Although Medical Plans are important benefits to the valued employees, Ancillary coverages have evolved to enhance benefit packages. Employees can offer these products on an employer paid basis or on a voluntary basis.
Coverage is designed to offset out-of-pocket expenses caused by an accident.
Plan is intended to cover expenses not include in the medical plan.
Employees are able to provide initial base amount of life insurance and the additional coverage can be purchased on a voluntary basis.
Why offer ancillary benefits?
All the employees need oral and vision care and only a health plan is not enough to keep employees healthy. It has been proven that dental and vision plans can be effective preventive healthcare tools that can lower the mediclaim costs. Early symptoms of high blood pressure, diabetes and other diseases can be detected in an eye exam before showing up in a physical.
The price hike in health insurance has been experienced by a lot of people but the small businesses have a new option to help their employees. The HRA can provide the benefits to their employees without the tension of the insurance. There is an average health insurance costs for both individual and family plans
Ancillary benefits have the advantage of being affordable
As group insurance products, the risk is spread through a large population that keeps premiums reasonably priced.
The premiums are paid with pre-tax dollars when the business takes advantage of Section 125 of the IRS Code.
The cost can be either be completely covered by the employer or shared with the employees by arranging an employer-employee split.
How does an Ancillary employee benefit have work?
There are two ways ancillary can be founded: Voluntary or employer contributory. On the employer-contributory ancillary benefits, the employer has to pay usually 50-100% of the premiums.
Benefits to Employers
Offering ancillary benefits make the investor’s business more competitive in the employment marketplace.
Employers do not pay for voluntary ancillary benefits or can share the cost with employees to keep costs down while pleasing employees.
Benefits to Employees
They can use pre-tax dollars to pay for ancillary benefits that lower their taxable income.
The cost is affordable. Risk is spread among a large group of people to keep the premiums reasonable.
Ancillary products’ ate responsible for the access of different insurance.
They can enjoy the peace of mind and security that comes with ancillary benefits and group insurance.