Offering Health Insurance

Companies Offering Health Insurance Stipend Instead of Group Health Coverage are not Getting the Biggest Bang for their Buck.

Articles like Obamacare Options? In Many Parts of the Country, Only One Insurer Will Remain written by the New York Times or Forbes’ article Health Insurance Premiums Have Continued To Rise Faster Than Worker Wages Under Obamacare highlight the pitfalls of the well-intended Affordable Care Act (ACA) marketplace. These articles cite severely limited options and rising premiums as the biggest hurdles for those seeking coverage.

Are your employees among those who purchase coverage in the marketplace?

Many business owners have chosen to give their employees a stipend (whether required by the ACA to do so or not), instead of offering group health insurance sponsored by the company. What may surprise these business owners is the minimal impact their contribution is actually having on their employees’ financial obligation. There is significant evidence that benefits dollars are more wisely spent investing in a group health plan.

Employers with a group health plan choose the amount they wish to contribute toward the employees premiums, while employees absorb the remainder of the total premium cost. Additionally, the employee’s portion is deducted from their paycheck before taxes are computed.

While the employer is still contributing the same amount of money toward the employee benefit plan. The employee takes advantage of lower premium rates for the same or greater coverage in addition to the pre-tax savings.

But I’ve explored group health insurance options and they are just too expensive for a group my size!

What you may not know is that Professional Employer Organizations (PEOs) combine smaller groups together to obtain medical coverage with the same economies of scale that a much larger company experiences.

PEOs offer savings on other benefits too, like dental, vision, life, long and short term disability insurances, 401(k) plans and workers’ compensation.

Partnering with a PEO will enhance a small business’ buying power–allowing their benefits dollars to go exceedingly further!

Tandem HR

A Chicago area PEO that assists hundreds of small and mid-sized businesses with creating benefits packages to rival those of Fortune 500 companies. See just how far your dollars can go when partnering with a PEO!

Tandem HR also helps clients save time and money while growing their business by taking on the administrative tasks associated with human resources, benefits, payroll, tax administration, regulatory compliance and risk management.

For more information or a FREE quote, contact us today at 630.928.0510 or fill out the form and one of our Business Development Managers will contact you.

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