Practice Management Insurance: A Necessary Evil (Part III)

Insurance: A Necessary Evil (Part III)

By: Joe Strunk, Owner/CEO of 3000 Insurance Group Capturing and Retaining Employees with Employee Benefits Insurance has always been part of protecting your assets. As a small business owner, your greatest assets are your employees. Attracting and retaining employees is key to a successful business. Outside of salary, the greatest way to attract and retain employees is by providing employee benefits. When it comes to Employee Benefits (insurance) employees look at the following (in this order): • Health • Dental (obviously most ODA members can supply these benefits outside of insurance) • Vision • Life • Disability Let’s talk health insurance since it is the most expensive and most desired. As an employer, you can offer health insurance to your employees in a couple of ways. The most common is an employer sponsored plan which is commonly referred to as group health insurance.

What does an employee value in their group health insurance?

(common rules are below) • Zero or low cost to them • Co-pays for office visits and Rx • Lower out of pocket expense • Network of providers *Employer HSA contributions fall somewhere in the middle if the employer offers this.

What are some of the main criteria for offering small “Group” Health Insurance (common rules are below)?

• 1-50 employees based in Oklahoma • Participation - 75% of eligible employees must enroll in the plan. (Eligible employees are full time and don’t have insurance elsewhere.)

• Example – A dental practice has six full-time employees. One is insured on her spouse’s insurance. One has Indian health insurance. That leaves four eligible employees. At least three of them must enroll in the group health insurance, which makes the participation at least 75%. • Contribution – Employer must pay at least 50% of the lowest cost plan offered. Usually, a dental practice will offer 1-3 plans. The employer must pay at least 50% of the least expensive plan. What is a Special Enrollment Period (SEP)? Since the Affordable Care Act was fully enacted in 2014, there has been a Special Enrollment Period effective each January 1st. This Special Enrollment Period must be approved by Blue Cross & Blue Shield each year. It allows a small employer to offer group health insurance effective January 1st WITHOUT the participation and contribution requirements shown earlier. However, the employers that want to

offer group health insurance under the SEP must apply between 11/15 and 12/15 for a 1/1 effective date. If you apply after 12/15

you will not be able to apply under the SEP. Life/Vision/Disability – These benefits are often inexpensive and sometimes VERY valued by employees. The enrollment requirements are very similar to the group health insurance. However, sometimes these products can be offered on a voluntary basis which does not cost the dental practice any money BUT provides a valuable benefit to the employees.

Practice Tip:

• Consider offering group benefits to your employees:

They cost less than constantly hiring and training new employees.

The less turnover a dental practice has, the more successful the practice will be. • Offer 2-3 plans. Choose plan(s) with a low-cost network since that is the least important benefit to the employee. Choose at least one plan with Office and Rx Co-pays. An additional plan might be a High Deductible Health Plan (HDHP), commonly referred to as a Health Savings Account (HSA) plan. • If this is your first time to offer group insurance, consider applying during the SEP (11/15 – 12/15) for a 1/1/23 effective date. This way you will not have to worry as much about participation and employer contribution. Do not miss the next article, Insurance: A Necessary Evil Part IV, where we will discuss “Professional tips on all types of insurance”.

ABOUT THE AUTHOR:

Joe Strunk, owner/CEO of 3000 Insurance Group, started in insurance in 1997. He has an engineering degree from Oklahoma State University and an MBA from the University of Oklahoma. Joe has served as the President of the Independent Insurance Association of Oklahoma and holds designations as a Certified Insurance Counselor, Certified Advisor of Personal Insurance, and Certified Risk Manager. With over 25 years of experience, Joe specializes in working with professional associations and small businesses to satisfy their Property, Casualty, Life, and Health insurance needs.

3000 Insurance Group, an ODA Rewards Partner, is independently owned and locally operated to handle your insurance needs. We offer affordable and reliable insurance choices across Oklahoma. We help you find the right combination of tailored, personalized insurance coverage at just the right price to fit your needs.