Professional employment organizations, or PEOs, are a convenient way for small to mid size businesses to handle their human resources requirements. Most PEOs will offer employers a wide range of back office support services, including payroll and benefits, such as group health insurance. Other PEO services may include legal, tax, administrative, and outsourcing of the entire HR and accounting function.
PEOs often base their rates for their services on a modest percentage of billings, plus various charges for services rendered. For growing businesses, Professional employment organizations may allow companies to hire more "front office" positions such as in sales or marketing, which could help the company secure the talent they need to grow faster.
There is a hidden cost to PEOs which is usually not discussed prospective business clients in Dallas Fort Worth, Texas. These costs could add significantly to the actual cost of a company joining a PEO.
When a company joins a PEO, the business's employees legally and technically become employees of the PEO, and not the business entity. Employees then are paid a salary or wage by the PEO, enroll in benefits provided by the PEO, and then the PEO bills the business entity.
Because the PEO usually has thousands of employees in under their Texas group benefits program, one would think that the PEO could offer more affordable group health insurance than if the company offered benefits to its own employees.
This could in fact be the case if the Texas business has unhealthy employees, as insurance carriers would "rate up" (charge higher rates) to unhealthy companies. In fact, according to Texas insurance laws, insurance companies can rate up the group health insurance premiums to a texas small business by up to 66% over standard rates if the company has unhealthy employees.
Because of this, PEOs may tend to attract companies with unhealthy employees. And over time, companies with healthy companies may tend to leave PEOs as they could qualify for lower group health insurance rates on their own.
And group health insurance carriers, knowing this tendency of PEOs, often rate up PEOs vs. other business industrial classifications. So the rates may start higher for employees of PEOs, and may climb at a higher rate over time.
So a Dallas Fort Worth small to mid size business that starts out thinking a PEO is a good deal vs. staffing up for back office positions should know all of the hidden costs of PEOs.
Any such staffing savings could easily be negated by the higher rates for benefits through a PEO. For example, since the current annual cost of health insurance for an employee in Texas is about $4500 to $5,000 (less the portion that the employee pays), if there is a premium of 20% in the cost of group health insurance through a PEO, that could mean an employer with employees of average age and health would pay perhaps $1,000 more for purchasing group health insurance benefits per employee per year through a PEO.
Knowing this, before signing a contract with a professional employer organization, a North Texas business should first get an independent assessment of their company's employee health and obtain quotes for employee benefits and group health insurance for their company from a Dallas group benefits advisor or texas group health insurance broker. And any Texas business currently contracted with a PEO should annually check the cost of obtaining group health insurance and other employee benefits as a stand alone company.
If your Texas business is contracted with or is considering contracting with a PEO , you can receive a a no obligation assessment of your group health insurance and employee benefits and receive recommendations for alternate employee benefits solutions by contacting Mike Chapman of Group Benefits Advisors, Dallas Fort Worth, Texas, (888) 398-6246.
As Dallas group health insurance rates have doubled in the last five years, employers have had to pass on more of the Texas health insurance premium expense increases to their employees. Many Dallas Fort Worth Texas employers have also been forced to offset the rising Texas group health insurance rates by raising the plan deductibles and coinsurance of the plans that they offer to employees.
Studies have shown that the majority of Americans have savings of less than three months of living expenses. The typical Dallas employee has credit card debt, car loans or leases, and mortgage, rent or lease obligations that consume most of their paycheck.
The result is that the typical Dallas area employee who contracts a serious illness or has a serious accident can be financially devastated even if their employer offers a Texas group health insurance plan as part of the employee benefits of the firm. A family of four could easily have a group health insurance plan that leaves the family responsible for out of pocket expenses of between five to fifteen thousand dollars.
For many employees, a major medical expense could be the cause of financial ruin, even if they have a group health insurance plan. In fact, medical expenses are the leading cause of bankruptcy in this country.
Medical gap plans in Texas have recently been introduced by forward thinking insurance companies as a way for employees to take the "ouch" out of the out of pocket risk of their health insurance plan. What medical gap plans do is pay the employee cash to help them pay for major medical insurance expenses.
Colonial Life and Accident, also known as Colonial Voluntary Insurance, introduced in July a very affordable medical gap plan in Texas. with a number of innovative features that take away much of the risk for Dallas area employees with high deductible group health plans. Like other Colonial products, their medical gap plan can be a voluntary benefit that the employer can make available to their employees to purchase and have the premium taken out of their pay check.
Texas employers may also want to purchase Colonial's medical gap plan for their employees. A quick check of Colonial's new medical gap plan rates have shown that a Dallas employer will actually spend less money if they combine Colonial's medical gap plan with a higher deductible group health plan than if they purchased a lower deductible group health plan from their group health insurance company.
This medical gap plan and high deductible health plan strategy can also help lower a company's future rate increases, since the group health insurance carrier bases rate increases partially on the number and size of group health insurance claims. A higher group health insurance plan means fewer claims will paid by the insurance company.
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For more information about medical gap plans in Texas and how Group Benefits Advisors can help your Dallas Fort Worth Texas business save money and offer your employees better employee benefits such as group health insurance, life insurance, dental vision and disability insurance, contact Mike Chapman at
Filed under Consumer Driven Health Plans, Dallas Fort Worth Group Health Insurance, Employee Benefits Solutions, Group Benefits Advisors, Group Health Insurance Quote, Group Health Insurance Rate Texas, Group Health Insurance Texas, Health Insurance: Texas Small Group, Texas Group Health Insurance, Texas large group health insurance plans by on Aug 16th, 2007. Comment. 
If your Dallas company's open enrollment period for your Texas group health insurance plan is at the end of the year, you will soon be facing tough economic decisions. Your Dallas group health insurance broker will soon be delivering the bad news to you: Your rates will likely be somewhere between nine to fifteen percent higher next year for the same level of coverage.
If you are have a Texas small group health insurance plan (with fifty or less employees), by law, Texas group health insurance carriers cannot raise your premiums by more than fifteen percent. If your company has more than fifty employees in your Texas group health insurance plan, there is no limit to the potential increase.
The most obvious budget options are for you to reduce the coverage offered to employees by raising deductibles and reducing benefits, hold employees accountable for a greater portion of their group health insurance premium, charge more for your company's products or services to recoup the cost increases, or perhaps budget to sell more of your company's products and services, or show a lower profit.
Perhaps to deflect part of the criticism, some group health insurance brokers in Dallas Texas may also recommend changing insurance carriers. Be cautious if your broker recommends to you that you change group health insurance carriers in Texas because of rate differences alone.
Our experience is that this is a very competitive market, and group health insurance rates in Dallas usually do not vary much from one company to another for comparable coverage, so unless your company or employees have have received poor service, a rate increase is usually not a good reason alone to change group health insuarace companies.
Group health insurance carrier changes can cause frustration and disruption among employees and dependents who must at times change their doctors to ones that accept the plan's PPO, and any rate difference between companies is usually short lived.
So what can a budget-challenged company administrator to do to reduce the impact of inflationary Dallas group health insurance rates?
First, consider asking your employees. Employee input into budget choices at this time of year can be an empowering and a motivating force. Employees are smart, they read the newspaper and watch television and they know that providing group health insurance for employees is expensive. Let them know how much the rates will increase for the next year, both overall to the company, and per employee. Get their input on some of the options that your company has to cover the cost increase.
Second, ask your Dallas group health insurance broker for recommendations. Any broker can deliver the bad news, and show comparison rates from other Texas group health insurance companies. A smart broker can show you group health care insurance solutions that you can implement without changing group health insurance companies. Often, a smart broker can recommend strategies that allow an employer to provide similar or possibly even better benefits to employees at a reduced rate.
Keep in mind that a broker earns a commission on the premiums you pay, and a broker who has put their own self-interest over your company's best interests may not want to recommend strategies that could reduce your group health insurance premiums, as that reduces their income.
Some possible strategies for you is first to consider implementing a Texas consumer driven health plan as an option for employees. These plans are very inexpensive because they have high deductibles and many plans also do not have Rx or doctor visit copay benefits until the employee meets their high deductible. The premium that the employer and employee pay for coverage in one of these plans is much lower than a traditional plan.
Since most employees (over two thirds) never meet their deductible, a consumer driven health plan can be a good option for healthy employees who rarely go to the doctor. An employee with one of these plans can then set up a health savings account (HSA) that works like an IRA to save money tax-free for future health dental and vision care expenses. The employee or the employer can choose to make periodic contributions into the HSA so that the cmployee has funds available to meet out of pocket expenses from the occasional doctor visit.
Another option for your company may be to couple a high deductible health plan with a health reimbursement arrangement, or HRA for employees. Since the deductible is high, the premiums are low. You set up the HRA to reimburse employees for eligible medical expenses after they pay for a set amount of expenses, say $1,000 to $1,500. The group health insurance plan then pays after the higher deductible is finally met. But unlike HSA plans above, the health insurance plan can have Rx and doctor visit copay benefits before the deductible is met.
Both the HRA and the HSA are great devices to lower insurance premiums, and give employees incentives to be careful about their own health and spending the health care benefits wisely. And because over time the insurance carrier pays fewer claims, future inflationary rate increases will be less.
Another strategy in controlling the cost of health insurance for your employees is to give them the tools and the incentives to improve their own health.
Tobacco, poor nutrition and sedentary lifestyles among employees leads to chronic, debilitating, and expensive diseases such as diabetes, cancer, heart attack and stroke to name a few. Encouraging and rewarding employees to maintain healthier lifestyles can have a direct impact on the cost of your company's group health insurance rates in Texas and can improve employee productivity by lowering absenteeism.
Ultimately, the only way for a company to control their group health insurance costs is to improve the health of their employees. A smart broker can show you how you can implement a corporate wellness plan for free that can be paid for out of savings from implementation of a consumer driven health plan.
So if your Dallas group health insurance broker has never recommended or discussed in detail solutions that your company can use to help control group health insurance rates, and if your broker has recommended changing insurance carriers for the sake of a minor insurance rate difference, then you should discuss the above suggestions with your broker and get their input. If the suggestions are rejected out of hand, then perhaps it is time to put your interestes ahead of your broker's.
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If you would like a no-obligation consultation for your company's dalllas employee benefits plan, including Texas group health insurance quotes, contact Mike Chapman at GroupBenefitsAdvisors.com, 214-764-6315 or (888) 398-6246.
Filed under Consumer Driven Health Plans, Dallas Fort Worth Group Health Insurance, Employee Benefits Solutions, Employee Wellness, Group Benefits Advisors, Group Health Insurance Quote, Group Health Insurance Rate Texas, Group Health Insurance Texas, Health Insurance: Texas Small Group, Texas Group Health Insurance, Texas large group health insurance plans by on Aug 7th, 2007. Comment.
Fully-insured group health insurance plans in Texas are subject to the laws of Texas, as well as federal ERISA laws. As such, fully-insured Texas group medical insurance plans are required to have benefits that have been mandated by the Texas legislature in addition to following federal rules. This includes benefits that the employer and employees may never need or use but must pay for so that other non-employee Texans can be assisted by the mandated benefit.
Fully insured Texas group health insurance plans group, or "pool" the employees of one company with the employees of many other employers in Texas. This is a basic principle of insurance that allows Texas group health insurance companies to spread the risk of major medical claims across a statistically greater number of individuals and companies.
This "pooling" allows businesses, especially small businesses in Texas, to eliminate the catastrophic financial risk of a major medical insurance claim by an employee.
Because of this spreading of risk, a health insurance premiums for a company with a fully insured group health plan will be affected by not only the health and age factors of their own employees, but also by those of other employees and employers in the Texas group insurance carriers pool of members.
Employers with fully-insured group medical insurance plan can partially influence their rates by encouraging employees and dependents to have healthy lifestyles, such as exercising, maintaining a healthy weight, and avoid tobacco and alcohol use. But there is very little at all that a company with a fully-insured health insurance plan can do to reduce the impact of health insurance claims from other employees and companies in the same group health insurance carriers pool of members.
This is why some Texas businesses may decide to self-insure, or self-fund medical claims of their employees. They can more readily determine which benefits that they want to include in their group health insurance plan, with fewer government mandates.
The company that self funds their insurance often contract with a third party administrator or use a Texas health insurance carrier for administrative services only to reimburse health care providers for their employee's medical expenses.
But the overall cost of insuring employees with a self-funded group health insurance plan in Texas is often (but not necessarily) less expensive than the cost of insuring employees with a fully insured group health plan.
Companies with self-funded health insurance plans in Dallas are more in control of their own health costs, as their rates will not be directly impacted by the "pooling" effect of other companies and employees in the area.
Self funded health insurance plans in Texas statistically have more risk of major catastrophic health insurance claims, which makes them more appropriate for larger companies with several hundred employees. But there are examples of "risk-taking" companies with fifty employees that offer self-funded group medical insurance plans for their employees.
Companies with Texas self-funded group health insurance plans can reduce their risk of major medical insurance claims by purchasing reinsurance from a reinsurance carrier in order to reduce their risk of overall medical insurance claims in any one year.
For example, a Plano Texas company with 200 employees could self-insure, but purchase reinsurance that protects the company from the risk of any additional medical expenses after the company paid, say, $250,000 in medical claims in any one year. The cost of that reinsurance policy and the total costs associated with administering the self-funded plan would likely (but not necessarily) be less than the cost of a fully-insured health insurance plan in Plano, Texas.
There is actually a new opportunity for CEOs to consider that could possibility benefit Dallas area companies with either self-funded or fully insured health plans. Within the last two years, group health insurance carriers in Texas have introduced a tremendous number of fully insured group health plans with high deductibles and without Rx or doctor visit copay benefits. Many of these plans have been priced very low on a per employee basis by the group medical insurance companies in Texas.
At Group Benefits Advisors, we have shown client companies how they can reduce the cost of health insurance and lower their risk from a self funded group health plans by purchasing one of these low cost, fully insured high deductible group health plans with deductibles of $5,000 to $10,000 per employee.
By implementing a no cost health reimbursement arrangement (HRA) to reimburse employees employees after they meet the same deductible as they had with their self-funded plan, then "bolting on" to the employee benefits plans such items as a Rx card benefit from lower cost third party resources, the employee has the same benefits as they had before.
But because of the way that some of the Texas high deductible group health insurance plans have been priced by insurance companies, it is now possible that a company could spend less money to cover their employees with one of these fully insured plans and with much less risk to the business than if they had a Texas self-insured plan or partially self-funded plan in Texas with reinsurance.
To determine which strategy works best for your Texas company and for your employees, and for a no-obligation employee benefits consultation, contact Mike Chapman at Group Benefits Advisors, (214) 764-6315 or (888) 398-6246.
Filed under Contact Group Benefits Advisors, Dallas Fort Worth Group Health Insurance, Employee Benefits Solutions, Group Benefits Advisors, Group Health Insurance Quote, Group Health Insurance Rate Texas, Group Health Insurance Texas, Self Funded (Self-Funded) Health Insurance Plans, Texas Group Health Insurance, Texas large group health insurance plans by on Aug 1st, 2007. Comment.
If your are evaluating large group health insurance companies in Texas for your company's employee benefits program, here are some important items that you should consider.
First, to be eligible for an insurance plan from a large group health insurance company in Texas, the number of eligible employees in a Texas business must be above 50 employees. The number of eligible employees should consistently have been above 50, especially for the last quarter of the year.
Second, an eligible employee is considered by Texas law to be anyone who works 30 or more hours per week for the company. Companies that utilize a number of seasonal or employee workers on an "as needed basis," or who utilize contractors (1099) must abide the wording of specific federal regulations and should consult with an employment law attorney for additional advice.
And third, a Texas business is considered a business which is headquartered in Texas, with the primary location of business in Texas, and the majority of employees based in Texas. Companies headquartered elsewhere, or doing business in multiple states, or with a majority of employees based in other states may not be elegible for an insurance plan from a large group health insurance company in Texas.
If you are uncertain of your company's status, you should contact a large group health insurance agency in Texas such as Group Benefits Advisors that is licensed and appointed to represent large group health insurance companies in Texas as well as in other states. Group Benefits Advisors specializes in Dallas medical insurance, and related group and employee benefits plans.
If your business is considering changing your large group health insurance plan, your first consideration should be the consistency and quality of customer service from both your large group health insurance carrier in Texas, and from your Texas group health insurance broker.
Have your problems such as claims and enrollment been handled promptly and professionally, throughout the year? Have you been able to meet and review your company's medical claims, as well as discuss with your broker ways and means to achieve better coverage at a lower cost?
Dallas Fort Worth, Texas has some of the highest medical insurance rates in the U.S. The reasons for this are many, but here are some of the most obvious contibuting factors.
Dallas Fort Worth, Texas has one of the highest level of uninsured adults and children in the nation. Some state and federal agencies estimate the area uninsured rate at almost one out of two adults. Uninsured individuals will often wait until a health condition becomes critical and then seek treatment in the emergency room of a local hospital. The cost of hospital treatment for indigent uninsured that are is covered by local, state or federal agencies is picked up by those who can pay, and much of this is covered by medical insurance.
Also, Dallas Fort Worth, Texas has been cited in a number of state and federal surveys as having one of the least healthy populations in the country. Dallas and Fort Worth usually rank within the top ten cities in obesity surveys among cities of 100,000 or more population. Obesity is on the rise, and is a key contributing factor to major and expensive debilitating diseases such as diabetes, heart and circulatory illnesses, and stroke.
Environmental health is also a local concern. High levels of ozone and air pollution contribute to poor public health, and can cause or aggravate serious diseases and health conditions.
Another major contributing factor to the cost of medical insurance is the Texas state legislature and Texas State Insurance Code. Each legislative session, members of the Texas House and Senate introduce and pass dozens of laws that affect individual and small group medical insurance rates.
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For information about how your Texas company can reduce high group medical insurance rates, contact Mike Chapman at Group Benefits Advisors, (888) 398-6246,
Small business owners in Dallas Fort Worth Texas often turn over the task of finding affordable group health insurance quotes to their administrative assistants. Often, the assistant is given little advice other than to "find a more affordable group health plan in Texas," or to "shop around and find better rates." This article gives some suggestions that an assistant can use to help find more affordable health insurance coverage without wasting time.
Group health insurance, especially for companies with fifty or less employees is highly regulated and is a very competitive business. In Texas, United Healthcare, Blue Cross Blue Shield of Texas, Aetna and Unicare represent about 80 % of the small group health insurance market. Each of these carriers is financially strong, and has their own extensive PPO network throughout the state.
Other group health insurance companies in Texas will often "rent" another company's PPO healthcare provider network. Some of these other health insurance companies are not as financially strong, with lower AM Best ratings. While many of these other group health insurance companies are good companies, an assistant should be sure to review plans from the top four companies first and should have a good reason why to consider another company's plans.
But if an assistant decides to telephone each insurance company individually, considerable time and effort will be wasted, and their company will not receive any better rates than if they contacted a competent group health insurance broker who represented all or several companies.
And if an administrative assistant does an internet search and applies to an online website and enters their company's contact information and employee information in hopes of getting better rates, all they will get is months of phone calls from agents. The online form they filled out was probably from a lead generation company that will turn around and sell that information to dozens or hundreds of agents who will in turn contact the company and ask for an appointment.
In fact, the very best place for an administrative assistant to look for affordable group health insurance quotes is to interview and select a smart group health insurance broker or multi-line insurance agency who will take the time listen find out what the company needs, and listen to the client. Then they can present a proposal with recommendations for plans and programs that will meet the business needs.
A business will not pay any more or any less for going through a group health insurance broker since the rates are the same whether a business works directly with an insurance company or with a broker. And a broker will be much more responsive to the needs of a company than a big group health insurance carrier, so the assistant's company will get the service and expertise for free.
Since all group health insurance carriers in Texas reserve the right to change the initial rates quoted to a company subject to the underwriting of the individual employee insurance applications, any knowledgeable broker will ask questions about the number of major health claims that employees from the company incurred over the last year. And a good broker will also ask if there are any known employees or dependents with health issues that could affect the final rates. That way, the broker can give the company a better estimate of what the final rates may be even before the applications are submitted to the group health insurance carrier for underwriting approval.
A knowledgeable group health insurance agent will also know which insurance companies have the most affordable rates based on the type of company, the size of the business, and overall age makeup of the company's workforce even before the underwriting process is completed.
A good group health insurance agent is really a trusted advisor to the company, and can save the company hundreds of thousands of dollars as a result of their recommendations and proposals. Examples of programs that can save companies money are Consumer Driven Health Plans like health savings accounts (HSAs) or health reimbursement arrangements (HRAs), and complementary programs like employee wellness plans that can help lower insurance rate increases in future years.
If a group health insurance agent promises to "save the company money" with competitive rates, without knowing anything at all about the company, then the administrative assistant should be skeptical. The agent is likely telling the assistant what they hope to hear in order to win their business.
And any group health insurance agent who "pushes" one company's plans without presenting alternatives may have a hidden agenda. And look out for the group health insurance agent who offers a round of golf, a free lunch, or ticket to sporting events to win a company's business, because they may not not have knowledge and expertise or have the company's best interests at heart.
An assistant should check to see if the group health insurance agent has received specialized employee benefits and consumer driven health plan training, such as a Chartered Benefits Consultant (CBC) professional designation. And before granting an interview, the assistant should have been asked a half hour of time to get the information that they need to come back and present thought out recommendations based on a survey of all of the major carriers in the company's area.
If an agent is reluctant to first with the assistant and to ask questions and expects the assistant to fax employee and company information to provide quotes at the first face to face meeting is not likely to want to meet with the assistant throughout the year and deal with billing or enrollment headaches that inevitably come up.
A broker who will take the time to find out the needs of the company and then returns with a meaningful proposal that helps cover the company's employees at the most affordable rate is the type of agent or agency that an administrative assistant can be assured has the company's best interests at heart.
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For more information about group health insurance plans and employee benefits, and to receive a no-obligation consultation, businesses in Dallas Fort Worth, Texas can contact Mike Chapman at GroupBenfitsAdvisors.com, (888) 398-6246 or (214) 764-6315.
Group Benefits Advisors, an employee benefits consultant and group health insurance agency in Dallas Fort Worth, Texas has a remedy that improves the health of area businesses with less than 500 employees. It is a Corporate Wellness Program for small businesses that is based on a simple truth: Healthy employees are more valuable than unhealthy employees, since healthy employees are more productive and have fewer medical insurance claims.
In a small business, where there is less "bench strength" than in larger businesses, the loss of a key employee can have a huge impact on the firm. And a single large insurance claim can have a major negative impact on the company's group health insurance rates for years to come. Yet small businesses typically do not invest in programs that help improve the health of their employees.
Small businesses make the mistaken assumption that their group health insurance plan helps keep their employees well. In fact, only 4% of our country's health care spending go towards prevention of diseases, and 96% go toward detection and treatment.
The sad fact is that 75% of all diseases are preventable. Employers faced with ever-rising group health insurance premiums can no longer sit back and do nothing to improve the health of their employees. Employers must hold their employees and their dependent spouses accountable for maintaining and improving their own health.
Today, preventable lifestyle diseases are an epidemic. According to the Center for Disease Control, adult diabetes is now the sixth largest cause of death, affecting over 21 million Americans, or about 10% of the adult workforce Diabetes is increasing at a rate of 5% per year. There is about a one in 8 chance that any adult employee or their spouse has diabetes. Diabetes costs businesses over 132 billion dollars a year.
Obesity is the primary cause of diabetes. Over two thirds of Texans are overweight, and almost 25% are obese. Weight loss and exercise programs can control most cases of obesity. Yet such programs are not covered in a group health insurance plan. Weight loss and exercise programs also have positive impact on hypertension and cholesterol, which can contribute to heart failure, stroke, and heart attack and other circulatory diseases.
Tobacco use is still unacceptably high, in spite of being unacceptable in the workplace. Tobacco use causes cancer, emphysema, heart disease and strokes, and eventually death. Yet, not a dollar of an employer's health insurance premium goes towards helping an employee quit smoking or using tobacco.
Group Benefits Advisors' corporate wellness program is a low/no cost program for small businesses in Dallas Fort Worth that is easily to implement and will have a positive impact on their employees' and their spouses' health. The more years that an employer group is on the plan, the healthier their workforce becomes.
The program is paid for by the savings from a slight increase in the annual deductible for employees. Those employees who make changes in their lifestyle (lose weight, exercise, stop smoking, etc.), are "rewarded" with contributions toward their medical expenses; those that don't pay more for their health expenses or make a decision to leave the company. Employees who exercise, lose weight or stop smoking also are reimbursed for the programs after they meet specific goals.
The Corporate Wellness plan puts fairness back in the company's employee benefits plan by making personal health accountability a priority in the workplace. Employees and dependent spouses who make improvements in their overall health actually spend less than they would without the program, as well they should.
Employees and dependent spouses who choose to ignore their own health and that eventually cost their employers more in lost productivity and higher medical insurance premiums end up paying more for their health care expenses in this program. Or they choose to leave the company where their position can assumably be replaced by someone who is willing to be more accountable for their own health.
The plan is non-discriminatory; employees with medical issues that prevent them from participating in the plan are exempted, but are still required to enroll in alternate programs such as a stress reduction program, etc.
Long term studies have shown that adding a corporate wellness program to a compay's employee benefits plan can have a 400% return on each dollar spent. By keeping it inexpensive and simple to implement, now even small employers in Dallas Fort Worth, Texas can benefit from Group Benefits Advisors Corporate Wellness Program.
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For more information about Group Benefits Advisors' Corporate Wellness Program and for a no-obligation employee benefits consultation, email Mike Chapman or call, (214) 764-6315.
Filed under Dallas Fort Worth Group Health Insurance, Employee Benefits Solutions, Employee Wellness, Group Benefits Advisors, Group Health Insurance Quote, Group Health Insurance Rate Texas, Group Health Insurance Texas, Health Insurance: Texas Small Group, Texas Group Health Insurance by on Jun 25th, 2007. Comment.
Group Benefits Advisors often get asked by prospective small business clients how much they should spend on an employee wellness program (sometimes called workplace wellness programs or worksite wellness plans). Our philosophy is that when it comes to all employee benefits, whether group health insurance or an employee wellness program, a small business should spend as little as they possibly can in order to acheive their HR and business goals.
For starters, we suggest that a small business try to look at something we call the employee contribution factor. That is a fancy way of asking how much will each employee produce in terms of revenue, sales production, etc. From there, an employer can usually determine how much they can afford to spend in overall employee benefits such as group health insurance or a employee wellness.
Our experience is that among anything that a small business could spend cash on to attract and retain employees, an employee wellness plan has one of the greatest possible returns on investment. Each dollar spent by an employer for employee wellness will return about four dollars in reduced health insurance premiums, lower absenteeism and higher productivity. And employees save money as well, since they lower their health insurance premiums, and have fewer health care claims and less lost wages due to illess.
Since in a small business, the health insurance premiums are much higher per employee and the cost and risk to the business of the loss of a key employee is much greater than in a big business, the value of a workplace wellness program is actually much greater for a small businesses.
In spite of this, Employee Wellness Plans are very new to small businesses in Dallas Fort Worth, Texas. While there is usually a natural reluctance for a small business to try anything new that costs money, we find that employee wellness plans for small businesses in Texas make great economic sense, and are a great employee relations tool.
The reason that small businesses are still not familiar with employee wellness is that most wellness plans are geared for the needs of big self-funded large employers in the area. These wellness plans offer a virtual smorgasboard of different employee wellness benefits options that an employer can choose from, and require the kind of administrative support and budget that does not exist in small businesses.
Many of the employee wellness plans in Dallas Fort Worth are offered by health care providers like hospital networks or upscale fitness centers in the area who want to extend their services to the big employers in the area, and are not geared to the needs of small businesses.
Group Benefits Advisors offers a small business employee wellness program that is very affordable, easy to understand, and simple to administer. Rather than demanding that a small business choose from a huge menu of wellness benefits, as is the approach taken with big company wellness plans, Group Benefits Advisors' employee wellness plan focuses solely on programs that solve the three most critical lifestyle-related problems facing Texans today: tobacco cessation, weight loss, and exercise.
The health issues of obesity, tobacco and lack of exercise cause the majority of preventable diseases. It is very easy for business owners and employees to accept that employees who don't use tobacco, are not overweight, and are fit are going to be healthier, and more productive employees than those that don't.
Healthy employees also cost a small business less than unhealthy employees. They have fewer medical claims, they show up for work more often and are more productive at work than unhealthy employees. Group Benefits Advisors small business employee wellness plan rewards the employees that choose to live a healthier life, and penalizes employees who choose not to live a healthier life.
Over time, any small business workforce on Group Benefits Advisors' wellness plan will get healthier. And over time, employees and the employer won't get dragged down with higher health insurance premiums, health claims, and lost productivity because those employees who choose not to lower their weight, who continue to use tobacco, or who do not exercise will pay more for their medical benefits or leave the company. But the peer pressure that builds within the company and the rewards system will cause many "unhealthy" employees to reexamine their lifestyle and take action to improve their health.
When implementing Group Benefits Advisors' small business wellness plan, we design a group health insurance plan with a deductible increase for employees and dependents. The wellness plan then "rewards" employees who stop smoking, lose weight, and exercise with an additional HRA contribution that covers the increased deductible to employees. That way those employees who take action to improve their health pay no more than they did before or possibly less, and those employees who do not improve their health pay more or leave the company. Over a fairly short period of time, the workforce is healthier, and employees and the small business owner saves money.
After explaining this to our prospective clients, in a follow-up meeting we show them how any cost for the Group Benefits Advisors' small business employee wellness plan is more than covered by the reduction in group health insurance premiums from the higher deductible plan.
So the monetary and morale benefits derived from a healthier workforce, the lower future health insurance rate increases, and a more productive workforce with lower absenteeism that is derived from Group Benefits Advisors' employee wellness program in fact costs the employer nothing, requires no additional cash outlay on the part of the business, and which is about as close to a legal "infinite return on investment" as small businesses can achieve.
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For more information about Group Benefits Advisors and to request a no-obligation consultation, contact Mike Chapman at
Filed under Dallas Fort Worth Group Health Insurance, Employee Benefits Solutions, Employee Wellness, Group Benefits Advisors, Group Health Insurance Quote, Group Health Insurance Rate Texas, Group Health Insurance Texas, Health Insurance: Texas Small Group, Texas Group Health Insurance by on Jun 21st, 2007. Comment.
If you are a Dallas Fort Worth, Texas area employer, you may be unwittingly rewarding your employee benefits broker or group health insurance broker for poor performance, and for not having your company's best interests at heart.
The average employee benefits and group health insurance inflation in the Dallas Fort Worth area typically increases in cost to employers anywhere from 10 to 15%. A ccording to Texas insurance law covering small group plans, a major illness or accident from a single employee can lead to a rate increase of 67% if the employer tried to change insurance carriers. This makes it financially difficult for a small to mid-size employer (less than 500 employees) to change group health insurance companies.
In effect, a single group major health insurance claim to a small business locks the employer into potentially years of 15% rate increases from their current insurance company, as this is the maximum allowable annual rate increase according to Texas small group insurance law.
Any employee benefits consultant and group health insurance broker in Dallas, Texas should be rewarded for cost containment, not cost inflation. Yet, as the rates increase for a small company group health plan, the broker's commssion income is increased. The larger the annual rate increase, the more the group health insurance broker earns on the employer's business.
What is the incentive for a group health insurance broker to work on the client's behalf to contain benefits inflation when good advice limits their income? And more importantly, what steps can a good employee benefits consulant or group health insurance agency be doing for their clients to contain group health insurance rate inflation?
First, a good group medical insurance broker should be a year-round valued advisor to the CFO as well as the VP of HR or owner. If the employer only sees their group health insurance agent at annual renewal time, then the employer is not likely to get advice on strategies and methods to reduce employee health insurance claims.
Second, a quality employee benefits consultant should advise throughout the year how the employer can enact strategies that encourage employee behavior that reduces medical claims, and therefore lower rate increases. Consumer driven health plans, such as health reimbursement arrangements (HRAs), health savings accounts (HSAs) and medical expense reimbursement plans (MERPs) motivate employees financially to reduce their health insurance claims, and offer various tax savings to the employer and the employee.
Third, a really proactive group health insurance broker can also advise the employer how to incorporate an employee wellness plan that encourages and rewards employees for healthy lifestyles.
A corporate wellness plan sponsored by the employer, if properly structured, can help at-risk employees lose weight, leading to a reduction in obesity and related diseases such as diabetes, heart attack, high blood pressure and stroke. An employee wellness plan can also encourage employees to quit smoking, which can lead to a direct reduction in cancer and heart/stroke disease.
The return on investment to the employer for a company wellness plan that specifically targets weight loss through diet and exercise, and smoking cessation, is tremendous. A dollar spent by the employer in a well-designed employee wellness plan can yield five to six dollars in saving to the employer in terms of a reduction in future medical claims, medical insurance increases, and lost productivity, plus a reduction in future pain, suffering and mortality among employees.
As a knowledgeable employee benefits consultant and group health insurance broker, Group Benefits Advisors advise our clients throughut the year how to control the costs of employee benefits, without a reduction in the level of benefits offered to employees. For more information and for advice about other ways that Dallas, Fort Worth, TX employers can control the cost of employee benefits, contact Mike Chapman, (214) 764-6315, extension 120, or (888) 398-6246 toll free.
Filed under Consumer Driven Health Plans, Contact Group Benefits Advisors, Dallas Fort Worth Group Health Insurance, Employee Benefits Solutions, Group Benefits Advisors, Group Health Insurance Quote, Group Health Insurance Rate Texas, Group Health Insurance Texas, Health Insurance: Texas Small Group, Texas Group Health Insurance by on May 5th, 2007. Comment.