Why a flexible plan is right for you and your employees, and how it can enrich employee satisfaction and retention
For small and big organizations
Employee Satisfaction and Retention
Flexible wellness plans are great for smaller companies since regular benefits packages can get pretty expensive for smaller teams. You can also tier your plan to single, couple, family, and other dependents so that the plans cater better to each of your employees.
For larger companies or companies that already have a group benefits plan, flexible wellness plans are a great way to support your employees’ health and wellness even further. Traditional benefits plans are often limited in coverage and are focused on reactive, illness-oriented aspects of insurance. With these innovative plans, employees receive a plan that is centered around preventative measures to enrich their health and wellness.
There are also customizations that companies can make to the plan to maximize the benefits of this type of plan.
- Pay As You Go – Only pay for the amount that is actually used, rather than paying upfront
- Tiered Plans – Choose whether to tier the spending account to single, couple, and family
- Carryover – Choose whether remaining balances are carried over into the new year
- Distribution – Choose when the funds are released to employees, and how often
- Flexible Use – Set limitations to what employees can claim under the account
- Tax Write-Offs – Use the spending account to write-off health expenses under taxes
Pay As You Go
Unlike regular group benefits plans where you have to pay upfront, flexible wellness plans work in a pay-as-you-go fashion, where you only cover the portion that was actually utilized by your employees. Most of the time, employees end up utilizing 70% of their plan, which means you would be saving 30% that they don’t use.
As an employer, you can configure the approved list of items that employees can claim under the wellness spending account, to be as broad or as specific as you’d like.
Carryover and Distribution
You have the option to choose whether remaining balances can be carried over or if it resets every year. You can also decide whether employees can access the full amount, or if it is divided into monthly, quarterly, or any number of installments throughout the year.
If you are a small business, flexible wellness plans can often be cheaper and better option, since you can write off health expenses as tax write-offs for the company.