Myth ~ a popular belief or tradition
Magic ~ the power of influence
Mayhem ~ a state of rowdy disorder
The one thing you can always count on in the Medical Insurance industry is it is like the “sand on a beach” …always shifting and changing.
Employee Benefits has dramatically changed over the past 8 years. No longer can you find and keep exceptional employees with “just” medical insurance.
Let’s begin with the “Myths” with Employee Benefits:
Myth #1 ~ Applicants and Employees make their decision to work for you based on salary.
Employers make the mistake of offering minimal benefits. Future and current employees are driven by benefit packages that make their lives better. We recommend using an Employee Survey to rank benefits by importance. Also, compare your benefits with your competitors if possible.
Myth #2 ~ You have to wait until the start of the year to make changes?
When deciding to make improvements or add benefits it is usually better to do so as quickly as possible. You are adding or changing benefits to improve the lives of your employees and yourself. You will reap the benefits of these changes quicker once implemented. Do not “dangle” the carrot of “it’s coming soon” to you employees.
Myth #3 ~ Millennials don’t need or want life insurance benefits
Peace of mind is a valuable benefit you can offer your employees. Whether they be young or old. Tomorrow is not promised any of us. Death can come at any age, why not protect your family. Offering life insurance to your employees, allows them to have peace of mind that their families will have extra dollars in the event that they are no longer around.
Magic #1 ~ Employees love benefits
Building a competitive employee benefits package is one of the most effective ways to attract and retain high-quality employees.
A well designed and implemented benefits package may include a number of different options. It could include Medical, Dental, Life, Vision, Vacation time, Additional time off for personal reason (kids appointments, sports or school events, etc.)
Magic #2 ~ Insurance Brokers help employers and employees navigate the complex confusion of benefits.
By working closely with an insurance broker that brings many options to the table is where the “magic” can begin for employers. Your broker can listen to what your vision is for building a benefits package. Once you both understand what this vision is, the designing and prioritizing comes into play.
Magic #3~ Become knowns as an Employer of Choice
Become an employer that candidates are eager to work for. Help your employees become experts and leaders in their communities. Someone that others can look up to favorably. You will quickly receive unsolicited resumes and your most talented employees will stay with you through out their careers. When your company brand is high, it’s much less expensive to recruit and retain key employees.
Mayhem #1 ~ Confusion about what is and isn’t allowed by employers
Employers with less than 50 employees are NOT required to offer any benefits to their employees. Many employees think with the new laws that all employers have to offer a full line of benefits. This causes much discord. The individual medical industry is a mess and your employees don’t understand where to begin and look to you, their employer to help with these types of decisions.
Mayhem #2 ~ Not receiving waivers for employees who don’t want part or all your benefits package
One of the costliest mistakes an employer can commit is to not have an employee sign a waiver. If employee #1 decides they do not want your medical plan (usually because of cost), you MUST make sure you have a copy of their waiver in their file. Too many times employees waive coverage and then a month later are diagnosed with cancer (they never thought it would happen to THEM) and they come back to you and say you never offered it to them. You could be held liable for the medical claims if a waiver wasn’t completed. You should always update the waivers each enrollment period.
Mayhem #3 ~ Fines…fines…fines…
The ACA is still the law of the land. Even though they are working to change or repeal it.
Stats from the Kaiser Family Foundation:
26% bought medical insurance because of the fines
63% of uninsured don’t know how much the penalty is
24% thought it was less than $1000
2018 Penalty:
$695 per adult / $347.50 per child
Capped at $2085 per family OR 2.5% of family income, whichever is higher.
2019: The only technical change to the ACC in 2019 is the removal of the fine for not having insurance in 2020.
Employers offering benefits to their employees, especially medical benefits help relieve their employees of the pressure of finding it on their own. 2018 is the first time that Employer Group Medical insurance is equal to or lesson than Individual Health in Colorado.
These are just the tip of the proverbial iceberg as it relates to benefits. Follow SW Insurance Corp on Facebook to learn more tidbits about the Myths, Magic and Mayhem that is Employee benefits.
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