Budget season is upon us, and one of the top concerns of any business is budgeting for health care. With health care costs expected to increase by 6.5 percent, according to PwC, this is something businesses can’t overlook. How can you still provide quality health care for your employees without breaking your own budget?
1. Be Prepared
Working the new costs into the budget should be easy if your business has been highly profitable this year. While employees may prefer to see an increase in cash in their paychecks rather than the business covering additional costs, companies should absorb as much of the increase as possible. Remember, the Affordable Care Act limits the amount you can charge employees, but it doesn’t prohibit you from taking on additional burden. Your employees should know about the increases in health insurance costs, so they recognize their hidden raise.
To keep reading, click here: Budgeting for Health Care: 4 Tips for Success
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Link is here: https://thebenefitsguide.com/budgeting-health-care-4-tips-success/
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Very few employers actually do what this article suggests even though the suggestions are very reasonable.
It is very reasonable to let employees know certain facts as listed and why pay increases are included as part of employer costs. Usually a union job contract makes employers pay healthcare benefits in lieu of full wage increase. The problem with rising healthcare costs has made raises for employees stagnant so this information should be told to employees in employer healthcare insurance.
If more people were aware of this, that the Affordable Healthcare program rising costs effectively stagnated pay raises, more employees would want to be more involved with decisions on the healthcare coverage.