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Employee benefit cost sharing – what are good options?

Balancing costs with benefits – how to pay for employee healthcare

Decades ago, healthcare was relatively inexpensive. Your family doctor took care of most issues and medical technology was nowhere near where it is today. So many employers could afford to pay the lion’s share of healthcare benefit costs. That is not the case any more.

Delivering value at a reasonable cost

Leveraging some level of healthcare coverage is a good way to attract and retain the employees you need for your business to thrive. Your challenge is creating a plan that your business can afford and that your employees see as valuable. Fortunately, there are many plan options available to answer both challenges.

You can choose from higher deductible plans to control costs and still provide coverage. While there is more employee up-front out-of-pocket expense, costs are lower and high-cost illnesses are covered after deductibles are met.

Health Savings Accounts (HSAs) are another strategy you should consider. HSAs allow employees to contribute to a health saving plan each pay period. The contributions to the plan are not subject to federal income tax, so employees save on their taxes. The plan is used to pay for deductibles and other out-of-pocket medical expenses. HSA plans also have insurance that kicks in after deductibles and out-of-pocket maximums are met. Another advantage of HSAs is that items like eyeglasses can be paid for with non-taxed money from the account.

Know all your options

Making health plan decisions is not easy. There are many factors to consider, such as cost, coverage, convenience and availability. Talk with a health care benefits professional to be sure you understand all your options. Then you can deliver employee value at a cost you can afford.