March 19, 2021 – Cash flow is king for small businesses. It’s one of the most important indicators of financial health yet also is a source of anxiety. In fact, 7 in 10 small business owners say cash flow concerns keep them up at night. Providing employee benefits is a top expense for small companies, and business owners are seeking ways to provide their employees with the best possible care while controlling costs at the same time. For many, looking to level-funded health care plans is becoming a more widely used vehicle for achieving both objectives.
Considering a business’s level of investment required each year for health care benefits, cash flow and predicting costs are always top of mind for business owners. That predictability is especially helpful in an environment of increasing costs, as 69% of business owners say their health plan costs have increased in the last 4 years, with one-third seeing annual increases of 10% or more.
One of the key differences between level-funded and fully insured plans — especially for businesses with at least 50 employees — is the potential savings on the back end in the form of a surplus when claims are lower than expected. While the experience for each employer varies, more than 1 in 3 small businesses with level-funded plans receive a surplus at the end of the year. Of employers that receive a surplus, the amount on average is about 7% of the total annual cost of the plan — fixed and variable costs.
Benton Oakfield offers a free employee benefits review for your business. The result is a benefits program that genuinely supports your defined objectives, makes the best use of your benefits dollars, and enhances employee satisfaction and productivity. We invite you to contact us to discover the difference an exceptional benefits program and an experienced advisor can mean for your company.
More information can be found at www.BentonOakfield.com