In my last article, I touched on the idea that job seekers and employees have a far greater appreciation for the value of a solid benefits package than ever before. Since many people who are actively seeking employment have worked as contractors, business owners or in companies where benefits are not available, they have been faced with the daunting prospect of covering health insurance costs out-of-pocket.
 
This has led to a widespread recognition that benefits plans have a significant, positive impact on the compensation an employee receives each year. In fact, people are even taking lower paying jobs if there are good benefits plans available. 
 
The truth is that even a solid benefits plan will usually only pay for about 80 percent of health care costs after all of the copays and deductibles are met. It’s unfortunate that a lot of people don’t realize their plans will not cover 100 percent of their health care costs, but unless they have had health problems in the past or work in a company that offers supplemental benefits, how would they know?
 
Considering the spiraling costs of medical care, many of the nation’s top employers are realizing that supplemental benefits plans can be a highly effective means of recruiting and retaining employees. This is partly due to the growing recognition among job seekers and employees about the ways in which supplemental benefits can be a lifeline for their finances if they are faced with an adverse event.
 
There is absolutely no cost for an employer to implement a supplemental benefits plan through a provider such as Allstate, so it’s always surprising for me to learn that there are still companies out there that do not provide this type of offering for their employees.
 
The strength of this argument is reinforced by the fact that every pre-tax dollar a person spends on supplemental benefits represents an annual savings of 7.65 percent to the employer, as well as the employee. After learning that the monthly costs for some of the higher-end policies at Allstate average about $40 per month, it’s easy to see why these plans are popular among employees. 
 
According to Andy Hester, a neutral third-party provider of insurance services and one of my independent strategic partners, “The supplemental benefits plans offered through Allstate are not only portable but also the most cost-effective option in the industry, so we prefer to sell their products. Simply put, there’s a reason they have the highest market share in the nation for supplemental benefit providers.”
 
My belief is that many organizations resist supplemental benefits packages as a result of the idea that the implementation will require a significant outlay of costs in terms of time and effort among their employees. Fortunately, Hester leads a substantial enrollment team that works hand-in-hand with organizations to help reduce the administrative costs of implementation.
 
For a consultation about how Supplemental Benefit Plans can increase employee buy-in, participation and thereby add to your company’s bottom line, please contact me at the number below.
 
Will Brown is the owner of the Will Brown Insurance Agency LLC, and represents Allstate Insurance Company. Brown and his staff offer property, casualty, health and life insurance, as well as personal financial services and Allstate Benefits, one of the nation’s leading voluntary benefit plans. The Will Brown Insurance Agency has a comprehensive protection and investment product portfolio, with a strong commitment to serving families and small businesses in an advisory role. Will Brown may be reached at (910) 599-9071, or by email at [email protected]. To learn more about the Will Brown Insurance Agency, click here.