Offering health benefits can be a pivotal step for your business. Not only does it help attract and retain top talent, but it also nurtures a healthier, more productive workforce. Providing health benefits demonstrates your commitment to employee well-being and can set your business apart as a desirable place to work.

We’ve created a guide to help you navigate the process and make informed decisions about offering health benefits to your employees. In this article, you will learn about benefits to your business beyond retaining employees, who you need to consult, and actionable steps to get started today.

STEP 1

Understand That Providing Health Benefits to Your Employees Goes Beyond Attracting and Retaining Employees

It’s important to create a comprehensive package that sets your business apart from the competition because employee health benefits are crucial for attracting top talent and retaining valued employees.

According to Forbes, 67% of employees and 68% of employers ranked employer-provided healthcare as the most important benefit in 2024, maintaining its status as the most sought-after perk year after year.

Tax Advantages

While health benefits can help an employer attract and retain the right employees, offering health benefits can also have tax advantages for you as the business owner and for your employees depending on the type of health plans you offer.

Providing health benefits allows employers to deduct premiums paid for group health insurance as a business expense. Employers may also benefit from reduced payroll taxes as the employer’s payment of premiums for health insurance are not considered wages and are not subject to payroll taxes. Offering these benefits can ultimately lower the overall tax burden for your business while supporting your employees’ well-being.

Investing in employee health benefits is a win-win—it supports your team, enhances recruitment and retention, and offers financial perks for your company.

STEP 2

Consult with Professionals to Design the Right Type of Benefits

When it comes to offering employee health benefits, having the right team of experts by your side can make all the difference. Three key professionals—insurance brokers, benefits consultants, and legal counsel—can provide invaluable guidance and support, helping you navigate the complexities of designing and maintaining a benefits program.

• Insurance Brokers and Benefits Consultants are your go-to experts for comparing plans and funding solutions, negotiating rates, and guiding you through the selection process. Working together with their in-depth knowledge of the insurance market allows them to identify the most cost-effective and comprehensive options tailored to your business needs. With their help, you can confidently choose a plan that balances affordability with employee satisfaction. They take a more holistic approach by designing comprehensive benefits packages that go beyond basic health insurance. They assess your company's unique needs, employee demographics, and budget to create a customized plan that includes offerings like dental, vision, retirement options, and wellness programs. A well-rounded benefits package not only attracts top talent but also fosters employee loyalty and engagement.
• Legal Counsel ensures your benefits program complies with federal and state laws governing employee health benefits, such as the Affordable Care Act (ACA), ERISA, and HIPAA. With their expertise, you can avoid costly penalties and protect your business from potential legal challenges. They also help you stay informed about changes in regulations that could impact your benefits offerings. Most benefits firms provide in-house compliance.

By leveraging the expertise of these professionals, you can build a robust employee benefits program that supports your team, meets compliance requirements, and positions your business as a competitive employer in your industry.

STEP 3

Consider These Things Before Starting to Offer Health Benefits to Your Employees

There are many things to consider when getting started. Designing the right health benefits plan for your employees involves careful planning and strategic decision-making. Here are key factors to consider to ensure that your benefits program aligns with both employee needs and your business goals:

1. Assess Employee Needs
   Begin by evaluating your workforce's demographics. Are your employees mostly younger and seeking preventive care, or do you have a mix of generations with more diverse healthcare requirements? Understanding their priorities—such as family coverage or access to specialized care—will help you select a plan that truly meets their needs and enhances satisfaction. Consider an employee survey to assess the needs of your employees.
2. Choose the Right Plan
   With countless options available, it’s crucial to compare plans based on coverage, deductibles, copays, and network offerings. Consider what level of coverage your employees are likely to use and balance that against your budget. A high-deductible plan paired with a Health Savings Account (HSA) may work for some companies, while others might find better value in traditional PPO or HMO plans. Comparing these factors ensures you choose a plan that provides both value and peace of mind.
3. Set Contribution Levels
   Determine how much of the premium costs your business will cover and what portion employees will contribute. While covering a larger share can make your benefits package more attractive, finding the right balance is key to managing costs. Keep in mind that generous employer contributions often result in higher employee retention. Your Benefits Consultant can model the employer/employee contributions for you each year to ensure you are in budget.
4. Review Provider Access
   One of the most significant factors for employees is whether their preferred doctors and facilities are included in the plan’s offering. Verify that the options you’re considering include a robust network of providers, particularly those near your workplace. A strong provider network increases employee satisfaction and reduces the likelihood of your employees having to seek care outside the plan’s network, which can lead to unexpected costs. Many of today's more innovative programs are less about a defined network and more about quality/cost effective care allowing the member to choose any provider. 
5. Consider Additional Benefits
   Enhancing your health benefits package with supplementary offerings such as dental, vision, life, and disability coverage can set your business apart. These additional benefits address broader wellness needs and show employees that you value their overall health and well-being. Options like telehealth services or wellness incentives can also be cost-effective ways to enhance your plan. Employers are often surprised that they can offer these with very limited participation and no employer contribution required.
6. Start a Section 125 Plan
   A Section 125 plan, which RMC Group can establish at a low cost of around $100 to ensure compliance, allows employers to offer benefits on a pre-tax basis. This reduces employees' taxable income, providing tax savings for both the employer and employees. 

By considering these factors, you can design a health benefits program that not only meets your employees’ needs but also supports your company’s long-term growth and success. A well-rounded benefits package is an investment in your team—and your business’s future.

STEP 4

How to Start the Process

There are a few things you need to get the process started.

1. Contact a Benefits Consultant. At RMC Group, our Benefits Consultants will be able to help you assess your company's unique needs with an employee survey, help you gather employee demographics with a census, and budget to create a customized plan that includes offerings like dental, vision, retirement options, and wellness programs. Click here for a sample employee census template to start gathering information today.
2. Budget and Plan. Choose the health plan options and network that best fit your team's needs, balancing comprehensive coverage with affordability. Then, decide how much of the premium costs your business will cover and how much employees will contribute.
3. Create a Timeline. The timeframe from quoting to going live with your plan will be about 30 to 60 days. This timeline will need to include an open enrollment period for your employees to select their health plans and coverage options. So, keep that in mind when getting started and create a timeline that works best for you and your business.

By following this guide, you can build a competitive benefits program that not only meets legal requirements but also supports your employees' health and well-being. A robust benefits package can improve employee satisfaction, boost retention, and enhance your reputation as an employer of choice.

For more information, reach out to RMC Group. Visit our website at rmcgp.com/health-and-benefits or call us at 239-298-8210 to speak with one of our experienced health professionals.

If you are ready to get a personalized approach to your healthcare started now, schedule a meeting here.

Let us help you navigate the process and create a benefits package that aligns with your business goals.