Got Coverage? Balancing Health Plan Coverage & Benefit Costs
Even though Thanksgiving is behind us, it’s time to talk turkey about the business implications of employee benefits—and the budget. One-size-fits-all primary health insurance plans don’t leave employers much flexibility. Voids in health plan coverage, though, can cause big problems.
As employers and advisers finalize benefit planning for next year, it’s wise to look to flexible solutions like supplemental health insurance plans. These carve-out options offer cost-effective ways to provide robust health plan coverage to employees while managing the benefits budget. Read on for three ways that carve-out coverage can help.
Enhance health plan coverage
Sometimes, employers need more flexibility to meet specific employee needs. These can include, for example, benefits like infertility treatments, support for mental health or the specific expectations of top performers. Limited affordable options can make it difficult for employers to meet these specific needs. To balance health plan coverage and costs, employers can offer carve-out options for specific benefits or valuable coverage enhancement for any class of employee—as defined by the employer.
Recruit or retain with robust health plan coverage
It’s hard to recruit or retain top talent with unimpressive health benefits. In addition, small businesses often lack the buying power to obtain robust health insurance options, offer lower deductibles or avoid downgrading current coverage. Again, carve-out options can come to the rescue. Flexible supplemental health insurance benefits can be used as sign-on incentives or to reward performance—often offering more take-home value than a one-time bonus.* As above, employers can selectively offer for class or role as they define—and keep other employees on a low health insurance plan.
Reduce financial strain with better health plan coverage
Rising health plan costs and increased deductibles have contributed to financial strain for employees. Health savings accounts (HSAs) introduce problems like timing, which can render them insufficient for funding out-of-pocket costs. Ultimately, employees may delay or skip routine care,1 and it can damage their health and productivity. Supplemental health insurance benefits can close voids in health plan coverage—even for routine care—that contribute to financial strain. This type of benefit has the flexibility to be carved out for leaders or for specific types of roles that may be difficult to recruit or retain. ArmadaCare plans can even be offered for a minimum of three employees, making them a cost-effective answer to the coverage vs. cost challenge.
How to make employees feel valued with health plan coverage
Enhancing or shoring up health insurance benefits can go a long way to helping employees feel cared for and valued. And it’s effective for retention: analysis has found a 4X improvement in retention among those enrolled in an ArmadaCare plan when compared to the national average.2
Benefits like Ultimate Health by ArmadaCare can help employers boost coverage for select leaders or roles with coverage for prescriptions, wellness treatments, office visits and more. Plans like Ultimate Health sit outside ACA, so non-discrimination rules don’t apply and coverage can be offered on a tax-efficient basis.*
*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.
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1 Kaiser Family Foundation, 2021
2 ArmadaCare’s enrollment data and Bureau of Labor Statistics Turnover Data
ArmadaCare’s supplemental health insurance policies are underwritten by Sirius America Insurance Company and Transamerica Life Insurance Company. Insurance plans and coverages vary by state. Please contact us to confirm state availability