Finding the Benefit Sweet Spot

The sweet spot is the point at which all the factors involved combine to give you the best result. It’s a term that originated in sports, in reference to how to maximize results in terms of speed and control, but sweet spot is just as applicable to the world of workplace healthcare benefits.

Benefit Cost-Cutting

For the past decade, employers’ focus has been on lessening the impact of benefit costs with cost-shifting strategies:

Talent's In Control

Seeking change, employees are resigning in huge numbers — and those unhappy with their benefits have other options:

There are 10.1 million jobs open in the U.S.,
a record high.¹

3.9 million employees quit their jobs in June 2021.²

Missing The Mark

Seeking change, employees are resigning in huge numbers — and those unhappy with their benefits have other options:

Flexible benefits can help employers meet emerging needs in an uncertain world which can make the difference when retaining key talent and recruiting new, productive employees.

But so often, employers miss the mark on what type of benefits employees want and need—and what type of benefits will be best for the company.

OVER HALF (55%)

of employees say that HEALTH INSURANCE is the most important benefit in terms of their job satisfaction.

And the right type of health insurance that supports employees in all four key areas:

The Sweet Spot

Managing healthcare benefit costs by reducing coverage is a way of life for employers these days. At the same time, there is a direct correlation between healthcare benefits and recruiting and retaining talent.

This is where complementary health insurance plans† come in. Here are three ways that can help employers find the benefits sweet spot:

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Give employees the type of benefits they want: better healthcare coverage.

Some of the advantages of these plans include differentiating from competitors and offering year-long rewards (unlike a one-and-done bonus).

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Improve healthcare coverage without breaking the bank.

With complementary health insurance plans, the company can deduct the premium without incurring payroll taxes and fees. So, it’s actually less expensive than putting the same amount of money in payroll or a bonus.

Diamons

Provide an innovative benefit that acts as a compensation booster.

This is because complementary health insurance plans include coverage for routine and unexpected out-of-pocket healthcare expenses that they would otherwise pay for with after-tax income. Instead, with complementary health insurance plans, an employee receives claims payment on a tax-efficient* basis and can get more money in their pocket compared to a taxable salary increase.

* This is not local, state or federal tax advice as each person and each company is unique. It is recommended that you seek the independent counsel of a professional tax adviser.

† The above referenced supplemental health insurance policies have exclusions, limitations and benefits that vary by plan and state. To obtain a quote or for more details on coverage, contact ArmadaCare.

‡ 105(h) allows premiums to be tax deductible for employer and benefits to be non-taxable for employees. This is not local, state or federal tax advice as each person and company is unique. It is recommended that you seek the independent counsel of a professional tax adviser.

Coverage provided by Transamerica Premier Life Insurance Company and Sirius America Insurance Company.