Slash Executive Turnover with Expense Reimbursed Health Benefits for Employees

There’s no sugar-coating it, the competition to attract and retain top talent is scarier than ever. For job seekers, enhanced benefits for employees are at the top of their minds. Meanwhile, fears of losing top talent have led companies to prioritize benefits that fill coverage gaps in primary health plans, enhancing executive-level employee well-being.

For employers, reframing their outlook on benefits is crucial to remain competitive. Optimizing benefits for employees is an investment in a company’s future rather than an annual one-and-done expense like a bonus or salary increase. However, just as with any paradigm shift, there can be challenges that ultimately require strategic adaptations.

Challenge 1: Meeting Today’s Expectations of Better Benefits for Employees

According to a report published this year, 67% of employees believe that employer-covered healthcare is the most important benefit¹. So much so that more than a quarter of employers have cited better benefits as a reason their employees voluntarily leave. Executive-level employees now expect flexible, comprehensive benefits with more coverage, so offering a traditional package with high deductibles and high out-of-pocket expenses is no longer enough. As healthcare costs and deductibles rise, employers must select and position benefits that top talent wants and needs.

Challenge 2: Compensation Packages That Prioritize Employee Well-Being

Companies would love to treat their key decision makers to higher compensation or more frequent bonuses, but budget constraints can prove difficult, especially when it comes to standing out from larger competitors with bigger budgets. Curating an attractive benefits package gives a company an edge over fierce competition, but it is notoriously expensive, right? Not with benefits for employees that leverage the power of supplemental expense reimbursed health insurance solutions.

Robust compensation packages need to address executive employee well-being and should include innovative benefit solutions that offer fully insured coverage for a broad range of out-of-pocket expenses such as elective executive physicals, robust dental and vision coverage, brand-name prescriptions, and more.

Challenge 3: Coverage for Select Employees

Currently, many employer-based benefit packages include things like high-deductible primary health insurance and basic coverage for dental and vision, which may be sufficient for entry-level or broad-based employee needs. But key decision makers and executives have unique work-life challenges that require enhanced options. Their health and productivity impact the entire company. Frequent travel and high-stakes decision-making put them at an increased risk for health issues, including heart disease, mental health stress, and more².  And when executive productivity wanes, loyalty and retention suffer.

But can companies really offer enhanced benefits to just a select group of people? Yes! Employers can carve-out coverage for select employees by implementing supplemental expense reimbursed health insurance plans that include ACA-excepted benefits. The employer picks who receive the plan and why.

Solution: Taking Your Executive Benefits from Scary to Spectacular

Addressing the needs of executive-level employees does not have to be a scary undertaking. By implementing a supplemental expense reimbursed insured plan, like Ultimate Health^® by ArmadaCare, companies can provide a financially efficient way to compensate and reward key employees and leadership. Here’s how:

• Enhance existing benefits for employees:  Many employers offer primary health insurance plans as part of their benefits package, however, these traditional plans often have visit limits or minimal coverage, leading to high out-of-pocket expenses. Companies can enhance their benefit packages by adding on a supplemental expense reimbursed plan which layers additional coverage and reimbursements on top of existing primary plan coverage.

• Innovative benefits for employees: With robust coverage that extends beyond that of primary plans, expense reimbursed benefits for employees often include coverage for things like preventative testing, executive physicals, luxury dental and vision coverage, and more. With 54% of employees wanting more customized benefits to meet their personal needs², there’s no reason not to offer them.

• Year-round reminder, loyalty enhancer: Supplemental health reimbursement plans like those offered by ArmadaCare have no waiting period and are utilized consistently by executives. In fact, the average ArmadaCare member engages with their plan 81 times per year, or 1.5 times per week³ – a great reinforcer of the value and impact executives make at a company.

• Tax-deductible* premiums: The company-paid premiums for supplemental health reimbursement plans, in many cases, are tax-deductible as a business expense. So, companies can potentially reduce their taxable profits by including the premiums in annual business deductions.

• Tax-efficient* reimbursements: Imagine an executive-level salary of $250,000: if the company opts for a 4% increase, the cost to the employer would be $10,000; however, after payroll and other taxes, the executive will net roughly $6,000, or around $230 additional per pay period⁴. By investing the same amount as a salary increase into a supplemental expense reimbursed plan, you could offer tax-efficient reimbursements totaling $50,000 up to $100,000 annually.

Conclusion: Implementing Supplemental Expense Reimbursed Benefits for Employees is a Win-Win

The vitality of a business lies in executive-level employee well-being. While fair compensation is essential, it alone doesn’t create the deep engagement and sense of belonging that stem from thoughtfully crafted benefit and well-being programs optimized with supplemental health insurance. ArmadaCare’s supplemental expense reimbursed health insurance solutions go beyond mere financial rewards—they nurture a thriving leadership team and foster a genuine connection between executives and their workplace. With tax-efficient* benefits for top talent, targeted benefit enhancements, and customized employee well-being programs, you’ll create an environment where talent thrives. 

*This is not local, state or federal tax advice as each person and each company is unique. It is recommended that you seek the independent counsel of a professional tax adviser.

ArmadaCare’s supplemental health insurance policies are underwritten by SiriusPoint America Insurance Company and Transamerica Life Insurance Company. Insurance plans and coverages vary by state. Please contact us to confirm state availability.

¹https://www.forbes.com/advisor/business/best-employee-benefits

²https://www.mercer.com/en-us/insights/total-rewards/employee-benefits-strategy/employee-benefits-design

³ArmadaCare Claims Data, 2023.

⁴Compounded tax rate of 40-50% is for illustrative purposes only. Employer state and federal payroll taxes and other payroll costs are estimated and may vary depending upon the company and state. Actual premiums will be determined based on standard underwriting guidelines and characteristics of the group.