Great Lakes Wire

As a small business, offering an attractive employee benefits package is crucial for hiring and retaining talented employees. Balancing health insurance offerings without overwhelming the budget can be challenging. It's essential to assess and adjust approaches as the business and healthcare market evolve. Various strategies and solutions are available to assist in this process.

Healthcare strategies for small business employers include comparing different health insurance plans with an insurance agent, considering different types of plans such as Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), or High-Deductible Health Plan (HDHP). Employees opting for HDHPs can contribute to a Health Savings Account (HSA), which offers tax-deductible contributions and tax-free withdrawals for qualified medical expenses.

Small businesses can also use Qualified Small Employer HRA (QSEHRA) to reimburse employees for medical expenses, including individual health insurance premiums, tax-free. Premium sharing allows employees to share in the cost of their monthly premium with pre-tax dollars through payroll. Utilizing preventive care services covered by most health plans at no additional cost helps catch potential health issues early, avoiding more costly treatments later. Virtual visits covered by many health plans can reduce overall medical expenses by providing cost-effective alternatives to in-person visits for minor issues.

Providing resources and education helps employees understand their options and choose the most cost-effective plan for their circumstances.

SBAM connects its members with expert partner resources to keep them updated with regulatory changes and provide a selection of insurance, compliance, and human resource products and services. Among these resources are composite rating options that offer a single premium rate for all group members instead of individual rates based on age, gender, and other factors.

Consumer-directed health plans allow both employers and employees to save through tax-preferred methods like Flexible Spending Accounts (FSA), Health Savings Accounts (HSA), and Health Reimbursement Arrangements (HRA). SBAM's Member Care Service Team handles billing and enrollment for sponsored insurance coverage through an internal team based in Lansing. They manage employee enrollment changes, billing questions, new business paperwork, life and disability claims through the online SBAM Service Portal.

COBRA administration is managed by SBAM's Member Care team which sends necessary letters, provides monthly activity reports, online account access, and collects premium payments from COBRA-enrolled beneficiaries for $35 per month.

The Pooled Employer Retirement Plan (PEP) offered by SBAM is cost-effective and outsources administration to reduce fiduciary risk. Start-up plans may qualify for up to $5,000 in tax credits covering administrative fees over three years with an additional $500 annual credit when establishing a retirement plan with automatic enrollment.

SBAM also provides free Summary Plan Descriptions (SPD), affordable drug screening & background checks solutions, customized employee handbooks to manage relations effectively, access to HR legal expertise via Ask An Expert service, wellness programs promoting employee health and productivity, as well as various educational programs enhancing job performance.

Kellie Neirynck emphasizes that "by being creative and thoughtful about the benefits offered," small businesses can create competitive packages meeting employee needs while easing financial burdens through trusted partners like SBAM.

For more information visit www.sbam.org/member-benefits or contact the Member Care Team via email or call 877-949-7226.

By Kellie Neirynck; originally published in SBAM’s September/October 2024 issue of FOCUS magazine

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