness since benefits would
employers. If your company provides insufficientbe taxable. Some supplemental benefits providers
insurance, will you pay someone who cannot work?have plans to help employees cover high deductibles
To add insult to injury, this year Congress passedand co-pays in major medical plans at reduced
bankruptcy legislation that burdens millions ofcosts.SPENDING ACCOUNTSThe several types of
Americans in medically-induced financialspending accounts are usually handled through
crises.Employers feel the pinch too. With every healththird-party administrators. Because employees don't
insurance quote, numbers add up quickly: $150-250 perpay premiums, spending accounts are even more
employee, $300-500 per family. Many businesses shiftpopular with some employers than insurance products.
these costs to employees through higher deductiblesThe neat thing about spending accounts is that they
and co-pays, partial premium payments, and otherare pre-taxed, so both employer and employee may
means.And despite some television advertising,save money.A Flexible Spending Account (FSA, or
supplemental benefits are not well known in theunreimbursed medical account) is used for co-pays,
workplace. Most providers rarely advertise or not at all.deductibles, over-the-counter expenses, and many
Supplemental health plans are separate from majoritems not covered by typical (or low-cost) major
medical and dental plans. A supplemental benefitsmedical plans: crutches, hearing aids, etc.Unfortunately,
broker brings you proven cost-reducingemployers must pay small administrative fees for
advantages.The best supplemental benefits providersFlexible Spending Accounts. While they may recoup
don't require employers to pay premiums. Thetheir expenses from reduced matching F.I.C.A
employees pay for most benefits. However,contributions, some organizations don't make such
competitively priced plans are inexpensive and pre-taxcontributions. Evaluate each FSA plan carefully to find
options can make them extremely attractive andthe best match. With FSA plans, employees must
affordable. Be sure you find a competitive providerbudget carefully because they lose unspent funds at
with truly low-cost products to maximize savings andthe end of the year.Dependent Child Care Accounts
benefits.Most insurance brokers do NOT handleare also popular. Some providers take a portion of
supplemental benefits. When a supplemental benefitsreduced F.I.C.A. contributions as their fee. I.R.S. rules limit
broker contacts you, assume your regular brokerdependent child care expenses as tax deductions.
knows very little about such products. Ask questions.Employees should understand two things: they will
Make an informed decision. Most importantly, find waysNOT claim these expenses on their tax returns AND
to give your employees options and flexibility to caretheir deductions become post-tax deductions after
for their families. You cannot do it all, but they havethey have matched the current limit.A new type of
to.Good brokers schedule employee meetings tospending account is an HSA, or Health Savings
explain plans in detail. You should insist on a groupAccount. Unlike Flexible Spending Accounts, HSAs
meeting.Plans fall into two categories: insurance andallow you to roll the unspent funds in the account over
spending accounts. I'll describe them briefly, but youto the next plan year. So, what's the catch?HSAs
need to sit down with a knowledgeable broker to fullymust be used in conjunction with High Deductible
understand these programs.SUPPLEMENTALHealth Plans. An HDHP costs less than typical major
INSURANCEEmployers are usually asked to payrollmedical, but your deductible must meet a minimum
deduct insurance premiums. Therefore, most voluntaryrequirement ($1000 individual, $2000 family). And you
plans may be offered as pre-tax deductions.have to exhaust the funds in your HSA before you
Pre-taxing often reduces employee Federal and F.I.C.A.can use your insurance. So, HSAs are not for
withholding. If employee F.I.C.A. contributions areeveryone. The U.S. Department of the Treasury has
reduced, employers who match contributions maypublished a Web site with information on HSAs: with a
save money, too.Section 125 of the I.R.S. code definessupplemental benefits broker to learn more about and
the rules for pre-taxing voluntary benefit deductions.understand how these programs help employers
These plans are often called Section 125 or Cafeteriareduce costs, increase benefits, and assist employees
125 plans. Pre-taxed plans restrict employees'in reducing their own medical expenses through
changes.Although some providers ask employers toeffective, proven programs.Michael Martinez is a
guarantee premiums, competitive providers will NOTlicensed Life and Health insurance agent in the state of
ask for employer contributions. Seek inexpensiveTexas. Insurance and benefits programs may be
insurance plans that incur no direct costs to employers.subject to both Federal and state regulations in your
Accident care plans should cost no more than $15-25state. This article does not offer legal, tax, or financial
per month: a dollar a day per employee. Familyadvice. Consult a licensed supplemental benefits broker
coverages and riders incur additional costs, so bein your area to understand what choices you have
informed.Riders extend policy benefits. For example, anavailable to you.
accident plan with a disability rider, a wellness rider, and