At the Benefits Help Desk we often hear from employees who are unclear on the difference between their employer-sponsored health plans and the coverage they can purchase outside of work, like those available from the individual marketplace. We all know how difficult healthcare can be to navigate. It’s no surprise that it may not be obvious to employees just how good they have it by receiving coverage through their employer – instead of being left to fend for themselves in the marketplace.
So why not take the reins and show your employees how their employer-sponsored benefits work before they fall down the health insurance rabbit hole? If done the right way, educating your workforce on the advantages that employer-based coverage holds – and the potential disadvantages of individual marketplace coverage – can speak volumes towards employee retention and loyalty.
To most of us it is very clear that employer-sponsored coverage is significantly better than individual options. Coverage is broader, out-of-network benefits may be available and, should coverage terminate, employees may be eligible for COBRA not only for them, but also for a dependent losing coverage.
Here are a few other facts that we feel your employees should be aware of:
- Through an employer-sponsored plan payroll deductions allow employees to pay their premiums before taxes, lowering their taxable income – something that cannot be done through the individual market.
- Premiums are partially subsidized by the employer, unlike those on the individual exchange.
- Employers cannot make contributions to Health Savings Accounts obtained on the individual market. This assistance can be a crucial helping hand to employees who can’t afford to pay high deductibles, but have no other affordable plan alternative.
Advocacy services, such as our own Benefits Help Desk, aren’t available outside of the workplace either. These services are an invaluable benefit to employees and their dependents. Our support center works directly with members on issues like claims resolution, administration, open enrollment and carrier or plan change questions.
Frenkel Benefits can help you prepare total compensation or benefit statements which highlight these advantages and also inform your employees of the cost and value of these employer-provided benefits.
The more you educate your employees about the advantages they can obtain only through employer-based health plans, the more they appreciate those benefits. We all know how important it is that your employees feel valued by you and it’s equally as important that you are valued by them as well – it’s a win-win situation. A qualified, experienced broker-consultant can assist you in meeting that goal.