Insurance is like a mysterious puzzle we all try to solve. We pay those premiums, crossing our fingers and hoping we never have to use it. But when it comes to health and dental insurance, the odds are stacked against us. Those check-ups and dental visits are inevitable - you can't escape them!
The Insurance Conundrum
You see, insurance is designed for those rare, catastrophic events that we pray never happen, the kind that makes you exclaim, "What are the odds?" The insurance company sits back, hoping you'll never need to call them. And in return, you keep paying those premiums, year after year, just in case.
Health and Dental Costs: Frequent Flyers
Unlike the elusive, once-in-a-lifetime calamities insurance loves to cover, health and dental costs are like clockwork - they happen regularly and predictably. So, when insurance companies try to insure these everyday expenses, they've got to find a way to recoup their dough. And guess who's left holding the bag? That's right, it's you, dear premium payers!
The Never-Ending Premium Hike
It's an unfortunate truth - when health and dental benefits are insured, those premiums just keep going up and up. It's like they're competing in a never-ending marathon race, except there's no finish line in sight. Once in a wild blue moon, they may decide to give your wallet a break and lower those pesky premiums.
Enter the Heroic Blended Benefit Plans
But fear not, for there is a glimmer of hope in the realm of benefits - instead of paying for benefits you never even get to use, these plans are all about reality - the actual claims, plus a modest admin fee. Here are the two main types:
Enhanced Health Blends (EHB)
Here's how it works: You, the wise plan sponsor, get to set up service limits in any way you please. You pay for the actual claims, while leaving the heavy lifting to the insurance wizards (or as we call them, the plan administrators). It's just like an insured plan, but without the premium shenanigans!
Health Spending Accounts (HSAs)
The Superheroes of Flexibility. Imagine a bank account tailor-made for each plan member - that's what HSAs bring to the table. You get to set your budget and contribute funds for each team member, which, by the way, are tax-deductible for your business.
But wait, it gets even better! Your superhero team members can use their HSA funds for any eligible medical expenses that tickle their fancy. Whether it's dental checkups, relaxing massages, or prescriptions to battle the office flu, they've got the power to choose.
Remember, insurance might be great for safeguarding against those "knock-on-wood" events, but when it comes to the everyday stuff, a well-designed benefits plan empower them with more control, and shows them you are a boss that worth sticking around for.
*Information provided here is based on material provided by Blendable. Insurance Kit and those associated with the information on this website are not professional accountants, unless specified otherwise. Please always seek the advice of a professional accountant prior to making any tax or benefits related decisions.