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