Small Biz Owners And Affordable Benefit Plans

Milicia Hayle (Articles / News)

Can Small Biz Owners Offer Affordable Benefit Plans?


More small business owners are offering group insurance benefits. Plans are available for groups with as few as two employees. As you know, your employees are the best asset in your company. The cost of retraining due to employee turnover can be substantial. Employers are recognizing that a benefits plan is an effective tool for attracting and keeping employees. In a stressful economy, employers have been able to control payroll costs by offering benefits as part of their compensation. Insurance premiums paid by an employer are considered a tax deductible business expense.

 

Are you wondering if you can afford a benefits plan? The question today is increasingly becoming, “Can you afford not to offer a benefits plan and still remain competitive?” The insurers have changed their products to accommodate smaller businesses. Many limitations have been removed. Benefit plan designs are more flexible and comprehensive. Often, you can choose plan designs that meet employees' needs and fit within your budget. The most common benefit plans will include a Life Insurance benefit plus Health and Dental benefits. Some plans may include Short Term Disability and Long Term Disability. The cost for disability protection should be fully paid by the employee so that payment upon claim can be tax-free. As an employer, you can choose different levels of compensation You can also tailor the plan to fit your budget. For example, you could provide a plan that reimburses your employees for 80% of their eligible Health and Dental expenses (up to specified plan limits).

Benefits are affordable when they are carefully managed. They can be an asset that is enjoyed by all employees including the owner.

 

The following is a list of the common items and services insured under Health and Dental plans.

 

Health Care


Emergency Out-of-Country Coverage


Prescription Drug Coverage including a drug card so employees are not out-of-pocket at the time of purchase for amounts over any deductibles that may be applied

 

Paramedical Services include some of the following:  massage therapy services when provided by a registered massage therapist, chiropractor services, acupuncture, physiotherapy, psychology, naturopathy, and more. Paramedical services include an annual maximum per practitioner or a combined maximum for all. A common maximum will be $300 or $500 per specialist per year.

 

Eye exams included; glasses/contact lenses are optional

 

Orthopedic shoes, orthotics

 

Medical supplies and services, for example, diabetic supplies, hearing aids, nursing care, mobility aids and more.

 

Ambulance

 

Dental Care

  • Regular check-ups – every 6 or 9 months is most common
  • Cleaning & Polishing – every 6 or 9 months is most common
  • Periodontal Scaling services
  • X-rays
  • Fillings – white fillings included under most plans
  • Extractions
  • Fluoride – generally for children
  • Major Dental which includes bridges, dentures and crowns and Orthodontics which include braces are included under some plans. 

 

Coverage limitations are generally applied.

 

Today, small business owners can offer their employees an affordable benefits plan, still remain competitive and reap the rewards of both.

Milicia Hayle Read more of my articles GBA

Milicia Hayle is the Chief Benefits Consultant at usefulideas® with over 20 years' experience in the design and implementation of benefit plans. You may reach Milicia at milica@usefulideas.com

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