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Traditional Benefit Packages

Overview

In 2014 when people think of Group Insurance Benefits or Traditional Benefit packages, the great insurance companies like Great West Life, Manulife, Sun Life and others, come to mind almost immediately. Large insurance companies have been the traditional “benefits providers” for decades. People almost automatically think insurance when they think of benefits.

In the last 30 years, financial services consolidation has reduced the number of insurance companies offering benefits from over 100 to less than 15. This still does give choices, but not all of the remaining companies can provide the services businesses and individuals need and want today. Other, alternative benefits providers, have entered the marketplace to fill today’s needs for flexibility, efficiency and control.

Have you ever thought of benefits rather as a form of “compensation”?

Benefits are changing. Many progressive companies today look at “benefits” as part of the overall compensation package. There will be some insurance elements involved for the high risk items and employee options on re-imbursement items; referred to as high volume, low risk items. Technologies now allow the smallest of companies to employ big company strategies.

The Accidental Expense Situation

Many traditional companies use a 20% co–insurance factor with their drug and health benefits. It’s a method often used to encourage employee participation in cost controls and abuse. What happens when an employee or family member has a major specialty drug requirement costing $20,000 per year? At a 20% co insurance factor, that employee is now faced with an additional $4000 a year drug expense they were not counting on. It’s paid with after tax money. The employer will see large price increases on the renewal package. This was not intended, yet it happens regularly. There is a much better way.

Why not help yourself a bit and click here. Answer for yourself. A few short questions will indicate to you whether you should be using Traditional Benefits or the Traditional Benefits of the Future?

 

By 2020, this will be a typical Traditional Benefits Package •	Funding to allow discretionary spending for employees for drug, dental or medical needs.  Tax deductible to the employer and tax free to the employee. •	Catastrophic loss benefits to pay those unexpected medical costs that can financially devastate a family. The company’s bottom line is protected as well. •	Life insurance and critical illness coverage for employees and their dependents. •	Employee Assistance Programs for consultation by employees and their families in matters dealing with medical, emotional, financial, and/or any legal situations. •	Wellness Programs offering assistance with lifestyle and social problems such as smoking, weight issues, and ever increasing addictive issues relative to over use of our many technical devices by all family members. •	Flex Time that allows hours to accumulate rather than paid for extra time, for future time off.  Time off in the future may include weeks and months at a time. •	Things we haven’t even thought of yet in 2014. These types of programs are already in the workplace, when are you getting started?