| You can provide affordable health care plans to your | | | | a hospitalization rider provides considerable protection. |
| employees. If you feel overwhelmed by health care | | | | If plans offer any reimbursement for preventive testing, |
| plan costs, you may be able to achieve far more than | | | | employees may recoup some of their premiums.The |
| you believe. Here is how.REAL NEEDS, REAL | | | | most popular insurance products are disability and |
| SOLUTIONSToday, millions of EMPLOYED Americans | | | | accident 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. Until | | | | many employers are surprised by how popular these |
| an extended illness or hospitalization occurs, these | | | | plans prove to be.Cancer and critical illness plans are |
| resources usually suffice.When faced with | | | | also popular. Employees may not want to pre-tax |
| catastrophic health expenses, people often turn to their | | | | disability, cancer, or critical illness since benefits would |
| employers. If your company provides insufficient | | | | be 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 passed | | | | and co-pays in major medical plans at reduced |
| bankruptcy legislation that burdens millions of | | | | costs.SPENDING ACCOUNTSThe several types of |
| Americans in medically-induced financial | | | | spending accounts are usually handled through |
| crises.Employers feel the pinch too. With every health | | | | third-party administrators. Because employees don't |
| insurance quote, numbers add up quickly: $150-250 per | | | | pay premiums, spending accounts are even more |
| employee, $300-500 per family. Many businesses shift | | | | popular with some employers than insurance products. |
| these costs to employees through higher deductibles | | | | The neat thing about spending accounts is that they |
| and co-pays, partial premium payments, and other | | | | are 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 the | | | | unreimbursed 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 major | | | | items not covered by typical (or low-cost) major |
| medical and dental plans. A supplemental benefits | | | | medical plans: crutches, hearing aids, etc.Unfortunately, |
| broker brings you proven cost-reducing | | | | employers must pay small administrative fees for |
| advantages.The best supplemental benefits providers | | | | Flexible Spending Accounts. While they may recoup |
| don't require employers to pay premiums. The | | | | their 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-tax | | | | contributions. Evaluate each FSA plan carefully to find |
| options can make them extremely attractive and | | | | the best match. With FSA plans, employees must |
| affordable. Be sure you find a competitive provider | | | | budget carefully because they lose unspent funds at |
| with truly low-cost products to maximize savings and | | | | the end of the year.Dependent Child Care Accounts |
| benefits.Most insurance brokers do NOT handle | | | | are also popular. Some providers take a portion of |
| supplemental benefits. When a supplemental benefits | | | | reduced F.I.C.A. contributions as their fee. I.R.S. rules limit |
| broker contacts you, assume your regular broker | | | | dependent 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 ways | | | | NOT claim these expenses on their tax returns AND |
| to give your employees options and flexibility to care | | | | their deductions become post-tax deductions after |
| for their families. You cannot do it all, but they have | | | | they have matched the current limit.A new type of |
| to.Good brokers schedule employee meetings to | | | | spending account is an HSA, or Health Savings |
| explain plans in detail. You should insist on a group | | | | Account. Unlike Flexible Spending Accounts, HSAs |
| meeting.Plans fall into two categories: insurance and | | | | allow you to roll the unspent funds in the account over |
| spending accounts. I'll describe them briefly, but you | | | | to the next plan year. So, what's the catch?HSAs |
| need to sit down with a knowledgeable broker to fully | | | | must be used in conjunction with High Deductible |
| understand these programs.SUPPLEMENTAL | | | | Health Plans. An HDHP costs less than typical major |
| INSURANCEEmployers are usually asked to payroll | | | | medical, but your deductible must meet a minimum |
| deduct insurance premiums. Therefore, most voluntary | | | | requirement ($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 are | | | | everyone. The U.S. Department of the Treasury has |
| reduced, employers who match contributions may | | | | published a Web site with information on HSAs: with a |
| save money, too.Section 125 of the I.R.S. code defines | | | | supplemental 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 Cafeteria | | | | reduce 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 to | | | | effective, proven programs.Michael Martinez is a |
| guarantee premiums, competitive providers will NOT | | | | licensed Life and Health insurance agent in the state of |
| ask for employer contributions. Seek inexpensive | | | | Texas. 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 $15-25 | | | | state. This article does not offer legal, tax, or financial |
| per month: a dollar a day per employee. Family | | | | advice. Consult a licensed supplemental benefits broker |
| coverages and riders incur additional costs, so be | | | | in your area to understand what choices you have |
| informed.Riders extend policy benefits. For example, an | | | | available to you. |
| accident plan with a disability rider, a wellness rider, and | | | | |