Insurance companies have been pulling the wool over our eyes. They’ve done a great job of promoting health benefits as the only way to cover the costs of prescription drugs, dental check-ups, and paramedical services like physio or massage.
That’s also convinced organizations they must provide extended health benefits in order to compete for talent. Job seekers are going to ask about the benefits package. Whether it covers their healthcare costs is often at the top of their list.
But how much value does insured health and dental coverage really provide? Is this really the best way to compensate your team? How do you create a fair benefits plan?
A story of perceived value
Here’s an example of where insured health and dental coverage seemed like a great idea, but the dollars didn’t quite add up.
A healthy young man was excited to take advantage of massage benefits from his new employer. He paid 25% of the healthcare premiums and his employer paid the rest. Seems like a great deal, right?
The employee paid $1,125 per year for his share of his healthcare premiums.
What would he have paid for a year’s worth of massages? Only $720…
When you add in his employer’s portion of premiums, this employee gave up $4,500 in compensation for only $720 worth of massages!
Sure, he would have claimed other health and dental expenses over the year, but unless he claimed $4,500, he still wasn’t breaking even on his benefits.
How do you get real value?
Imagine a benefits plan where instead of paying premiums (and throwing your money down a black hole), you give each plan member this part of their compensation so they can use it for the healthcare expenses that are most important to them.
It’s not a dream! With a blended benefits plan organizations can be in complete control of their expenses, while giving plan members the full value of their contributions.
Ready to learn more? Our Growth Team is standing by, so get in touch!
