When an employer hires an employee, they enter contractual obligation. Yes, a wage will be provided for duties as outlined being completed. In that, taxes must be filed, registration and paperwork but be adhered to. The contract is the promise by each party to participate and only with active participation from both sides will the contract obligations be fulfilled.
By the same token, when a company enters into a benefit arrangement with a provider, there are contracts completed with each side agreeing to participate. The employer agrees to pay premiums and the provider agrees to pay claims as they arise.
In this same contract is the understanding all active, eligible employees will participate.
In implementing such a plan, the employer therefore makes a promise to their biggest asset—their employees – to invest in the wellbeing, the stability of these workers, to ensure their investment into their company will be successful.
A benefit plan can comprise many different elements from life insurance and disability to health, dental, wellness and flex accounts. What matters though is the promise of participation from all parties to ensure coverage is there when it is needed:
Catastrophic – for those unforeseen circumstances resulting in a risk of loss of life, risk of loss of income and risk of a catastrophic event. These elements are pooled to ensure the risk is spread amongst the masses.
Bricks of coverage – for those day to day needs of health, professional paramedical services, and basic dental claims.
The Mortar – providing choice of coverage for employees. These flexible health spending accounts fill in the gaps of coverage between existing benefits, and spousal coverage to top-up coverage where it is needed most. This may be for items such as orthodontic, vision care, holistic remedies.
As in all things benefit, first consider what “promise” do you want to make to the employees regarding their coverage – what is the goal – then set to work creating a plan. A well thought out, well designed benefit plan will always be seen as a strategic element to the overall business platform of the company, creating long-term success, fulfilling the promise.
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