Work Flex Benefits

[fundmark19]

Does anyone on the board have any dealings with their company benefits? Our HR is being way to slow in trying to get the situation resolved. Currently we are getting absolutely fleeced by Manulife for benefits. It looks like lots of the employees would like to get into a flex benefit scenario instead of fixed.

We are a financial company of 20-30 employees and are wondering what other companies of similar size do for benefits and total cost or cost to employee if possible. If anyone wants to post who theirs are provided through and even referral to brokers who they have dealt with to get benefits specifically flex I would appreciate it.

Please don't turn this into a oil companies who provide millions of dollars and thousand of days off for each employee **** measuring type threads

[Halfcreek]

The company I work for is also small - smaller than yours though. We use Vital Benefits and I think everyone is pretty happy with them. They seem to be very flexible about working with what the company wants to be able to provide.

[REDVAN]

What about benefits for self-employed, or one employee corporations? Do these providers generally work with those type of companies?

[Ace]

Be aware, from what I've examined, providing flex benefits (such as a health spending account), costs you dollar for dollar what the employee spends. I can't remember if it's even higher in that it costs you what the employee is entitled to spend. Either way it's basically just giving cash to the employee (tax free for them), there is no financial benefit to the company to pursue this option, other than the non-financial benefits of making employees happy. A more traditional plan generates some savings because the insurance companies evaluate the fact that many employees will not use their benefits. Basically a flex plan, I don't believe, will be cheaper by shopping around.

[fundmark19]

Originally Posted by Ace

Be aware, from what I've examined, providing flex benefits (such as a health spending account), costs you dollar for dollar what the employee spends. I can't remember if it's even higher in that it costs you what the employee is entitled to spend. Either way it's basically just giving cash to the employee (tax free for them), there is no financial benefit to the company to pursue this option, other than the non-financial benefits of making employees happy. A more traditional plan generates some savings because the insurance companies evaluate the fact that many employees will not use their benefits. Basically a flex plan, I don't believe, will be cheaper by shopping around.

That is fine. Like I said Manulife currently has us bent over and are not even generous enough to provide lube. Just rough numbers not exact but company pays 50 % of bennies so roughly we are paying a total of 800 per employee a month (400 work pay 400 employee) now as an employee I can go out and get almost the exact same plan from manulife for a total of 300 a month on my own. There has to be a better solution then what we currently have.

[Slava]

PM Sent.

[Bend it like Bourgeois]

Check into the Chambers of Commerce plan. It is usually pretty competitive for small business.

Some form of flex benefits is great, but they usually top out and that hurts at the time you need it most. A combination is ideal - just my 2 cents.

[fundmark19]

I am going to work Slava like a slave and will report back to everyone about how he performs and what we can come up with! So far so good he is has been very prompt and helpful!

[Northendzone]

I work for a group benefits consulting firm and here is my two cents:

Flex benefits - a well designed program can be beneficial for everyone; however, a firm with 30 or so employees is not going to get a flex plan on their own, there maybe some pools of companies out there, that offer something, but I am not active in that smaller market. You need at least 200 or so employees to make a flex plan work

Health spending account - can be a good deal for everyone. You can scale back your insured plan and use the savings to fund the HSA. Unused HSA funds are eventually returned back to the plan sponsor. Te HSA gives employees some flexibility to pay for things like braces, or glasses that will be in excess of the plan maximums.

Your group benefit plan is part of your overall compensation package, some companies offer scaled back benefit plans, but provide more direct comp, others are happy to be in the middle.

As for the poster above who is paying $400 per month for his share of the benefits and the company is paying the same. Is that just for group benefits? If so that is stunning, I'd love to have a look at your plan and the claims experience. to be paying almost $10,000 per year for group benefits is crazy.

A typical group benefit plan should be running at around 6.0% of payroll - it goes up to about 10% to 12% if you include pension, more if you include vacation.

If you wish you can PM me and perhaps my firm could help your company design a plan.

[Northendzone]

Originally Posted by fundmark19

That is fine. Like I said Manulife currently has us bent over and are not even generous enough to provide lube. Just rough numbers not exact but company pays 50 % of bennies so roughly we are paying a total of 800 per employee a month (400 work pay 400 employee) now as an employee I can go out and get almost the exact same plan from manulife for a total of 300 a month on my own. There has to be a better solution then what we currently have.

You probably would be able to get a similar plan - if you were willing to go thru the medical underwriting process.

This is a huge amount of money per month. Can you confirm that is is just for group benefits only. There are not many companies out there (in this marketplace) that share benefit costs on a 50/50 basis.