For Businesses

Collaborative Advisors, Customized Benefits

Group benefit planning involves a deep understanding of your business. Advisors tailor recommendations to fit your organization’s structure, goals, and unique needs, presenting a benefit plan that best meets your requirements.

They provide a range of carefully curated product options, explaining subtle differences to help you make informed decisions. This collaborative approach ensures your benefit program is comprehensive and aligned with your organization’s objectives.

By understanding the nuances of each option, you can confidently select products that best support your business and employees. Advisors guide you through the process, offering expertise and support at every step, empowering you to make decisions that positively impact your organization’s well-being.

Choosing the Right Plan

Selecting the right benefit plan is paramount for both employer and employee satisfaction. Understanding the nuances between Health Spending Accounts (HSA) and insured benefits, as well as the distinctions between Claims Rating and Pooled Benefits, is crucial. While HSAs offer flexibility and control, insured benefits provide comprehensive coverage. Similarly, Claims Rating allows for tailored pricing based on individual claims history with the risk of runaway claims, whereas Pooled Benefits spread risk across a larger group to create stability. Ultimately, these factors affect the foundation when designing a benefit program that resonates with employees ensures engagement and satisfaction, fostering a healthier and more productive workforce and is stable over the long term.

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Benefit programs are planned in 5 steps.

Understanding Your Business Needs

Every business is unique, shaped by factors such as industry, demographics, team composition, and overarching goals. In order to create a benefits program that aligns with your specific business needs, it is essential for an advisor to take the times to have a understanding of your organization.

By gaining insight into the intricacies of your business, an advisor can effectively tailor and plan a group benefits program that is suited to your company’s unique circumstances. This includes considerations such as industry norms, the demographics of your workforce, and the long-term goals of your organization.

With a understanding of your business, an advisor can identify the most relevant and beneficial coverage options, ensuring that your group benefits program not only meets your current needs but also aligns with your future aspirations.

Choosing your Plan Structure Claims rated or Pooled Benefits

Insurance policies typically operate on a term basis, with rates set for a specific period. At the end of this term, rates are reviewed to ensure the stability of the insurance plan in order to continue paying claims into the future. This process is commonly known as a renewal.

However, what many may not be aware of is that in group benefits, there are different methods of calculating these renewals. Two main approaches are commonly utilized: claims-rated and pooled benefit methods.

The claims-rated approach involves setting renewal rates based on the actual claims experience of the group. This means that rates may fluctuate significantly based on the group’s specific claims history. In contrast, the pooled benefit approach involves spreading the risk across the entire pool of insured members.

Choosing between these methods can have major implications for your group benefits plan. While the claims-rated approach offers potential cost savings for groups with favorable claims experience, it also exposes them to the risk of much higher premiums in the event of increased claims. On the other hand, the pooled benefit approach provides stability and predictability in rates, as the risk is spread across a larger pool of insured members.

It’s essential for businesses to carefully consider their options and select the renewal method that best aligns with their risk tolerance, financial objectives, and overall business needs.

Choosing your Program Cost Structures

When budgeting for a group benefit program, it’s important to recognize that these plans are typically designed to be a shared expense between employers and employees. This shared responsibility is often structured based on a percentage split, commonly 50-50.

However, cost sharing can also be achieved through alternative methods, such as a defined dollar amount for each employee, such as $200 per employee, or by selecting specific benefit products where the employer only covers certain benefits, such as health and dental.

When setting a budget for your group benefit program, the focus should be on understanding and delineating the costs for the business and the costs for the employees separately. This means setting the business budget to cover the business’s portion of the expenses, rather than viewing it as an overall shared cost.

Choosing between these methods can have significant implications for your group benefits plan. While the claims-rated approach offers potential cost savings for groups with favorable claims experience, it also exposes them to the risk of higher premiums in the event of increased claims. On the other hand, the pooled benefit approach provides stability and predictability in rates, as the risk is spread across a larger pool of insured members.

It’s essential for businesses to carefully consider their options and select the renewal method that best aligns with their risk tolerance, financial objectives, and overall business needs.

Designing a Benefit Plan Aligned to Your Business

Your advisor will consider your perspective, including renewal calculations, budget, and the makeup of your team as provided by you. Drawing upon their expertise and understanding of the industry, they will craft a tailored benefit plan that aligns with your organization’s unique needs and goals, as well as your long-term strategic objectives. This will result in the development of a benefits plan and program specifically tailored to your business.

Review Your Tailored Benefit Proposals

Once your advisor has compiled all the necessary information, they will present you with a comprehensive benefit plan proposal. This proposal will encompass insurance products specifically chosen based on your requirements and those commonly provided by businesses similar to yours. Your advisor will meticulously select these products to ensure they effectively address your unique needs, while also adhering to industry standards and best practices.

Your advisor may provide more than one proposal, as there could be similar products or providers that fit your business’s needs. They will outline these subtle differences, although the list will be short as the advisor has filtered the options to only those that best suit your business.

During the presentation, your advisor will provide a clear explanation of each product included in the benefits program. They will outline the purpose of each product and how it benefits both the organization and its employees. Additionally, your advisor will highlight any limitations associated with the products, such as annual limits or formularies, to ensure transparency.

By understanding the specifics of each product and its impact on employees, you can make informed decisions about the benefits program for your organization. Your advisor will be available to address any questions or concerns you may have and will work closely with you to refine the product offering until it fully aligns with your needs and objectives.