With the cost of employee benefits rising, smaller employers can struggle to offer meaningful benefits packages. SMBs have less bargaining power with health insurers and often lack a dedicated HR professional to manage employee benefit packages. As a result, only 39% of organizations with 3-9 employees and 67% of organizations with 10-199 workers offer health benefits, according to data from the Kaiser Family Foundation.

On top of increasing premiums and deductibles for both businesses and employees, group health plans often fail to acknowledge the individual. Traditional employee benefits aren't entirely inclusive and leave little flexibility or personalization for employees' unique needs. The Kaiser Family Foundation also reports that 75% of employers with fewer than 200 employees only offer one health plan. Yet, factors such as gender, age, preferred health care provider, and location all influence what benefits an employee values.

When an employer selects the group insurance plan, employees have no say in important aspects such as the network they will be part of, the deductible they must meet, or the premium they must pay. Some employees even require supplemental health insurance to compensate for coverage gaps not included in their company's plan, making the overall health benefit less comprehensive. A PeopleKeep survey found that 65% of employees said they value being able to choose their own benefits, but only 36% feel they have a say at their current company.