Sat down with a SmallBiz Owner Customer for their Year-End Review last week. They have a Traditional Group Insurance Program in place and have seen high double-digit renewal increases over the last couple of years. This is not uncommon for a Program that features 100% Premium being paid by the Customer and 100% Reimbursement for their Employees’ Health and Dental benefits.
This year, the Customer voiced some concern that he feels his Employees have a bit of an entitlement attitude and really don’t appreciate how much he pays into the program.
Fortunately, the Year-End Review is designed to address any issues that a SmallBiz Owner Customer has with their Benefits Program. After going through the Suggested Renewal position of their Current Carrier, we then reviewed his options:
- Negotiate and Stay with their Current Carrier.
- Cost out Plan Design changes to Enhance or provide Cost Containment measures.
- Market the Program.
- Switch to an Administrative Services Only (ASO) Program.
- Switch to a Health Care Spending Account (HCSA) Program.
- Introduce a Hybrid Program.
- Realize the Advantages of a Flex Program.
While we went through these same options last year, this year the idea of a Flex Program resonated because of his concerns with the lack of appreciation coming from his Employees.
What better way to build your Employees’ appreciation of their Benefits Program than by empowering them with deciding on what Plan Design they would like to have?
With myFlex from Equitable (I would talk in more general terms but Equitable is the only Carrier that offers Flex Benefits), each Employee is given Flex Credits and they decide how they are going to allocate them. If the Employee has Flex Credits left over, then the excess goes into a Health Care Spending Account. If they choose Benefit Options that add up to more than the Flex Credits allotted, then the gap is filled with Payroll Deduction…If they want the higher level of benefit, then they pay for it.
Located in Cambridge, ON Sharkey Group Insurance provides independent Employee Benefits advice & counsel for Small Businesses across Ontario.