Why in the world would you reimburse employees more than your insurance plan covers? After all, isn’t that why you have a plan to begin with? Well that’s true, but in some years doesn’t it seem like you are paying more than you are getting out of it? Why not lower the benefits considerably? If that hurts the employees too much, you can help them out by covering the cost of some of their claims. Usually, the sum of the lower cost plan plus the amount you pay employees in “reimbursement” is considerably lower in overall cost than your current plan.
Administration is the key to success. How you reimburse the employees exactly, who sets the rules and how the money is taxed are important considerations. If the plan saves money for the employer, does it necessarily hurt the employee? Actually, the answer is no. Contact us and we’ll show you how you can save money on your insurance plan.