Employee Health Benefits In Detail: What You Must Know

A health insurance plan gives preventative care to employees, that help them stay healthy and productive. Learn about employee health benefits from the article.

In this digital age of job hopping, millennials are keeping their employers on their toes with their non-conventional, new age work culture. From remote work to flexible hours, millennials are disrupting the workplace with their preferences and expectations. At the same time, they are also adapting to their employers needs and preferences. But not all workplaces are receptive to the needs of millennials. Many companies still follow conventional HR practices and policies that dont take into account the unique needs of this generation. With the increasing cost of living, millennials may not be able to afford housing or other necessities unless they opt for a roommate or some other cost-cutting measure. This poses a serious challenge for millennial job seekers because most hiring managers arent comfortable hiring applicants who are still in school, unemployed, or working part-time jobs as a result of financial constraints.

Health Benefits for Employees: A Must-Have in the Modern Workplace

Health benefits are a huge part of any job candidates compensation package. Very few people will work a job purely for the salary. Most people need to feel that they are doing something beneficial to themselves and to others. A healthy workplace is essential for keeping employees happy and productive. It is also a great way to attract new talent. People want to work for a company that has their best interests in mind. Employers who offer health benefits can expect to see an 8% increase in productivity and a 5% decrease in turnover. Some studies suggest that investments in health benefits are 10 times more effective than investments in financial incentives. Health benefits are so important that some candidates will even accept an overall salary thats lower than their asking rate if theyre offered a great health benefits package. So, it makes sense for companies to provide health benefits to their employees, right? Unfortunately, not all companies provide health insurance to their employees. Companies that employ independent contractors, freelancers, or other non-traditional staff members often dont offer health benefits.

Health Insurance for Employees: The Basics

Health insurance protects your employees against the high costs of healthcare by paying for a portion of their treatment expenses. Health insurance can also cover preventative treatments that can help employees avoid more serious problems in the future. Depending on the type of health coverage you provide, your employees may also have access to wellness programs, prescription drug discounts, or other added benefits. Health insurance can be provided through an employer-sponsored plan, where the company covers the full cost of the employees premiums, or through an individual health plan, where the employee pays the full cost of their monthly premiums.

Employer-sponsored health plans are often referred to as group health plans, while individual plans are known as individual health plans. While many of the details of how each type of health plan works are different, they all share the same basic purpose: to provide health insurance to you and your family. Health plans help cover the cost of certain medical services, prescription drugs, and other health care expenses. As with any insurance policy, there are certain rules that you must follow to receive the benefits offered by your health plan.

Which is a better benefit for employees, Healthcare or Dental?

This depends on each employee and his or her particular needs. Factors like age, health conditions, and family situation are all taken into account when determining the best coverage for an individual. While a younger employee with no significant health issues might benefit more from dental coverage, an older employee whos had health problems in the past or has a family history of serious medical conditions might prefer a high-quality health plan. Healthcare and dental coverage can also be combined into one single plan, which allows you to provide your employees with more benefits at a lower cost. Combination plans are also more convenient for employees instead of having to remember two plans and complete two separate enrollment processes, they only have to focus on one.

Youll Still Need Additional Coverage

Depending on the types of coverage you offer your employees, you may be able to cover a majority of their health needs, but there may still be gaps in your plan. Employees may be able to cover some of their expenses with a Health Savings Account (HSA), Flexible Savings Account (FSA), or a Health Reimbursement Account (HRA), but these are limited in what they can cover. If an employee has a serious medical condition, such as diabetes, they may need to purchase supplemental insurance to cover the cost of insulin and other diabetic supplies. If your plan doesnt cover vision or dental, your employees may also need to purchase additional coverage. If your plan doesnt include coverage for mental health or substance abuse treatment, employees may also need supplemental insurance to help them access the care they need.

What to look for when hiring employees with benefits

• Benefits package: The first thing youll need to do is decide what type of coverage you want to offer your employees. There are a variety of plans to choose from, and each has its strong points and weaknesses. Once youve decided on a plan, be sure to communicate it to your employees. Surprisingly, only about half of all employees understand what type of coverage theyre receiving.
• Coverage: Next, youll want to make sure youre picking a plan with enough coverage. Coverage refers to how much your plan will pay toward an employees medical expenses. Most health plans pay between 70% and 90% of medical expenses, but this can vary depending on the plan. Make sure your plan provides enough coverage to meet your employees needs.
• Cost: Finally, youll want to make sure your plan isnt too expensive. Depending on the type of coverage you offer, you may be able to get a discount on your premiums if you hire an eligible employee through an online hiring platform.

Conclusion

Health insurance is an important benefit that employers cant afford to ignore. Its critical to your companys success that your employees have coverage. Insurance helps employees with medical bills, but it also plays a critical role in keeping your companys employees healthy. Healthy employees are more productive, which means youll spend less on hiring and training new employees. Whats more, healthy employees are likely to stick with your company longer. Unfortunately, many companies that rely on full-time staff fail to offer health insurance to their employees, which creates a major barrier for job seekers. Fortunately, health insurance is very affordable for part-time employees and freelancers, who can purchase coverage through the Affordable Care Act marketplace. If you provide health insurance for your employees, be sure to give them the information they need to apply for coverage and understand what the plan covers.