Benefit Plan Solutions
A healthier workforce for your business
A success business needs a healthy, talented employee workforce. By offering benefits, employers can ensure the health of their employees is managed and retain talented employees long term. With the recent Health Care Reform laws taking effect and introducing new private exchanges, shopping for your employee’s health insurance has become even more confusing. Where to start? Call Health Insurance Administration for a cost-effective approach to offering your employees the right benefit plan packages. We provide complimentary consultations and even a custom-designed plan based on your business’ needs with quotes from all the carriers in the state and through the new health insurance exchanges, including Michigan’s Health Insurance Marketplace.
Managed Care Plans
Preferred Provider Networks (PPO)
This plan encourages you to use in-network providers and gives you discounts when you do. It allows you to choose any in-network provider without requiring referrals. It covers out-of-network providers with higher co-payments and deductibles.
Health Maintenance Organization (HMO)
With HMO plans, you build relationships with doctors in the network. These plans have lower out-of-pocket costs, pay benefits only for in-network providers, and out-of-network coverage is provided only for emergencies.
Point of Service (POS)
Choice is the centerpiece of these flexible plans, which allow you to go in-network or out. While out-of-pocket costs are reduced by choosing in-network providers, out-of-network coverage is also available at a higher price.
High Deductible Health Plans
This plan helps you balance your health and financial well-being. It features low premiums and an integrated deductible for both medical and pharmacy costs. Typically compatible with the Health Savings Account (HSA), it gives you solid healthcare coverage and greater control over healthcare spending.
Whole and term life insurance, short-term and long-term disability insurance, dental insurance plans, and vision insurance plans.
Third Party Administration
Partially Self-Funded Plans
Partially Self-Funded Plans (PSF)
HIA offers the design and administration of these plans, which have corporate limits starting at $1,000.
Health Reimbursement Arrangements (HRA)
Employer-funded plans that reimburse employees for incurred medical expenses that are not covered by the company’s standard insurance plan. Because the employer funds the plan, any distributions are considered tax deductible (to the employer). Reimbursement dollars received by the employee are generally tax free. As a benefit, an employee may be reimbursed for qualified medical expenses from his or her employer. The funds received are tax-free, but because the plan is employer funded, the employer has the right to cancel or alter the distributions at any time. In spite of this, many employees consider HRAs as a valuable benefit given the rising cost of health care.
Health Savings Accounts (HSA)
HSA plans have two primary components – health insurance coverage and an actual tax-advantaged savings account. You can use the money in the savings account to pay for your current health expenses, but you also own the money in the account regardless of whether your health coverage changes or you move to another city. So, HSAs offer an opportunity to build tax-advantaged savings for current and future health expenses.
Section 125 Cafeteria Compensation Plans
Flexible Spending Accounts (FSA) – Health Care & Dependent Care
HIA offers Flexible Spending Account administration for employers who offer a Flexible Spending Account. A FSA provides employees a tax-savings in which increases their take-home pay by using pre-tax dollars to pay for eligible FSA expenses for employees, spouses, and qualifying children or relatives. A Flexible Spending Account lets employees set aside pre-tax money from their paychecks to spend on healthcare expenses not covered by their insurance policy. Money that goes into an FSA is pre-tax, so employees can save as much as 40% of each dollar they put into the account, as long as they spend the money in the account on qualified health costs.
HIA has partnered with FSAStore.com to provide employees access to an inventory of thousands of qualified health products. You can use the Find a Doctor feature to find doctors, dentists, acupuncturists and other healthcare providers, and find a list of health services employees can pay for out of an FSA.
Qualified Pension Plans
Profit Sharing Plans with 401(k) Option
These plans give employees a share a chance to share the profits of the company on a flexible basis. Each employee receives a percentage of those profits based on the company’s earnings. This is a great way to give employees a sense of ownership in the company. The company decides what portion of the profit will be shared. There are typically restrictions as to when and how you can withdraw these funds without penalties.
Defined Benefit Plans
Non-Qualified Pension Plans
Executive Bonus Plans
Reward the employees you want with an Executive Bonus Plan. Under an Executive Bonus Plan, an employer purchases and pays for a life insurance policy for a select group of employees. The employer pays for the policies via a pay raise to the employee(s) equal to the policy premium, and in some cases an additional bonus to cover the income tax on this additional pay. The employer is able to pick and choose specific employees to participate in the plan. Employees have full rights to the policy and its cash value and can take tax-free income from the policy in the future. As a way to increase the plan’s retaining power, a restrictive endorsement and vesting schedule may be added.Benefits to the employee include: Employee owns the policy and has control over the cash value and naming of the beneficiary; Tax-free income is available from the policy via partial withdrawals and loans; Cash values and policy values accumulate tax-deferred; Employee chooses timing and amount of withdrawals; Tax due on the bonus can be covered by an additional bonus from the employer; Contribution limits are flexible Benefits to the employer include:
- Rewards key employees in a discretionary manner;
- Easy to implement and maintain;
- Premiums are immediately tax-deductible; and
- Employer is not obligated to make premium payments
Deferred Compensation Plans
Deferred compensation is defined as the amount of earned income that is payable at a later date. Most deferred-compensation plans allow the wage earner to defer tax now so that the funds can be withdrawn and taxed at some point in the future. The most common form of deferred compensation is a retirement plan. Deferring income allows the earner to use the income later in life when they have a lower tax rate. Other examples include pension plans and stock-option plans.