Why You Can’t Afford Not to Offer Health Benefits to Your Employees

Rising health care costs, and changes in the health care system due to the Affordable Care Act (ACA) have many wondering if employers will keep offering employer-based health benefits to employees. According to Larry Boress, President and CEO of the Midwest Business Group on Health, the answer is yes.

Boress believes benefits serve multiple purposes other than providing health care to employees. He argues that providing employees with health benefits allows companies to recruit talent and ensure workers have the ability, health-wise, to perform well on the job.

Related Post: Why Insurance Rates Are So High and How to Start Cutting Them

Health care benefits are the second-highest expense for companies after payroll. In order to offset costs, he suggests companies have some of the following options:

  • identify disease and health problems early on
  • focus on prevention and management of chronic conditions
  • have employees pay higher deductibles and co-pays for care
  • consider using private health insurance exchanges
  • provide direct health programs and services to employees

Even with the high costs associated with benefits, companies continue to consider providing benefits a necessary expense and an investment in their employees’ health. Moving forward, businesses will need to come up with cost-saving strategies related to their health-care benefits.

Related Post: How Employer-Paid Benefits Affect Your Bottom Line

“At the end of the day, dropping health care coverage is not an option, especially for employers who are focused on the health and productivity of their workforce,” argues Boress. “Regardless of a company’s size, in a global marketplace, a business can’t afford to lose its most important assets – its people.”

Please read the entire article by Larry Boress here.

ClaimLinx is dedicated to providing its clients with the best possible benefit solutions that are compliant with the Affordable Care Act.

Please contact us to learn more.

What is a Medical Expense Reimbursement Plan (MERP)?

One of the first differences members notice with the ClaimLinx solution is that they now have two cards to show at the doctor instead of one. This is because ClaimLinx uses a medical expense reimbursement plan (MERP).

Related Post: ClaimLinx Glossary: Common Health Insurance Terms

MERP is the key to the ClaimLinx Solution for providing more cost-effective health insurance.

The medical expense reimbursement plan, a Section 105 plan of the tax code, is any arrangement under which a business reimburses an employee for out-of-pocket medical expenses. And all of these reimbursements are paid to the employee 100% tax free.

ClaimLinx uses the MERP to lower insurance costs but still cover employees’ qualified medical expenses.

Related Post: Why did my employer purchase a MERP?

Normally if a business reduces medical insurance coverage to lower premiums without adding a MERP, the expense shifts from employer to employee. The MERP allows for employees to receive the same coverage while employers save money.

If you have questions about your plan, email service@claimlinx.com or call 513.677.6262.

Defined Contribution Health Plans

Tom Quigley, National Business Consultant, provides consulting services, and is in charge of recruitment and new business for ClaimLinx.

Today he’s discussing Defined Contribution Health Plans and how they can be utilized to save a company and its employees thousands in tax dollars.

Related Post: What is an employer-sponsored, or self-funded, plan?

There is no reason to buy a traditional group health insurance plan as of January 1, 2014.  If you would like to attract & retain good employees by offering health benefits without the high cost & requirements of Group Health Plans, then Defined Contribution Health Plans are a good solution. Employees choose their own health plans with the carrier and coverage that work best for them, and pay for it with tax-free dollars. Using a private exchange online portal, it’s easy to set up.

You can now add extra revenue to your bottom line by going to our healthcare exchange to learn more; or contact Tom Quigley.

ClaimLinx is proactively ready for the many changes of Health Care Reform.  Our Health Care Exchange has its own call center to enroll individuals in the many policies that are available to them. Please visit the site for more information.

Related Post: What is the difference between primary and secondary coverage?

ClaimLinx is positioning its clients to move in the right direction.  We can structure benefits in their favor to ensure they are in full compliance with the law without cutting benefits or employees.  Feel free to contact Tom at tquigley@claimlinx.com or (800)858-1772 X 25 with your questions. Look for our new book, “How to Beat Obamacare” to be released later this year.