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December 16, 2004
Texas Employers Can Now Offer Access to Health Insurance Without Increased Benefits Cost.
Many employers do not have the financial resources to offer group health insurance to their employees. Approximately one half of the Texas workforce does not have access to health insurance through their employer.
Traditional group insurance coverage, where the employer pays part or all of the health insurance premium, simply is not an option for all but the most profitable and well funded employers. Most companies who do offer group coverage often change providers or reduce coverage on a fairly regular basis in an attempt to control the rising premium costs.
Fortunately for those companies who would like to offer access to health insurance or have been forced to reduce benefits or cancel insurance programs outright, there is another choice.
A recent development is the ability to offer access to affordable health insurance without the employer paying any of the premium. A licensed health insurance planner conducts an informational meeting at the workplace, then meets with interested employees individually to discuss their needs. Each employee can choose the level of coverage that is best for them and their family, and the premiums are deducted from the emplyees paycheck so the employer can forward the premium payments to the insurance company.
If there are more than five employees participating in the program, additional tax savings are available to both the employees and the employer. Under Section 125 of the Internal Revenue Code, the employee's premiums can be paid with pre-tax dollars. This reduces the employee's taxable income, so the taxes withheld are lower. The employer also benefits with lower payroll taxes.
This is a great way for an employer to offer the most requested benefit without increasing costs. It is easier to attract and retain good employees, increases employee satisfaction and productivity, and can reduce payroll taxes for the employer.
Because the insurance policies are individually owned, there are many advantages. The employee can keep the coverage if they leave the company. Premiums won't increase just because someone at work has a lot of claims. Costs won't increase for the company since the employees pay 100% of their own premium.
It is now possible for Texas employers of any size to provide access to the most requested employee benefit, affordable health insurance. Further information is available at http://www.voluntaryworkbenefits.com
Posted by Tom Troceen