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