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Category: Business Start-Ups Benefits

Employee benefits for start-ups: the long-term vs. short-term outlook

Posted on by Immix Group

Once they grow above three employees, many small businesses start thinking about getting a benefits program. After all, benefits are a key attraction in hiring the best talent.

From a human resources perspective, small businesses scaling up should make sure the benefits package they settle on is competitive. Contrary to popular belief, it’s not enough to shop around for providers that offer the best rates. Let’s look at the factors to be aware of — and if they align with your business philosophy.

A lot depends on whether you’re in it for the long or short term. Pose this specific question to potential providers: “How do benefit premiums work and what are they going to cost in a five-year timeframe?” Be aware that insurance providers can offer seemingly discounted rates to lure you in initially — then, a year or two later, significantly bump up those rates. Now, if your initial budget is tight and you know that your rates will go up by double digits annually, then that’s fine. But this eventual bump in rates should be made transparent to you from the get-go.

 

Other options

Then there’s the opposite scenario: A provider advises you to sign on for higher-than-average rates for your group. The reasoning is that, with higher rates, the provider will have more room to play with should you run into a high-claims situation. So, do you want low rates with higher risk or higher rates with lower risk?

Or, you could opt for the right optimal rates. But what determines an optimal rate? To get a better idea, you have to understand how premiums are derived. Ultimately, premium rates are based on a combination of factors:

  •      claims paid vs. premiums paid (a.k.a. experience)
  •      trend factors
  •      pooled vs. non-pooled benefits
  •      profit margin/admin cost/commissions (a.k.a. target loss ratio).

We won’t go into exact technical explanations, but it’s important that you are aware of the above. In our consultations and renewal reviews, we delve deeper into each factor and explain how it is intertwined with your premiums. Interestingly, most people are aware of the first three factors; few know about the fourth one. Many clients have found it eye-opening to understand how brokers and insurance companies get paid. Understanding all this, we are often able to optimize costs in the long term.

In short, if you have a long-term outlook, don’t just focus on the surface rates of quotes and benefits. Rather, think about the underlying factors that will affect your company’s experience and rates in the long term. Consider doing an audit on your benefits with the above perspectives in mind.

ImmixGroup are group benefits specialists who provide transparent consultation and optimization of benefits for businesses.

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Exclusive: Our report on the Vancouver Cannabis Trade Show 2018

Posted on by Immix Group

In Canada this year, we’ve seen much progress and many changes with regard to cannabis legislation. At Immix Group, we are committed to providing active updates to you on the legalization of cannabis – and how this may change the healthcare landscape. As part of keeping you up to date on where the industry is heading, we attended the recent Vancouver Cannabis Trade Show.

 

Here’s our report to you:

At the show, we observed very professional-looking vendors and producers of cannabis derivatives such as oils, creams and topical balms. Cannabis-infused pet products were also a big hit. I even found one vendor selling what seemed to be designer wooden sunglasses – only later to find out that these glasses are designed to block out the harsh lights often used to grow marijuana.

Overall, our impression was that the industry is aiming to become mainstream. One day soon, you will likely find topical cannabis balms on the shelves at London Drugs and Shoppers Drug Mart.

Surprisingly, there was zero trace of cannabis scent. Note that at the time of writing this report, cannabis will be legal in Canada on October 17, 2018. And while a certain demographic is concerned about the psychedelic effects of cannabis, we found that many vendors are trying to target and capture the healthcare market for pain management and healthcare alternatives. Their focus is to cure or alleviate ailments such as migraines, headaches, arthritis, stress, anxiety and stiff back and muscles.

One thing is for sure. Things are changing in the Canadian healthcare system! Medical cannabis could definitely play a role in positively impacting the medical industry. Vendors could soon provide a low-cost alternative in easing various types of illness and pain. In Vancouver especially, the demographics and culture seem to match well with the adoption of medical cannabis.

When do you think your family doctor will start to recommend medical cannabis as an alternative healthcare solution? Or have they already? Let us know! We’re interested to hear from you.

If you have any questions about our benefit programs and medical cannabis coverage, feel free to contact us: howard@immixgroup.ca

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For young businesses and start-ups: The best – and most revolutionary – health/wellness benefits platform

Posted on by Immix Group

 

You and your business are new, fresh, forward-looking. You’re rethinking traditional workplace health benefits.

 

An efficient, innovative employee digital, cloud-based benefits platform may be just what you’re looking for. This new benefits platform solves the top three common complaints:

  •  – plan administrator’s management burden
  •  – annual cost increases
  •  – declined claims, non-coverage and tedious process.

The platform eliminates all of the above — and is designed for you, the tech-savvy millennial workforce.

 

How is this different from a typical benefits plan?

With traditional benefits plans, administration is archaic. There are a lot of logistics involved for enrollment, changes to the plan and claims coordination. And, there’s no easy access to wellness programs. Whether you are the controller, business owner or HR manager, you don’t want to be burdened with such time-consuming tasks.

This digital, cloud-basedplatform allows for intuitive, easy, convenient access for both the plan administrator (PA) and members to manage and use their benefits. With an Uber-like app, users can quickly find, book and pay for health services such as gym membership, yoga, meditation, personal trainers and so on – none of which typical benefit plans will cover.

And, using this new platform, the PA does not have to manually verify and submit members’ expenses. As a result, the platform lets you focus on your business, not on managing your benefits.

 

Efficient, tailored benefits

With typical benefits plans, members commonly complain that they don’t use many of the benefits or services – yet they keep getting yearly increases. Let’s face it. A company comprised mainly of young workers won’t be paying for, say, as many hearing aids or surgical stockings as a company more populated by older workers.

The new platform essentially allows employees to choose whatever health benefits they want – leading to more efficient use of benefit dollars, tailored to each employee. Contrast this option to traditional group plans, with only one schedule of benefits set at the time of application.

Furthermore, the new benefits app eliminates mail time. It provides instant claim feedback! As well, members can use the benefits right away – no need to wait for a card. Already have a personal trainer? No problem: Just upload the receipt and get it covered. Yes. It’s that easy.

 

More than just health benefits

The millennial generation is highly focused on illness-preventive measures, as opposed to after-the-fact remedies like drugs. For that reason, health and wellness programs are becoming ever more popular. Companies that implement such programs are seeing a significant decrease in absenteeism; and a marked increase in better morale and productivity. The new benefits platform provides built-in access for employers to coordinate wellness education sessions for employees.

We all know the stats. Healthy and well-informed workers are more productive, miss fewer days of work due to illness, and are less likely to request costly drugs down the road. Employers can jump-start these health advantages for their workforce with a platform such as this new one.

 

Okay, so how much does the new platform cost?

Typically, employers set aside 3-6% of each employee’s salary for a traditional benefits plan. With the new platform, instead of an administrative charge on top of claims, all you pay is a monthly subscription per employee. Furthermore, you have control over the amount of benefits provided. In other words, there will never be a renewal increase.

 

Further reading:

 

Save time, save money, and take control of your benefits! Learn more about this new app for today’s workforce. Contact Immix Group now:

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