Employer Questions



How are Health Care trends impacting you and your company? 

Philadelphia, PA (PRWEB) March 11, 2005 — Company medical insurance premiums for 2005 rose approximately 10%, representing the sixth year of double-digit rate increases. These increases are sharply higher than the US Consumer Price Index that was 3.3% for 2004, and an average annual 2.7% for the last six years.

Stated in terms of payroll, employer costs for health benefits have risen steadily from 7.28% in 2000 to over 9% for 2005, according to the Hay Benefits Report, a cross-industry survey of more than 1000 US companies.

“This is a very difficult time for companies to cope with double-digit medical premium rate increases,” said Michael Carter, Vice President in Hay Group’s Benefit Practice. “In the current business environment, most companies simply cannot afford to pass these costs along to their customers.”

As a result, to maintain current levels of profitability, companies are likely faced with shifting medical costs to employees, exploring new strategies to contain rising medical costs, as well as cutting costs in other areas.

“There is no one ‘silver bullet’ solution to contain medical costs, so companies must use multiple strategies,” says Hay Group’s Carter. He adds that “the longer companies wait to address the issue, the more painful it could be for them or their employees.”

Looking after your employees, while taking care of your bottom line, benefit choices, provider access, strength and security, and cost containment – but not at the expense of your employee wellness or satisfaction. These are all issues to consider in choosing your benefit plan. Today, selecting the right plan is a strategic business decision. ARS Solutions can develop a “Benefit Business Plan” specifically for your company. Our small to mid-sized company solutions may be just what you are looking for in a health and employee benefit plan.

Are you looking for better ways to attract and retain employees? 

Your ability to attract, retain, and motivate employees — while containing costs —- has never been more important.

ARS Solutions works with each of our employers to evaluate their employee benefit programs and offer solutions to enhance their overall benefit choices, while containing costs.

What we’ve learned about employers:

  • According to LIMRA, employers recognize voluntary coverage as one of their solutions in holding the line on employee benefit costs.
  • LIMRA also found that 36% of all employers said that they would consider adding a least one voluntary product in the next two years.
  • In a Met Life study of employee benefits trends, November 2001 found that 58% of employers rate “providing employees with benefits designed to balance their work and personal lives” as one of their most important benefits strategies.

What we’ve learned about employees:

  • In the Met Life Study in November of 2001 over 50% of employees surveyed said they prefer to purchase their voluntary coverage at the workplace, when given the option based on convenience, lower cost, easier to qualify for coverage and more comprehensive coverage.
  • EBRI March 2002 study found that benefits continue to be very important in job selection. 77% of workers reported that the benefits that a prospective employer offers are very important in their decision to accept or reject a job.

Voluntary benefits insurance plans might be right for your company if:

  • You’re concerned with rising cost of employee beneft
  • You’d like a chance to provide benefits that help you hire and retain quality employees
  • You’d like to be competitive with other companies who provide more that just wages
  • Your employees have been requesting enhanced or post-retirement benefits, like life insurance that goes beyond group term policies

Are you looking to increase benefits but not increase your costs?  

Advantages for Employers, Benefit and Payroll Managers

At ARS Solutions, we specialize in helping to fill the gaps created by co-payments, deductibles, loss of income and various out-of-pocket expenses not addressed by major medical plans. Additionally, we offer “pre-taxing” services that help employers and their employees enjoy the advantages of a flexible benefits plan, commonly referred to as a cafeteria plan. A cafeteria plan allows employees to choose from qualified benefits, and the plan provides potential tax savings to both the participating employees and the sponsoring employer.

Whether you are an employer, a benefits or a payroll manager, ARS Solutions offers you specific advantages through our “Benefit Business Plans”.

Employers and benefits managers at companies of all sizes face financial challenges when trying to improve employee benefits without increasing costs. To keep and attract good people in a tight market, companies must add more options and individual choices to pick up where traditional coverage leaves off.

At ARS, we can help strengthen any benefits program by offering your employees a wide variety of customized payroll deduction insurance policies that they choose, pay for and control. These policies are offered under a Section 125 Cafeteria Plan and may provide tax savings for the employer and the employee.