Understanding the truth about employee benefits can unlock savings, improve retention, and strengthen your company culture.

Most business owners know that offering health insurance is important—but misconceptions about health insurance can lead to costly decisions and missed opportunities. Here are five of the most common health insurance myths—and the facts that dispel those myths and help your business save money and offer better benefits.

Myth 1: “Offering health insurance is too expensive for small businesses.”

Reality: It’s true that premiums can be a significant expense, but there are more affordable options than many realize. From level-funded and self-funded plans to tax credits and subsidies, small businesses have tools to manage costs effectively.

Smart Strategy: Working with an experienced benefits consultant like RMC Group can help you explore custom options that align with your budget and employee needs—without sacrificing coverage.

Myth 2: “Employees care more about salary than benefits.”

Reality: While salary matters, employees consistently rank health insurance as one of the most valued workplace benefits. In fact, many are willing to trade higher pay for comprehensive coverage that offers security and peace of mind.

Smart Strategy: A strong benefits package improves morale, retention, and even productivity. Don’t let outdated assumptions limit your recruiting edge.

Myth 3: “Hiring only healthy employees will keep premiums down.”

Reality: Insurance rates are driven by age, industry, and location—not individual health conditions. Trying to game the system by screening for “healthy” employees not only doesn't work—it’s unethical, unsustainable and probably illegal.

Smart Strategy: Offer comprehensive health and wellness programs that promote overall employee well-being. The healthier and happier your team is, the more stable your costs will be.

Myth 4: “You can’t switch health plans mid-year.”

Reality: Switching providers is possible—even outside of open enrollment—if it’s done correctly. The key is to ensure continuous coverage and clear communication.

Smart Strategy: Renewal season is the perfect time to evaluate your current plan, compare options, and potentially find better rates or coverage. However, don’t be afraid to ask your broker tough questions or shop around even outside of your renewal window.

Myth 5: “Self-funded plans are always more expensive.”

Reality: Self-funded or level-funded plans can offer 8–10% average savings by cutting out insurance carrier margins and providing more control over plan design.

Smart Strategy: These plans aren't just for large companies anymore. With the right guidance, even smaller businesses can benefit from tailored, flexible funding solutions.

At RMC Group, we specialize in helping businesses navigate their employee benefits with clarity and confidence. We don’t believe in one-size-fits-all solutions—instead, we dig into what matters most to your team and your bottom line.

We’ll help you:

• Compare funding options like level-funded and self-insured
• Analyze claims and usage to optimize your plan design
• Benchmark your coverage against industry standards
• Streamline your employee communication and onboarding process with paperless solutions
• Stay compliant with ACA regulations and plan updates

Don’t Renew Blindly—Renew Strategically

Before your next renewal, ask yourself:

• What’s really driving our plan costs?
• Are we using the best model for our company size?
• Are our employees actually happy with our benefits?

Start the conversation early. Survey your team. And don’t settle for less than a plan that works for you. Contact RMC Group today to speak with a licensed Health Insurance Professional at 239-298-8210 or schedule a meeting here.