Fear of high deductible plans frighten many employees and employers. This is especially true of small companies. But consumer driven health plans (CDHPs) are the best opportunity for a small employer to give employees high quality health insurance and still see a real cost savings.
CDHPs come in both individual and group models. These plans can save as much as 30% or more over the cost of the more traditional HMO or PPO. Both the employer and the employee can contribute to the HSA of the employee. When the employer contributes a portion of the deductible amount into the employees HSA, the employee has the comfort of knowing that he has the money to pay for medical services that occur before the deductible is met.
How much the employer will contribute may depend on how much savings the employer realized in switching his plan to a CDHP. There are many different options all of which can and should be tailored to the needs of both the employer and employee.
Making it as easy as possible is key to employee satisfaction. The employee's contribution to the HSA can be set up to be payroll deducted and completely trouble free. Most plans allow the employees to manage their HSA accounts on line from the privacy of their own homes. The tax benefits of the HSA apply even if the employee spends all the money in the account that year.
Education of the employees is the most important ingredient in achieving employee satisfaction. Always consult with an expert agent to make sure you and your employees are getting the best plan to meet your specific needs. Most of the insurance companies are now offering HSA options. Make sure you speak with someone who know which company will suit your needs best and can communicate well with your employees.
About the Author:
Sheila Guilloton is a licensed health insurance specialist. She works with individuals and small business owners in 9 states, assisting them in finding the best health and dental insurance coverage. Contact her at
planners@sbcglobal.net. She is also the National Health Care Examiner for Examiner.com. Follow her articles at
http://www.examiner.com/x-11804-Health-Care-Examiner
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144
Date Published :
Nov 4 2009