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More Than A Clever Name

by Holley Maher

After scanning the front page of The Wall Street Journal, the reader will likely glean that many financial analysts are concerned about the future of the U.S. economy.  Certainly it’s not all doom and gloom, but there are very real concerns, specifically surrounding Social Security and Medicare.  Both programs are important because they provide income (Social Security) or health benefits (Medicare) to those who are retired (generally 65 and older) or unable to work because of a disability.  

Around 50% of individuals get benefits through an employer. Why? Employer-sponsored plans are an effective recruitment/retention tool because of employer contributions toward premiums, plus some group rates provide 70% savings from the individual market! Last, Section 125 plans often save an additional 30% in taxes!

With questionable funding for government programs, it’s more critical now than ever before for individuals to make “smart” benefit decisions today in an effort to take control of their financial futures.  What can employers do to ensure they’re getting the most “bang for their buck” and subsequently empowering employees to be savvier, more engaged and more appreciative of the employer package?

Like Medicare and Social Security, employers can be “smart” about benefit offerings by providing low-cost/high-value plans that limit exposure and offer proactive savings in two essential areas: health care and loss of income.  Cash is king, and individuals participating in a medical plan, health savings account, 401(k) plan and disability insurance will potentially be the most protected today and empowered in the future.  Last, education is key.  If employees don’t understand how the plans work, they will not value the plans, so employers must develop an effective and adaptable communication plan to ensure greater retention and appreciation at the workplace.

Holley Maher (hmaher@SmartBenefitsPlus.com) is a partner at Maher, Rosenheim, Comfort & Tabash LLC, specializing in group and individual insurance.

Submitted 7 years 128 days ago
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