RJA - Business Insurance

Written by Andrew Krane, RJ Ahmann Company, October 26, 2012

The employee benefits landscape has been evolving over the past 10 years. Commonly referred to as worksite benefits, voluntary benefit products such as voluntary life insurance have been available for quite some time. These benefits are a convenience to employees, as they are sold to individuals in the workplace as part of their total benefits packages. Pricing of the products is competitive, since they are rated on group rates and the premiums are paid on a payroll deduction basis.

In the last several years, employee benefit insurance programs have been gaining more traction. No longer just another option for employees, the process of providing these benefits is an opportunity for an employer to reinforce the core benefits program and educate the employee on the products they already have purchased. The process allows employees to elect additional coverages that fit their unique needs. Many employers are opting for employee choice in the benefit plan selection process.

What products can be included in a worksite benefits program?

The products that can be purchased in the worksite benefit environment have evolved over recent years, mostly due to the popularity of consumer driven health plans. Many products have been designed to help fill the gaps of these high-deductible health plans, and most are health-savings account compatible.

Voluntary benefits that can be purchased by employees on a worksite platform may include:

• accident insurance
• cancer insurance
• dental insurance
• disability insurance
• gap policies
• voluntary life insurance
• prepaid dental plans
• prepaid legal plans
• pet insurance
• vision plans

The availability of products may vary based on state filings and individual company offerings. While there are many options to choose from, we normally recommend starting with just two or three options to make it more manageable for employees.

What are the benefits of an employee benefits program?

There are many advantages to group benefit solutions. The plans are supported by employee benefits services and relatively easy for employers to administer. The insurance company and its enrollment team will assist with pre-enrollment communication materials. The enrollment materials can be personalized for each employee.

There are two options for enrollment in the plans.

• The group enrollment option is led by trained benefit counselors from the enrollment company. This is the option most employers are familiar with.
• The other option is for the employer to elect the ?one-on-one? program, where the benefit counselor meets individually with each employee, presenting on a laptop computer. The one-on-one method allows, in a private setting, core enrollment of all benefits offered. The counselor may also provide a summary of products purchased by and for the employee. Many providers can offer a total compensation statement to the employee at the end of the session.

The voluntary benefits need about a four-week planning window before enrollment can take place. Many employers opt to offer these benefits at different times than that for core benefit plan enrollment, to avoid having the voluntary benefits being overshadowed by core medical, dental, and other employer-paid benefit plans.

Final thoughts on worksite benefits

Worksite plan offerings continue to grow in popularity in today?s marketplace. As a result of rising medical plan costs, many employers have needed to trim medical plan and core benefit programs to reduce costs. Worksite benefits allow employers to fill those gaps cost effectively enhancing employee satisfaction with benefit programs. As always, an employer is advised to work with an experienced employee benefits consultant in establishing a worksite benefits plan.

Andrew Krane has over 25 years of experience consulting with employers on their employee benefits programs and providing employee benefits insurance coverage to meet their needs. Mr. Krane currently serves as the Employee Benefits Practice Leader for RJ Ahmann Company, a regional insurance broker headquartered in Minneapolis.

Source: http://www.rja.com/Business_Insurance/employee-benefit-plans/

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