For many health insurance advisors, the world of limited-benefit health plans is considered foreign territory. Questions about administration, implementation and return-on-investment are common. Many advisors find themselves asking "is offering a limited-benefit health plan worth my client's time and energy?"
The answer is — if you're offering the right plan to the right client — definitely. A good limited-benefit health plan should provide maximum value to its members and require minimal time and effort from the employer.
Recruit, retain and reap the rewards
The value of a limited-benefit plan lies in its ability to cover common day-to-day medical expenses (things like office visits and antibiotics) with a reasonable amount of coverage for unexpected illnesses and accidents. A good limited-benefit plan helps an employee offset the cost of routine medical care and plan for ongoing health expenses — at an affordable price.
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Access to everyday medical care and wellness benefits ensures healthier and happier workers — improving productivity while decreasing turnover. As workforce levels continue to decline it is more important than ever to keep people healthy and on the job. Retaining the best employees is vital. Your client's implementation of a limited-benefit health plan will lead to less absenteeism and presenteeism from insured workers.
So what does it cost the employer to improve recruitment, retention, productivity and employee health? More often than not, nothing. Many limited-benefit plans require little or no contribution from the employer, with plans starting at just an hour or two of an employee's weekly pay. The biggest investment required is spending time to select the correct plan for employees and the minimal effort to implement.
Clients with a large percentage of high-turnover, hourly employees, both full and part-time, will see the greatest rewards. This includes industries such as hospitality, retail, restaurant, construction and manufacturing. These industries are often deemed headaches by many brokers, but they are satisfied customers of limited-benefit health plans. Even staffing firms are implementing limited-benefit health plans to attract higher quality workers. CIGNA HealthCare research estimates that over one million people are currently covered by limited-benefit plans, from Fortune 500 businesses to mom-and-pop shops.
The satisfaction with limited-benefit health plans in these industries originates from offering a plan of true value to their employees. It's not enough to simply look at premium, benefits, or networks individually. The strength and true value of a plan lies in how all three work together to provide the greatest benefit to the employee.
It is worthwhile to note that with an established record of success across perceived 'hard-to-reach' industries, the limited-benefit market continues to grow.
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