As we have been talking to Indy business owners over the past few months, they have been noting a new hiring trend in employee recruitment. Pre-pandemic, the gig economy was going strong with young workers looking for a big paycheck and flexibility. Post-pandemic, employers are now finding potential employees want more stability and health benefits – and they will not be hired without them.
Businesses with over 20 employees who have relied on independent contractors to fill hiring gaps are now finding that employee pool drying up. Hence why they are reaching out to us to help them offer health benefits. The Wharton & Power Team has been helping businesses find affordable, high-quality employee health insurance for nearly 30 years. While there are many options out there, two in particular are well-designed for the over 20 market:
PEO
A Professional Employer Organization, or PEO, offers small to medium-sized businesses the opportunity to offer employee health benefits similar to large organizations. By joining one pooled group plan, they can take advantage of the economies of scale enjoyed by much larger organizations. For example, Worksmart Systems, an Indiana-based PEO, offers a self-funded plan offering four options, with 9,500 participants. They partner with Anthem, whose expansive network in Indiana offers greater discounts leading to more cost savings for the business and its employees. Worksmart allows smaller organizations to offer employees a menu of benefits like a Fortune 500 company.
Partially Self-Funded Plans
Another option for mid-sized employers is a partially self-funded plan, where they take on some of the risk associated with the cost of employee health coverage in exchange for a lower premium. Part of the employer’s monthly payment is placed into a fund to cover expected claims, which are processed by the insurance company. Those premiums also cover stop-gap catastrophic event insurance in case an employee has a large, unexpected health event. These plans also offer co-pays, HSAs, wellness programs, etc.
Employers with a young, healthy workforce can benefit from the lower cost of a partially self-funded plan. Also, there is an incentive to offer wellness programs and rewards to help keep expensive claims from popping up. The idea is to save on employee health costs while they can.
There are pros and cons to both of these options, and our Team can help you weigh them to uncover the best plan for your situation. Send us an email or give us a call at 317-663-4138.
