How to plan affordable employee health benefits for a small business

Start with what you want to help employees do. Someone looking for advice about a routine health concern needs a different service from someone trying to find a therapist or compare prescription prices. One benefit may not meet all of those needs.

For a small business, an affordable benefit also has to be manageable. Look at the company's cost, the employee's cost and the work involved in running it. The advertised monthly price won't tell you all of that.

Separate health insurance from health access services

Health insurance has coverage terms, exclusions and cost-sharing rules. Services such as telemedicine and prescription discount programs serve more specific purposes: helping someone reach care or get a discounted price. Those services do not provide comprehensive health insurance.

Be clear about that difference when choosing a service and announcing it to employees. A discount program is not prescription insurance, and virtual care does not cover every medical need. Work with a qualified benefits adviser on insurance options and your obligations as an employer; adding a service does not settle those questions.

Start with the needs of your workforce

Ask employees what makes benefits difficult to use and which kinds of support would help. They can answer those questions without disclosing diagnoses. Keep participation voluntary and avoid collecting personal medical details.

Consider how your team works and lives. Different shifts, multiple states or limited time away from a job site can affect access. Some employees may already have insurance through another household member. A useful service needs to fit those circumstances.

Use what you learn to set a few purchasing priorities. Convenient routine care and clear prescription pricing might come first for one employer, with other services considered later. Another workforce may need a different mix.

Build a budget that includes employee costs

Get the full payment arrangement in writing. Look for employer charges, employee enrollment charges, per-visit fees and dependent costs. Check minimum participation requirements and cancellation terms, too. The proposal should distinguish fixed charges from costs that change with enrollment or use.

Be explicit about who pays. An employer-funded option is a different offer from a service employees buy for themselves. If you plan to use payroll deduction, first confirm the provider supports it and have the appropriate adviser review the requirements.

Compare quotes for the same group of people and the same scope of service. An employee-only quote cannot be compared directly with one that includes dependents. A membership price that excludes visits leaves part of the cost out.

Check whether people can actually use the service

Ask for a demonstration of the employee's first experience, from registration and eligibility verification to booking an appointment and getting help. Check availability in the states where your employees live and whether the hours suit their schedules.

Walk through what happens when the service cannot help. A virtual clinician may recommend in-person care. A medication discount may not apply to an employee's prescription or pharmacy. Include those limits in the information employees receive.

Give administration an owner

Assign responsibility for eligibility updates, new hires and departures. Decide who will handle billing questions and direct employees to support. Ask what reporting the employer receives, keeping benefits administration separate from private clinical information.

For launch, give employees a plain-language overview, instructions for getting started and an administrative contact. Put prices and limits beside the service description so they are easy to find. After launch, check whether people can access the service without asking about their health concerns.

Discuss the right fit for your business

LASO Health's WorkWell includes Connect, Therapy and Meds. Talk with LASO Health about the options available to your business, with your benefits adviser involved where appropriate. Before choosing an arrangement, review eligibility, the services included, employee costs and the administration required.