There are several reasons that employers bring in Employee Benefits into the company, for the “benefit” of the employees. Attract and retain employees is the overall answer, but it goes much deeper.
Networks are much different in Group Health Plans vs. Personal Plans you purchase online
The biggest disruption in the Health Insurance industry has been the carving up of networks. The smaller the network, the cheaper the health insurance plan…usually. Group Health Plans usually have a much broader network with the offered plans. That means that your employees can have their in-network doctors in some of the major medical groups….Stanford, UCSF, Sutter, etc…
Employees can pay for their portion with #PreTax money
When you offer Employee Benefits and Group Health Insurance, employers can set up an IRS Section 125 plan that allows employees to pay for any of THEIR premium costs non-taxable. That also helps employers by lowering their payroll numbers and FICA payments to the government.
Employees pay less for their Group Health Insurance
When an employer “sponsors” an Employee Benefits, Group Health Plan, they have to contribute to that plan, a minimum of 50% of the employee’s premium. No employee has ever complained about that.
Group Health Insurance has WAY more choices than Individual-Family plans
There are hundreds of Group Health Plans on the market, available to employer groups. There are maybe 25 plans or so, available on the internet for individuals and families. The cost is almost the same between Employee Benefit plans and the ones on the internet. The plans are not exactly the same, so its not exactly an “apples to apples” comparison, and remember, the networks are super small with the internet plans.
Brokers play a key role with Group Benefits, when it comes to an employee having a claim
Anyone that has ever had a significant medical issue know what I’m talking about. When you go to use the internet ObamaCare plan, and you have a claim, get ready. You will probably get a bunch of confusing, expensive, and most times incorrect bills from doctors, hospitals, etc. With the internet plans, it’s up to YOU to figure it out. Good luck getting an help from anyone at the insurance company. With Group Health Plans, the employer has a broker attached to the account. The Group Benefits broker’s job is to make sure everyone’s happy and there are not issues with claims. Well….the good ones take care of the claims. Hey…we earn 5% each month, we better be doing something for that money. Sadly, many brokers are only around during Open Enrollment, and to collect their commission each month. That’s why brokers that specialize in Employee Benefits are so needed. Specialists know how to resolve #EmployeeBenefit issues with the least amount of hassle for the employer and the employees.
Brauer Insurance is one of the leading Employee Benefits only agencies in the Bay Area. Have questions? Email us…no strings, and I won’t hound or stalk you. Promise.
Steve Brauer-Principal, Brauer Insurance Services, www.brauerinsurance.com (877) 421-4325