Dear Fellow Business Person:
Premiums are still increasing at double digit levels. General Motors
will be spending over $5.5 Billion in 2005 on health care. This is an unprecedented
amount of money. As a result, GM is excited about the possibility that the
union will accept a plan concession that will increase
their deductible from zero to $150.00. Yet another gasping short term fix.
Consumer-driven health plans. These are few and far
between today, but they won't be for long. Though they come in a wide
variety of types, they share a common principle: Give employees the tools
and financial incentives to shop for smarter, more economical care that benefits
both employers and workers. Most consumer-driven plans combine high-deductible
health insurance coverage (usually based on a preferred provider network)
with an employee-controlled spending account such as a Health Savings Account.
Legislation passed in 2003 provides tax incentives that
make HSAs more attractive.
About 14% of large employers will offer consumer-driven
plans in 2005, rising to 26% in 2006, according to a recent survey by
Mercer Human Resource Consulting. Most will make use of HSAs.
It's the latest trend in health care, at least among
Fortune 500 companies:
Let employees design their own health insurance plan based on their needs
and pocketbooks—putting everything on the table, from the size of the deductible
and out-of-pocket limits, to the amount of access they have to physicians and
Small Business: Bush's Small Business Health Plan Didn't Go!
President Bush's plan was to let small businesses band
together to negotiate a better rate for health insurance. This did not occur and does not look as
if Congress will allow the association plans to occur.
Strength In Numbers
Look for small business to begin wanting the same programs
offering choice and tax benefits to both the company and its employees.
They also want the ability to combine with other small business to gain
economy of scale. The IRS has recognized this need and does allow us to band
together to reduce costs and improve benefit offerings. You need to find
out how this is accomplished.
Small business needs to be provided with the same benefits
as the large employers.
Small business is competing for the same work force. Economic recovery has
been on the backs of small business. Benefits are the single most important
item for an employee when considering employment options.
|Top Five "Very Important" Aspects for Employees by Gender
Benefits are also the largest single labor cost to small business.
The administration of such plans is overwhelming for
small to medium sized companies. The solution is to provide your company
with the tools that reduce costs today and into the future. Small
business needs to focus on their business, not the business of employee benefits.
The American Group
Look for small business to see the benefits of human
resource and benefits management outsourcing. By
aggregating small businesses together, small business employees are provided
with Fortune 500 benefits, and small business saves money.
This is the result that President Bush desired through his business association
plan. Now, small business will have available multiple health plans for their
employees. Small business benefits by utilizing Health Savings Accounts (HSA)
for owners and key executives. This substantially reduces their cost by utilizing
Health Reimbursement Accounts (HRA). Plus, the employees are provided with
Flex Savings Accounts (FSA), thereby reducing the cost of medical, eye and
dental care. Employers reduce the taxes they pay for the employees' Social
Security, Medicare, and Workers' Compensation. Now, small business
Competes with the major corporations' benefits effortlessly in a paperless
Every benefit that our Uncle Sam has provided over the
past 24 months is utilized with maximum cost savings and efficiency.
The American Group is a human resource and benefits management
we manage over 11,000 employees. The aggregated medical costs have been less
then double digit since 1996. All the programs are fully insured. We
would like to share with you how your organization can capitalize on all that
Uncle Sam has made available to you. Call 330.668.1845;
e-mail inquiries to firstname.lastname@example.org,
here for a free,
no obligation quote.