You want to offer your employees excellent benefits. However, it would be even better if the benefits came with some perks for you – namely, lower costs. You can choose a Michigan employee benefits plan that boost your bottom line directly, or you can consider other ways to invest in the well-being of your workers.
Expected and Unexpected Ways to Cut Costs on Michigan Employee Benefits
Here are just four ways to save money on Michigan employee benefits:
- Choose level-funded health insurance. When you choose a level-funded health insurance plan – also known as partial self-funding – expenses are evenly spread over 12 months. The cost of group health insurance is a predictable expense and stop-gap coverage takes care of any overage claims. If the premium paid into your fund goes unused by the end of the year, your business gets a refund.
- Choose self-funded employee health insurance. There is a built-in risk for companies that choose self-funded employee health insurance plans. However, being willing to take the risk could open you up for major financial rewards. Over time, a self-funded plan is a money-saving group insurance plan. If you overbudget for claims, you’ll have a surplus of funds that can be rolled back into your health plan.
- Invest in the health of your employees. When group health insurance premiums are based on a broad sample of people as with traditional group policies, costs can feel unfair and make you rethink the benefit of benefits at all. But a level-funded plan, for example, evaluates a company’s unique employee risk pool. This specificity can lower risks and create lower-priced plans. If you invest in your employees, offering on-site wellness classes, gym memberships, healthy meal programs, or other incentives, you encourage and support their good health and, ideally, contribute to greater productivity and fewer sick days.
- Outsource plan management. You can assign the management of group benefits responsibilities to an existing human resources employee, which may feel like the best way to save on benefits costs. However, outsourcing the ongoing maintenance of group benefits to an expert who understands compliance, operational needs, and the complicated ins and outs of group insurance management will save your in-house team members from encountering a steep learning curve, making errors, or offering up incorrect advice – all issues that could, ultimately, cost you big money.
Get Help Determining Group Employee Benefits
Find out exactly how your individual company can save money. Get connected with a personal plan advisor at The Benefits Group. We will pair you with the right insurance carrier, and help you identify the best employee benefits for your company based on the needs of your employees, the benefits you want, and the costs you would like to minimize.
Contact us today to get connected with a dedicated employee benefits expert. We will analyze your business needs, answer all your questions, and offer advice about the best ways to maximize your Michigan employee benefits so your choices are beneficial for your employees, and you.