Author Box
Articles Categories
All Categories
Articles Resources

Why Voluntary Benefits Work for Your Company As Health Care Cost Continue to Rise

December 21, 2011 | Comments: 0 | Views: 141

These past few years, many small business employers have passed on the rising cost of health insurance to their employees by increasing deductibles and co-payments, and in some cases, smaller employers have dropped their health coverage all together. With the economic times changing, how does the future look for health care cost? Mercer, a human resources consulting firm, predicts that employee health care costs will rise 5.4% in 2012.

Health care costs continue to rise faster than inflation. The average cost of a family plan rose 3% from 2009 to 2010, but workers' contributions to family health coverage jumped 14% as employers attempted to control costs, according to a report by the Kaiser Family Foundation.

With these staggering statistics, what can you do to control health insurance benefits cost and keep key employees happy with your benefits offerings?

Small business owners and their employees are finding a more helpful option to manage rising health care expenses. This option is voluntary insurance benefits. These benefits normally add no additional cost to the employer, and might reduce corporate taxes by cutting FICA tax contributions. In addition, the adding of voluntary benefits plans to a company's benefits menu helps small businesses enhance their benefits choices while staying within budget or cost constraints.

What is Voluntary Insurance Benefits?

Voluntary insurance benefits can vary from dental, pet insurance, critical illness, supplemental health, accident or hospital indemnity, life insurance, vision and short-term disability. Some of these benefits, if not all, help employees manage out-of-pocket costs associated with serious accidents and illness costs that major medical insurance is not designed to cover. Recipients of these voluntary benefits plans receive cash benefits in the event of an accident or illness. The benefits can be used to help pay for daily living expenses, such as the mortgage payments, child care, groceries, rent and other medical expenses that may be acquired during the time the insured is out of work.

Traditional medical insurance plans do not cover every expense related to an illness, injury or death. The bills and expenses continue to add up, especially if you have stopped working and your income is lost. Voluntary insurance can help you prepare for these and other out-of-pocket expenses. Most of all, these plans help remove the worry of how you will pay your medical and other everyday living expenses.

With the rising, cost of health insurance many small businesses have to cut back on their major medical insurance coverage. With voluntary insurance benefits, employers can now offer a cost-effective supplement to their primary benefits that will be vital to their company and their employees.

Jonathan Askew has an extensive knowledge of the ever-changing insurance industry. Jonathan Askew offers Colonial Life Voluntary Benefits for Businesses. By gaining a complete understanding of your company's specific insurance needs, he can best develop solutions to meet your situation.

Because of this commitment to excellence on behalf of you, "success is defined from your terms, not ours". Our sense of customer satisfaction, and solution-driven actions work to help you retain more employees and keep what you have worked so hard to earn.

Jonathan Askew 410-456-5356

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Voluntary Insurance Benefits


Voluntary Benefits


Small Business Employee Benefits

Auto insurance is probably one of the most expensive insurance types in Canada. An average car insurance policy in Canada costs approximately $1,200 per year and in Ontario, the largest Canadian

By: Alex Saltykov l Insurance > Car Auto l July 09, 2013 lViews: 553

Your house is often your largest investment that you need to protect via insurance. We created a list of multiple savings tips related to Home insurance and hope that these will help you to save a

By: Alex Saltykov l Insurance > Home Owners Renters l December 27, 2012 lViews: 380

Most auto insurance companies design specific car insurance policies for classic and antique cars. If you think you have a classic car and want classic car insurance, you will need to be sure that

By: Richard l Insurance > Car Auto l October 17, 2012 lViews: 570

Business Overhead Expense Insurance Plans can provide cash flow to the business in the event of a disability to a key employee or owner. For a small, growing company it might make the difference

By: T. Spencer White l Insurance > Disability l July 17, 2012 lViews: 243

Workers compensation costs are rising. According to a recent report by the Workers Compensation Research Institute (WCRI), indemnity costs per claim (the loss of earning capacity, payments for lost

By: Kelly C. Williams l Insurance > Workers Compensation l July 08, 2012 lViews: 221

One of the most helpful government programs out there is the SSI Disability program. A person that is legitimately disabled, and cannot work to provide an income for themselves for their family

By: Oleg Winter-Burnett l Insurance > Disability l July 04, 2012 lViews: 282

Liability insurance protects service-providing businesses and individuals from damages awarded in a civil lawsuit due to claims of negligence. In the US, such insurance is usually called errors and

By: Ria D Siatonl Insurance > Supplementall April 09, 2012 lViews: 145

Rising healthcare costs for services, rising healthcare premiums leave employers scrambling for solutions. An option available for the last 70 plus years becomes an essential component in solving

By: Terryl G Roemerl Insurance > Supplementall April 04, 2012 lViews: 128

Do you want to have some form of life insurance? The problem with getting a policy is that you don't know exactly how much you will be spending on it. Read on for tips on how to save money AND get an

By: William De Guzmanl Insurance > Supplementall April 02, 2012 lViews: 137

General liability policies provide coverage for specific obligations, such as bodily injury. When businesses and individuals are legally liable, however, they're often exposed to many additional

By: Ria D Siatonl Insurance > Supplementall March 26, 2012 lViews: 139

Many seniors enroll in a standard plan F Medicare supplement plan without much thought. The majority do not look at the Plan F high deductible Medicare supplement as an option. Those that take the

By: Edward K Crowel Insurance > Supplementall March 12, 2012 lViews: 139

The best time to search for Medicare supplement quotes is right before the open enrollment period for Medigap. Every year private insurance companies revise their Medicare Supplement quote, so it is

By: M. James Dickensl Insurance > Supplementall March 09, 2012 lViews: 131