Employee Benefits??

Question

We are looking at provding benefits for our employees.
We only have 4 employees.We don't want the best just a something to kind of make employees what to work for us and stay because we care about them and treat them well
Just wondering what company to go with (blue cross manulife sunlife) I am sure there's lots more but I want the best for our Dollar)which would be be for the employer and employee ?
We live In Canada so keep that in mind when answering

Answer 1

I am not from your area so can't give an honest referral of what insurance company to go with. But, what I can give, as an employee of a small business owner, is this: If at all possible, offer your employees full benefits, i.e., medical, dental, and vision. Along with that, offer them dependent benefits, or at least give them a break of sorts if they have to pay a portion. I have been with my small company for 10 years and am being forced as of late to move on because, honestly, my insurance stinks...I have a $1,000 deductible and have to pay $400 a month for my family benefits. I don't have vision or dental for me/my family either. All the companies I have been looking at lately are bigger, and can offer these plans at no cost for my whole family. So, needless to say I have been applying. If it is meant to be, I know the change will come, but it has been nice working where I have been all these years, ya know? Just a thought...Prayers =)

Answer 2

In the US health care costs are a hot button. On the one hand employers are trying to educate the employees on the wise and practical use of benefits, in an attempt to, at least, slow down the rising costs. Many have been forced to require active employees to share the costs, while others have eliminated health care benefits for retirees.

On the other hand, employees, who have been conditioned to view health care as a "free, and expected benefit" from a benevolent employer, have been shocked of late when asked to become co-partners (albeit minor partners) by contributing to the health plan. At that point the employer became an ogre.

In Canada, with its socialized medicine, most, if not all health care problems are taken care of by clinics. The only problems I have heard is that there is a waiting line for everything from getting an appointment to seeing a doctor (who may or may not be the one you saw previously), to arranging for non-life threatening surgery.

On the other hand, I assume that there are "private practice" health care providers, who operate practices outside of the mainstream, who are not compensated by the "system", but who rely on "private insurance" to cover the costs. I am assuming that that is where you want to go.

Having said all of the above, let me make some recommendations.

First, most of the insurance carriers operate pretty much the same. The differences are in customer service - availability of representatives to answer questions, on-time payment of bills, so that employees don't get demand letters from the providers, and helpful correspondance/ pamphlets/ quarterly magazines offering advice on a variety of health concerns, from dieting and excercise to the dangers of smoking, from preventing stress to knowing the dangers of high cholestrol.

Second: Do not offer employees a full plate - medical, dental, vision without knowing the cost increases over the last 3- 5 years.
Start out with a basic plan, a "catostrophic care plan" It is better to introduce "improvements" in the future, than to be forced to reduce benefits, and/or increase employee contributions because costs have been out of control.

Third: Remember the higher the deductible the lower the premiums (consider CN$ 700 (single), CN$ 1400 (family). In addition, since you have a small group, the "experience" rating could send your costs into the stratosphere. Negotiate an "industry" or "community" based rate to protect yourself from the effect of one of your employees having a catostrophic injury or illness which will be reflected in the premiums for the following year.

Fourth: Introduce cost-sharing at the time the plan is introduced - CN$ 5.00/mo. (Single); CN$ 7.50 (Family) - it'll prevent bad feelings, and resultant lower morale in the future. (For those employees who do not use the plan in a particular year, their contributions could be returned.)

Finally, as in all business dealings - shop around, ask questions, talk to competitors/ vendors/ customers who have experience with medical insurance carriers - be prepared. The more you know, the more likely you will develop a plan that meets the needs of the employees as well as the Accountant.