Offering Multiple Health Insurance Plans - Handelman Insurance Advisors, Inc.

We encourage you to offer more than one group health insurance plan design to your employees, which will provide the following advantages:

• Each employee will be allowed to decide for themselves which plan is right for them, which will increase employee satisfaction.
  

• Sponsoring a lower cost "base" plan will save money for your company and for your employees. A percentage of your employees will choose this lower-cost approach, and this will reduce premiums accordingly.
  

Offering more than one plan design will allow you to structure your premium contribution policy in a number of different ways:

• Employer can sponsor some or all of a lower cost plan's premium, and if an employee wants to use the higher priced plan- they would pay the difference in premium.
  
• Employer can sponsor some or all of employee premiums, and if an employee wishes to insure their dependents- they can do that at their own expense. You can offer to sponsor some of the dependent costs if you wish.
  
• Employer can sponsor a flat percentage (less than 100%) on any of the various plans being offered, which would encourage the employees to consider the premiums in addition to the plan provisions. By choosing a lower-cost plan, both the employees & your organization would reduce their premium expense. But the higher the percentage of premiums you pay, the more likely an employee will be to elect a richer (and higher price) plan.
  
• Employer can offer to sponsor up to a specific maximum monthly insurance allowance for each employee, and allow each person to determine which plans to use (can including medical, dental, vision etc.) and which dependents to insure. If their premiums fall within the monthly allowance- they pay nothing! Any costs above that insurance allowance would be the responsibility of the employee.
  
• If set up properly, employee contributions can be paid with pre-tax income). This would reduce the employee's net cost & likely save your organization money too. We can also help you set this up properly.