Improve your employee benefits – and pay less!
If you have fewer than 10 employees, you’re almost guaranteed to pay too much for a traditional employee benefits plan. A Health Spending Account will save you money, while also providing employee benefits your staff will actually use.
What is a Health Spending Account?
A Health Spending Account, similar to a Lifestyle Spending Account, is a self-insured, private health spending plan that can be used as standalone coverage for employee health or dental expenses or to supplement a traditional employee benefits plan. There’s no maximum number of employees, and the minimum number is just one employee (or sole proprietor).
How does a Health Spending Account work?
You contribute up to a predetermined amount per employee to your Health Spending Account, from which your employees can be reimbursed for a wide array of health-related expenses. You determine how much you’d like your employees to have access to, and you only pay for the expenses your employees actually claim.
With a Health Spending Account:
- You control the premium
- Each employee chooses his or her own plan
- No quotes
- No medical underwriting
- You pay only for what you use
Health Spending Accounts vs. Traditional Employee Benefits Plans
Let’s look at traditional employee benefits plans for a moment. You pay a fixed premium every month, regardless of usage. Chances are, you’re paying for benefits that are rarely, if ever, claimed. Each year at renewal time, your premiums go up to the tune of 10-15% on average – as do your agent’s commissions.
With a Health Spending Account, you only pay for the benefits your employees use, up to a maximum value that you determine. Your employees can use that benefit for whatever health expenses they like, such as orthodontics, paramedical, prescriptions or even vision. They can even use their Health Spending Account to purchase a personal health benefits plan if they so choose.
Why have you never heard of a Health Spending Account?
Because, quite simply, insurance brokers make less money on them.
So why do we promote them so strongly? Because we don’t work for the insurance companies; we work for you. We’d rather have 10 small-business clients who are excited about their plan and are getting great value for their money than one client who’s paying a fortune in premiums for benefits they don’t use.
Contact us today to find out if a Health Spending Account makes sense for your group.