Every employer’s situation is different: different industries, workforce demographics, budgets and goals. That’s why we don’t believe there is a one-size-fits-all approach to employee benefits.
Over the years, one lesson has become clear: the employers who achieve the best outcomes aren’t always the ones spending the most—they’re the ones willing to ask questions before making decisions.
Here are a few of the lessons we’ve learned.
Lesson #1: Don’t Assume Your Renewal Is Your Only Option
One of the biggest misconceptions we hear is “Our renewal is what it is.”
Many employers assume premium increases are simply the cost of doing business. Sometimes they are, and sometimes they aren’t. We’ve worked with organizations that discovered alternative funding strategies that better aligned with their business goals.
One fabrication company reduced annual healthcare costs by more than$23,000 while improving employee out-of-pocket benefits. A contractor reduced premiums by29%, lowered deductibles and expanded provider access after evaluating a different funding model.
Those results won’t be typical for every employer, but they illustrate an important point. You won’t know what’s possible until you explore your options.
Lesson #2: The Best Employee Benefit Improvements Don’t Always Mean Spending More
When employers think about improving benefits, they often assume it requires increasing the budget. That’s not always the case. Sometimes, the greatest value comes from designing benefits more strategically.
For some organizations, that means exploring a level-funded health plan. For others, it means implementing a Section 125 cafeteria plan that works alongside their existing medical coverage.
Section 125 plans allow eligible benefits to be paid with pre-tax dollars, creating potential FICA tax savings for employers while giving employees access to additional wellness and supplemental benefits.
In many cases, employers are surprised to learn they don’t have to replace their current health insurance to create additional value.
Lesson #3: Every Company Has Different Priorities
A CFO may be focused on long-term cost control. An HR director may be thinking about recruiting and retention. A CEO may be looking at the overall financial health of the business. The best employee benefits strategy considers all of those perspectives.
That’s why our conversations don’t begin with products—they begin with questions, like:
What are your goals?
What’s working well today?
Where are your biggest frustrations?
What would success look like one year from now?
Only after understanding those answers do we begin discussing potential strategies.
Lesson #4: The Earlier You Start, the More Options You Have
One pattern stands out across nearly every successful benefits review we’ve been part of.
The employers who start early have more flexibility, time to compare funding models, time to evaluate tax-saving opportunities, time to ask thoughtful questions and confidence in the decisions they ultimately make.
Waiting until renewal season often limits your options, and planning ahead expands them.
Better Decisions Begin with Better Conversations
At Dannah Investment Group, we don’t believe every employer should switch to a level-funded health plan. We also don’t believe every organization needs a Section 125 cafeteria plan.
What we do believe is that every employer deserves to understand the options available before making important decisions about employee benefits.
The goal isn’t change for the sake of change. It’s helping employers make informed decisions with confidence.
Let’s Explore What’s Possible
If you’d like to evaluate whether a level-funded health plan could be a good fit, we’d be happy to prepare a no-obligation comparison using the employee census from your most recent renewal.
If you’re interested in understanding the potential impact of a Section 125 cafeteria plan, simply share your total number of W-2 employees, and we’ll prepare an initial savings estimate.
We’d love to have a conversation focused on helping you make the best decision for your employees and your business.
Securities offered through Kingswood Capital Partners LLC (KCP), member FINRA/SIPC. KCP is an affiliated entity. Dannah Investment Group, LLC, may at times offer products or services that are unrelated to and unaffiliated with KCP and its affiliates. These products or services are unrelated to and unaffiliated with KCP and its affiliates.