Industry Insights

Managing employee benefits today isn’t just about selecting the right plans—it’s about how efficiently those benefits are delivered, communicated, and tracked. That’s where HR Information Systems (HRIS) come in. If you’re still juggling spreadsheets, manual forms, or disconnected software, chances are you’re wasting valuable time, increasing your risk of compliance issues, and frustrating your employees in the process. But a modern HRIS can transform how your company handles benefits administration—boosting efficiency, improving employee satisfaction, and ultimately making HR work smarter, not harder. Let’s walk through what an HRIS actually does, why it matters for benefits administration, and how your business can get started with a system that scales with you. What Is an HRIS and Why Should You Care? An HR Information System is a digital solution that helps businesses manage everything from payroll to performance reviews. But when it comes to benefits administration, it’s a game changer. Instead of scattered records and one-too-many email chains, an HRIS centralizes all your employee benefits data in one place. That means no more guesswork about who’s enrolled, what their coverage includes, or whether you’re on track with open enrollment. And because everything’s automated, HR teams are free to focus on strategy—not data entry. Key Ways an HRIS Streamlines Benefits Administration 1. Automates the Repetitive Stuff Manual tasks like enrolling employees in benefit plans, updating deductions, and generating reports can eat up hours of time. An HRIS automates these processes, making sure nothing slips through the cracks. You’ll have fewer errors and a whole lot less stress. 2. Gives Employees More Control Your employees don’t want to call HR every time they move, need to add a dependent, or check their benefits summary. A self-service HRIS portal lets them handle it on their own—anytime, from anywhere. That’s a win for them and a huge time-saver for your team. 3. Centralizes All Benefit-Related Data An HRIS keeps everything in one place—plan details, enrollment history, eligibility tracking, and more. This means better accuracy, real-time updates, and easier access when you need to audit or make plan changes. 4. Keeps You Compliant Compliance can be a minefield, especially when regulations are always changing. With an HRIS, you can build automated workflows that flag missing documentation, track COBRA requirements, and generate reports for ACA and other mandates—helping you stay compliant with minimal manual oversight. 5. Supports Better Decision-Making Modern HRIS platforms offer powerful reporting and analytics. You’ll get real-time insights into benefit utilization, enrollment trends, and participation rates, helping you make smarter choices about plan offerings and provider negotiations. Beyond Benefits: More Perks of Using an HRIS While the focus here is on benefits, HRIS tools touch almost every part of the employee experience. From streamlining onboarding to simplifying PTO tracking, performance reviews, and compensation planning—it’s a full-scale HR transformation. Here are a few more things an HRIS can help with: Smoother onboarding with automated forms and workflows Less paperwork (and fewer manual errors) Better talent management, including appraisals and training tracking Scalability as your company grows Cost savings from operational efficiency Ready to Modernize Your Benefits Administration? Here’s the bottom line: if you’re still managing benefits the old-fashioned way, it’s costing you time, money, and goodwill with your employees. A well-implemented HRIS brings everything into one place, gives your team back their time, and gives your employees the access and transparency they expect. At KBI Benefits , we help businesses like yours choose and implement the right HRIS solution—customized to fit your needs, goals, and growth plans. Whether you're just starting to explore your options or ready to make the switch, our experts are here to guide you every step of the way. Ready to streamline your benefits admin and boost employee satisfaction? Contact KBI Benefits today to get started with an HRIS platform that actually works for your business.

When it comes to choosing the right health insurance plan for your employees, the decision often boils down to two primary options: HMO (Health Maintenance Organization) and PPO (Preferred Provider Organization). Each plan type offers distinct advantages and potential drawbacks—both for your team’s health and your company’s bottom line. Understanding these differences is critical to designing a benefits package that promotes well-being while managing costs effectively. What is an HMO Plan? HMO plans are a form of managed care designed to offer affordable coverage through a streamlined network. They typically require employees to select a primary care physician (PCP) who coordinates all aspects of care, including specialist referrals and pre-approvals for certain procedures. Key features of HMO plans include: Lower premiums and out-of-pocket costs compared to other plan types. A specialized network of participating providers. A greater emphasis on coordinated care through a PCP. This structure can be highly beneficial for businesses looking to control costs while still providing access to quality care. For employees who don’t mind having a designated doctor and following referral protocols, HMOs offer a cost-effective option. HMO Networks and Costs HMO networks are often more limited, but they come with reduced medical costs. Providers in the network agree to offer services at lower rates, helping keep insurance premiums low. Some HMO plans come with no deductible, which can be attractive to employees managing routine healthcare needs. However, it’s important to note that if employees seek care outside of the network (except in emergencies), they’ll bear 100% of the cost. Role of the Primary Care Physician (PCP) A central aspect of HMO plans is the role of the PCP. This physician becomes the employee’s primary point of contact for healthcare needs, from routine checkups to coordinating specialist visits. Requiring referrals and pre-approvals helps prevent unnecessary procedures and controls spending—both key benefits for employers managing group plan expenses. Pros and Cons of HMO Plans Advantages: Lower premiums and minimal out-of-pocket costs. Efficient, centralized care management. Preventive care emphasis reduces long-term costs. Disadvantages: Limited choice of providers. Referrals required for most specialist visits. No coverage for out-of-network non-emergency care. What is a PPO Plan? PPO plans offer a more flexible structure, appealing to employees who want broader access to healthcare providers without needing referrals. While more expensive than HMOs, PPOs grant the freedom to see specialists or out-of-network doctors without jumping through administrative hoops. Core elements of PPO plans: Larger provider network with fewer restrictions. Partial coverage for out-of-network services. No need for a designated PCP or referrals. This model works well for companies seeking to attract a geographically diverse workforce who need provider flexibility. PPO Plan Features and Costs While PPOs offer generous access to care, they come with higher premiums and deductibles—especially for services received outside the network. Employees typically must submit claims themselves for out-of-network visits, and separate deductibles apply. That said, emergency care is always covered, regardless of network status, which provides a safety net for unexpected situations. Making the Right Choice for Your Business Choosing between an HMO and PPO plan depends on your company’s goals, employee preferences, and budget. If your workforce prefers structure and you want to keep premiums low, an HMO may be the better fit. On the other hand, if your team values provider choice and flexibility—even at a higher cost—a PPO could offer the competitive edge you need to retain top talent. For many businesses, a combination of both plan types might be the best solution, giving employees the ability to select the coverage that best suits their individual needs. Partner with Experts Who Understand Employee Benefits Navigating the complexities of group health insurance plans doesn’t have to be overwhelming. At KBI Benefits , our team brings decades of experience helping companies across industries build cost-effective, employee-focused benefits strategies. From compliance guidance to innovative financing models, we specialize in helping businesses save up to 40% on benefits expenses—without sacrificing quality or coverage. Contact KBI Benefits today to schedule a consultation and discover how the right insurance strategy can support both your workforce and your bottom line.

Offering a 401(k) plan is a major component of an employer’s benefits package, but simply providing one isn’t enough. To truly support employees’ long-term financial wellness and encourage meaningful participation, employers must understand how satisfied employees are with the plan — and more importantly, why. One of the most effective ways to do that is through an employee satisfaction survey. By tailoring your survey questions to reflect employees’ concerns, confusion, and priorities, you can gather actionable insights to refine your plan offerings and communication strategy. Here’s how to design thoughtful survey questions based on the most common concerns employees have about their 401(k) plans — and how to interpret their feedback. 1. Do Employees Know What They’re Enrolling In? Employee concern: What is a 401(k), and how does it work? Survey questions: How confident do you feel in your understanding of how the 401(k) plan works? Do you feel the company has provided adequate resources to help you understand the 401(k) plan? Why ask: If many employees report low understanding, it may signal the need for improved onboarding materials, workshops, or one-on-one sessions with financial advisors.  2. The Employer’s Role: Are Contributions and Match Clear? Employee concern: What is my company’s role in my 401(k), and how does the match work? Survey questions: How satisfied are you with the employer match offered in your 401(k) plan? Do you fully understand how the employer match is calculated and applied? Why ask: Confusion about matching contributions can lead to under-utilization of the benefit. If clarity is lacking, enhance your benefits communication or provide real-life match scenarios. 3. How Does the Plan Stack Up? Employee concern: Are all 401(k) plans the same? Survey questions: How would you rate the overall competitiveness of our 401(k) plan compared to your previous job’s offering or the offering of other jobs you’ve previously been offered? Which features of the plan are most valuable to you? (Select all that apply: generous match, low fees, automatic enrollment, immediate vesting, etc.) Why ask: This feedback helps identify which plan features resonate most with your workforce and where your benefits may fall short against competitors. 4. Is It Easy to Get Started? Employee concern: When can I start contributing? Survey questions: How satisfied were you with the timeline for enrolling in the 401(k) plan after joining the company? Was the enrollment process clear and easy to complete? Why ask: A lengthy or confusing enrollment process may deter participation. If dissatisfaction is high, it may be worth reviewing your onboarding or eligibility waiting periods. 5. Are Employees Saving Enough — and Do They Know It? Employee concern: How much should I contribute, and how often? Survey questions: How confident are you that you're contributing enough to meet your retirement goals? Would you find it helpful if we offered personalized guidance on how much to contribute? Why ask: Employees often feel unsure about their savings rate. Offering financial tools or advisory services could bridge this gap and boost satisfaction. 6. Are Employees Informed About Opportunities? Employee concern: What’s the maximum I can contribute? Survey questions: Are you aware of the annual IRS contribution limits for 401(k) plans? Would you like more communication around maximizing your contributions? Why ask: High-income or older employees may want to contribute more than the default. Ensuring they’re informed helps them plan more effectively. 7. Withdrawal Rules: Are Employees Aware of the Rules and Penalties? Employee concern: When can I access my money without penalties? Survey questions: Do you understand the rules around withdrawing money from your 401(k)? Would you benefit from educational materials or sessions about retirement withdrawal strategies? Why ask: A lack of awareness around withdrawal penalties and timelines can lead to poor decision-making or dissatisfaction. Education can help set clear expectations. 8. Plan Consolidation: Are Employees Managing Multiple Accounts? Employee concern: Can I have multiple 401(k) plans? Should I consolidate? Survey questions: Do you have retirement savings in more than one account (e.g., old 401(k)s or IRAs)? Would you be interested in services to help consolidate or manage multiple retirement accounts? Why ask: Many employees struggle with scattered savings. Supporting rollover or consolidation can improve their financial clarity — and your retention rates. Final Thoughts Designing a 401(k) survey that reflects real employee concerns allows HR and benefits teams to move from assumption to action. The questions above are crafted to uncover blind spots, highlight strengths, and identify specific areas for improvement — whether it’s boosting clarity, enhancing match policies, or simplifying plan features. Remember, the goal is not just to offer a 401(k) plan, but to make it a valued and effective part of your employees’ financial future. Ask the right questions, and you’ll get the answers you need to build a stronger, smarter retirement benefits offering.

When it comes to offering group disability or life insurance benefits to your employees, understanding the fine print is just as important as choosing the right coverage. One key detail that often flies under the radar is the “Actively at Work” clause. It might sound straightforward, but it has real implications for both employers and employees when it comes to coverage eligibility—especially when a disability claim is filed.  What does “actively at work” mean? In the simplest terms, the clause means that an employee must be engaged in a full-time working position on the day a disability or life insurance claim is made. Now, that doesn’t always translate to the traditional 30- to 40-hour workweek. What matters is the nature of the job and whether it qualifies as full-time under your business’s policies. If the employee holds a full-time role and is actively fulfilling that role’s requirements, they’ll generally meet the “actively at work” standard. Importantly, this clause doesn’t penalize employees for taking standard time off. Paid vacations, holidays, or even brief personal leaves typically don’t count against coverage—as long as the employee is still formally in their full-time position. For example, if an employee files a disability claim while on vacation, their coverage should still stand, provided they were actively working right up to the time off. But here’s where things can get tricky. Insurance companies often use the “actively at work” clause to evaluate whether a claim is valid. Let’s say someone has left your company but is still somehow listed on your group insurance policy. If they submit a claim after their departure, the insurer can deny it under this clause, arguing that the person wasn’t actively working when the claim was made. Another scenario might involve a newly hired employee who never actually begins working due to a sudden illness. Even if their paperwork was processed and they were technically “on the books,” they may not qualify for coverage unless they physically began working in the role. On the other hand, if an employee does start working in a full-time role—even if it’s just for a few days—and becomes disabled shortly after, the clause is usually satisfied. That’s why it’s so important for HR teams and managers to understand this provision clearly and document work start dates accurately. Why Employers Should Share This Info with Employees Misunderstandings about the “actively at work” clause can lead to confusion and frustration—especially when someone is dealing with a new medical condition or crisis. As an employer, sharing clear, accessible resources with your staff helps set expectations and builds trust. A blog like this one can be a valuable reference tool for employees who want to better understand how their insurance coverage works, especially when facing a life-altering situation. Legal Guidance from KBI Benefits Navigating employee insurance policies isn’t always straightforward, especially when legal nuances like the “actively at work” clause come into play. That’s where the ERISA attorneys at KBI Benefits step in. We help businesses like yours understand the legal implications of providing insurance through employee benefits and ensure your policies are both compliant and clearly communicated. Need help interpreting your group insurance policy or setting up coverage for your team? Call KBI Benefits today to learn how we can support your business with experienced legal guidance tailored to your employee benefits program.

Choosing the right insurance for your construction project isn’t just another box to check—it’s a crucial decision that impacts risk management, compliance, and overall costs. Two of the most common types of construction coverage are Owner-Controlled Insurance Programs (OCIP) and Builder’s Risk Insurance. While they both offer essential protection, they serve different purposes. Understanding these differences can help you make the best choice for your project. What is Builder’s Risk Insurance? Builder’s Risk Insurance, sometimes called course of construction insurance, is a property insurance policy designed to protect buildings while they’re being built. It covers losses from physical damage at the construction site and related property. What Does It Cover? Damage from fire, lightning, hail, explosions, theft, vandalism, and natural disasters like hurricanes. The building or structure under construction. Materials, supplies, and equipment (whether on-site, in transit, or in storage). Soft costs like lost sales, rental income, extra loan interest, and real estate taxes if delays occur. Additional coverage for scaffolding, temporary structures, debris removal, and pollutant cleanup (if added). What’s Not Covered? Earthquakes, floods, high-wind zones, and beach areas (unless specifically added). Normal wear and tear, employee theft, terrorism, faulty design, or poor workmanship. Who Needs It? Property owners, general contractors, subcontractors, lenders, and architects. What Affects the Cost? The type of construction materials used. The size and complexity of the project. Coverage limits, which should generally match the total expected cost of the project. What is an OCIP? An Owner-Controlled Insurance Program (OCIP) is a comprehensive insurance policy purchased by the project owner. It covers the entire construction project, including liability and workers’ compensation. What’s Included? Commercial General Liability (CGL): Covers personal injury, property damage, and contractual liability. Workers’ Compensation: Medical and wage coverage for injured workers. Builder’s Risk Insurance: Protects the site from damage. Excess Liability (Umbrella Coverage): Extends coverage limits. Professional Liability (Errors & Omissions): Protects architects and engineers against design-related claims. Subcontractor Default Insurance: Covers losses if a subcontractor doesn’t fulfill their obligations. Completed Operations Coverage: Extends liability protection even after the project is finished. Optional Add-Ons: Pollution liability, earthquake and flood protection, and industry-specific coverage. What’s Not Covered? Commercial auto insurance (must be purchased separately). Surety bonds (contractors must buy these independently). Off-site contractors and vendors. Small subcontractors with minimal involvement. OCIP vs. Builder’s Risk: Key Differences Primary Purpose: Builder’s Risk covers property damage; OCIP covers liability, workers’ compensation, and subcontractor risks. Who Pays? Builder’s Risk is typically purchased by the owner, contractor, or lender. OCIP is bought by the project owner. Who’s Covered? Builder’s Risk covers property owners, contractors, subcontractors, lenders, and architects. OCIP covers the owner, general contractor, subcontractors, and other stakeholders. Coverage: Builder’s Risk covers damage from fire, theft, vandalism, and natural disasters. OCIP includes liability, workers’ compensation, and property damage. Exclusions: Builder’s Risk doesn’t cover faulty design, terrorism, or normal wear and tear. OCIP excludes commercial auto insurance, off-site contractors, and surety bonds. Cost Considerations: Builder’s Risk varies based on project size and materials. OCIP has a higher upfront cost but can offer long-term savings. Which Insurance is Right for Your Project? If your main concern is protecting the physical structure and materials, Builder’s Risk Insurance is the way to go. If you need a comprehensive policy that includes liability, workers’ compensation, and subcontractor coverage, OCIP is a better fit. Large projects (typically $50M–$100M+) benefit more from OCIP, while smaller or less complex projects are better suited for Builder’s Risk Insurance. Final Thoughts Choosing the right insurance policy is essential for protecting your project from financial risks and staying compliant with regulations. Whether you need Builder’s Risk Insurance or an OCIP, getting the right coverage ensures peace of mind. At KBI Benefits, we help businesses navigate the complexities of construction insurance. Our experts can guide you in selecting the best policy, managing risks, and ensuring compliance. Contact a KBI Benefits specialist today to make sure your project is fully protected.

When it comes to running a successful business, employee productivity and cost efficiency go hand in hand. After all, a happy, engaged workforce means better performance, while smart financial planning keeps everything running smoothly. But how do you improve employee benefits while keeping costs under control? That’s where KBI Benefits comes in. Let’s break down what to expect from your employee benefits broker to make the most out of your benefits budget. Enhancing Employee Productivity Through Better Benefits Happy employees are productive employees. When people feel valued and supported, they naturally perform better. KBI Benefits helps businesses improve employee well-being in several key ways: 1. Comprehensive Employee Wellness Programs A well-rounded benefits package goes beyond just healthcare. It should support every aspect of an employee’s well-being: Physical Wellness – Quality healthcare plans give employees access to preventive care, reducing sick days and boosting long-term health. When employees aren’t stressed about medical bills, they can focus on work. Mental & Emotional Wellness – Stress and burnout are major productivity killers. Offering mental health resources—like counseling services or employee assistance programs—creates a healthier, more engaged workforce. Financial Wellness – Money worries can be a huge distraction. Benefits like Health Savings Accounts (HSAs), Health Reimbursement Arrangements (HRAs), and retirement plans help employees feel financially secure. When they aren’t worried about making ends meet, they perform better. Social Wellness – Encouraging workplace connections, team-building activities, and even flexible work arrangements helps employees feel part of a community, leading to better collaboration and morale. 2. Professional Growth & Development No one likes feeling stuck in a dead-end job. That’s why providing learning and development opportunities is a game-changer. Offering training programs, mentorship, and career growth resources helps employees feel motivated, engaged, and more committed to their roles. And when employees are growing, the company grows too. 3. Recognizing & Rewarding Employees Appreciation goes a long way. Studies show that employees who feel valued are more productive. KBI Benefits helps businesses design recognition programs that ensure employees get the praise they deserve—whether it’s through bonuses, extra time off, or public acknowledgment. 4. Giving Employees the Right Tools Outdated technology and inefficient processes can slow employees down. By ensuring employees have access to modern tools and software , businesses can eliminate frustration and boost efficiency. Reducing Costs with Creative Financing Providing top-notch benefits doesn’t have to mean sky-high costs. KBI Benefits specializes in cost-saving strategies that allow companies to maximize employee support without overspending. 1. Smarter Health Plan Options Healthcare costs are one of the biggest expenses for businesses, but there are alternative options that help control spending while still offering quality benefits: Self-Funded Insurance Plans – Instead of paying fixed premiums to an insurance company, businesses can cover claims directly, which can significantly cut costs. Level-Funded Plans – A hybrid between traditional insurance and self-funded plans, this option gives businesses predictable expenses while potentially saving money. Captive & Consortium Health Plans – Small to mid-sized businesses can join together to manage healthcare costs , reducing risk and gaining greater negotiating power. 2. Reducing Administrative Costs with Digital Solutions Manually handling benefits enrollment and claims processing is time-consuming and costly. KBI Benefits leverages digital solutions to streamline these tasks, reducing administrative burdens and improving efficiency. 3. Benefits Benchmarking Are your benefits actually competitive? KBI Benefits offers a benchmarking tool to compare your current offerings against industry standards. This helps businesses make informed decisions about what to improve—whether it’s healthcare coverage, retirement plans, or paid time off (PTO). 4. Free Benefits Plan Audit Sometimes, businesses are paying for benefits they don’t need or missing out on better options. KBI Benefits provides a free benefits audit , helping companies pinpoint areas where they can save money without sacrificing employee satisfaction.  The Bottom Line: Better Benefits, Smarter Spending KBI Benefits makes it possible for businesses to enhance employee well-being while reducing costs —a win-win for both employers and employees. By offering creative financing solutions, wellness programs, and benefits benchmarking , businesses can build a healthier, happier, and more productive workforce without straining their budget. Want to see how your company can optimize benefits while cutting costs? Schedule a free benefits audit with KBI Benefits today!

Small businesses have it tough when it comes to managing insurance costs. Traditional insurance policies can be pricey and inflexible, leaving little room to customize coverage or control premiums. But there’s another option that’s gaining traction: captive insurance . Once reserved for big corporations, this approach is now helping smaller companies get more bang for their buck. So, what’s captive insurance all about, and why should you care? Let’s break it down. What Is Captive Insurance? Think of captive insurance as DIY employee benefits. Instead of paying premiums to a commercial insurer, you and other businesses pool your resources to create your own insurance company, known as a captive . This lets you customize coverage, control premiums, and keep a closer eye on risk management. It’s like building an insurance plan that actually fits your workforce’s needs. Types of Captive Insurance There are a few ways to set up a captive, depending on how much control and risk you want to take on: 1. Pure Captives These are fully controlled by the members and come in two main types: Single Parent Captive: One company owns and controls the captive, covering only its own risks. Group Captive: Multiple companies in the same industry team up, sharing risks and rewards. This setup is great for smaller businesses looking to spread out the cost and risk. 2. Sponsored Captives With sponsored captives, outside investors provide capital, making it easier for smaller companies to get in the game without putting up all the money themselves. Captive Insurance vs. Traditional Insurance Here’s the big difference: Traditional Insurance: You pay premiums to an outside insurer who then assumes your risk. But these policies are often rigid, with strict exclusions that might leave gaps in your coverage. Captive Insurance: You invest your own resources into your captive, giving you more control over premiums, policies, and claims. Plus, you keep any unused premiums as profit. What’s in It for You? Key Benefits of Captive Insurance Custom Coverage: Tailor your policies to fit your unique needs, avoiding unnecessary extras. Control Over Decisions: In a group captive, you get a say in everything from premiums to claims processes. Invest Premiums: Unlike traditional insurance, you can invest your premiums, earning revenue even if no claims are made. Rewards for Safety: If your business maintains a low claims history, you get better payouts and can reinvest those savings back into your company. Is Captive Insurance Right for Your Business? You might think captive insurance is only for the big companies, but that’s not the case anymore. Thanks to group captives and sponsored captives, small businesses can also get in on the action. It’s a great option if you: Want more control over your insurance policies. Like the idea of investing premiums for potential returns. Prioritize safety and good risk management. Whether you run a small manufacturing company, a professional services firm, or a retail business, captive insurance offers a flexible, cost-effective way to protect your business. Captive insurance can be a game-changer, but there are a lot of factors that can determine if it works for your business. That’s where KBI Benefits comes in. Our brokers specialize in helping small businesses navigate this complex landscape, offering personalized advice to find the best solution for you. We offer a free audit of your current employee benefits plan to help you find cost savings and make sure you’re getting the most value from your existing benefits offerings. If captive insurance is the right fit, we’ll help you make a smooth transition. Want to learn more? Contact KBI Benefits today and see how captive insurance could work for your small business.

Employers looking to attract and retain top talent are considering different types of medical benefits to meet employee expectations. While major medical insurance remains the gold standard, some businesses are exploring limited health plans as a supplemental option. But are these plans right for your business? Understanding the role of limited health plans and how they fit into an employee benefits package can help you determine if they align with your company’s needs. What Are Limited Health Plans? Limited health plans are medical insurance policies that offer lower benefits and coverage restrictions compared to major medical insurance. These plans come with significantly lower premiums but do not provide the comprehensive coverage mandated under the Affordable Care Act (ACA). Types of limited health plans include: Fixed Indemnity Plans – Pays a set amount per medical service, regardless of the actual cost. Critical Illness Plans – Provides a lump-sum payment for serious diagnoses like heart attacks or strokes. Hospital Cash Plans – Pays a fixed amount per day of hospitalization. Accident-Only Plans – Covers medical costs associated with accidents. Accidental Death and Dismemberment (AD&D) – Pays out if an employee loses a limb, eyesight, or life due to an accident. Short-Term Health Plans – Temporary coverage for those in transition between major medical policies. Unlike traditional health insurance, these plans are designed to supplement coverage rather than replace major medical insurance. The Benefits of Offering Limited Health Plans While limited plans cannot serve as primary health insurance, they can offer advantages when included as part of an employee benefits package. 1. Helps Offset High Deductibles Many employees enroll in high-deductible health plans (HDHPs) due to their lower premiums, but these plans require employees to pay substantial out-of-pocket expenses before coverage kicks in. A limited plan, such as a fixed indemnity or critical illness policy, can help reduce these financial burdens. 2. Affordable Option for Employers and Employees Limited health plans are significantly cheaper than major medical insurance, making them a budget-friendly option for businesses looking to enhance their benefits package without a significant increase in costs. 3. Attracts and Retains Employees According to SHRM’s 2021 Annual Employee Benefit Survey, many employers have expanded their supplemental health insurance options. Offering additional coverage options, even in the form of limited health plans, can make your business more attractive to potential hires. 4. Useful for Employees in Transition Limited plans can be an ideal option for employees: Between jobs or recently laid off Aging out of parental insurance Missed ACA open enrollment Self-employed or working as freelancers Frequently traveling for work and needing out-of-network coverage Should Your Business Offer Limited Health Plans? Whether limited health plans are right for your business depends on several factors: Do your employees have high-deductible health plans? If so, offering a supplemental limited health plan can provide additional financial protection. Are employees looking for more affordable options? Limited plans can be an appealing choice for those who need lower-cost insurance alternatives. Do you want to enhance your benefits package without increasing costs significantly? Limited plans can provide added value to employees without the high expense of major medical insurance. Is employee retention a priority? Competitive benefits can help attract and retain talent in today’s workforce. Final Thoughts While limited health plans are not a replacement for major medical insurance, they can serve as a valuable supplement to existing coverage. If your business wants to provide additional financial protection for employees without significantly increasing costs, these plans might be worth considering. Before making a decision, consult with KBI Benefits to ensure you are offering the most optimized benefits for your workforce. This can mean the difference between a positive and negative ROI on your employee benefits. Contact a benefits expert today to explore the best options for your business.