By DALE McMINDES
In a time when out of pocket expenses for healthcare are rising, many employers are turning to Voluntary Benefits as a way to both create cost containment and allow employees to customize their benefits during Open Enrollment. Here are the 4 most frequently asked questions by employers.
What are the tax Implications of a Voluntary Benefit program?
Employees can pay pre-tax for their insurances saving them on average 22 percent. Employers can reduce their matching FICA to the same amount of pre-tax policies chosen.
How can a Voluntary Benefit offering help my staff?
Besides offering guaranteed issue insurance at a group rate with an additional tax benefit, Allstate rates do not change after issue. This allows employees to contain costs protected from the annual medical inflation and rising health insurance premiums.
How do Voluntary Benefits enhance my current benefits package?
By giving your employees access to Accident, Critical Illness, Cancer, Disability, Hospital Confinement plans, and Life Insurance, you allow them to customize their benefits based on the concerns and needs they have within their families, that you as the employer may or may not know about.
How can Voluntary Benefits potentially save my business money on our Major Medical program?
Due to the rising costs of healthcare, many businesses are opting for High Deductible Health Plans. By implementing an affordable voluntary GAP Insurance program, you can effectively reduce their deductible and out of pocket max. This can be a very effective strategy in providing first dollar coverage for employees with expenses tied to their health insurance program, while allowing the employer to choose a more affordable high deductible health option as a base plan.
Dale McMindes is the owner of McMindes Insurance Group of Orlando. The agency has over 30 years of combined industry experience. In the first 5 years he achieved the Allstate National Conference and the Florida Region Honor Ring twice. He can be reached at DaleMcMindes@allstate.com