The rising costs of employee benefits is a challenge that many small businesses face. This is particularly true since healthcare reform has rewritten the rules when it comes to businesses and health insurance. By implementing a few of the following best practices, small businesses can decrease these expenses.
Encourage Health Savings Accounts (HSA)
A Health Savings Account (HSA) allows employees to contribute a portion of their pay tax free. This account can then be used for qualified expenses. While contributions are capped and non-qualified expenses are taxed, the list of covered medical expenses is extensive.
Promote Preventative Programs
As employees use their benefits, the cost of such plans often rises. Implement proactive programs, such as paid leave, discounted fitness memberships and ergonomically-friendly workstations, which focus on protecting the health of your employees.
Use Technology Wisely
Technology can streamline a host of activities including the administration of your employee benefits. By automating routine tasks, providing self-service options for employees and managing benefits using technology, the time and cost it requires can be reduced.
Get Customized Benefits
Not all industries are alike so your benefits provider should not treat them as such. Using the demographics of your industry to set their rates could help your business save money. Choose a benefits company that provides a range of options, such as PPOs, HMOs and supplementary plans so your employees can pick and choose what they need and build a customized package.
Choose the Right Benefits Partner
The Affordable Health Care Act continues to change the way businesses address healthcare and employee benefits. Partnering with a cutting-edge company that focuses on benefits enables you to stay abreast of any changes. The right benefits partner will also protect and advocate for your small business.
Utilizing the above suggestions allows your small business to effectively decrease the . This strategy helps streamline business operations while making it more competitive within its industry.
