Determining the Cost of Employee Benefits on the Chambers Plan
February 8th 2024
When it comes to offering employee benefits with the Chambers Plan, one of the most common questions employers have is, "What will it cost?" At Morgan Insurance Services Corporation, we understand that this question is crucial for businesses of all sizes, as it directly impacts financial planning and employee satisfaction. However, providing a one-size-fits-all answer is challenging due to the complexity and variability of employee benefits plans. Here, we'll explore the primary factors that influence the cost of employee benefits, shedding light on why monthly premium rates can differ significantly from one business to another.
The Impact of Employee Roster Size
The first factor to consider is the size of your employee roster. Since rates are calculated per person, the number of employees you have plays a significant role in determining your monthly premium rates. A business with a larger employee base, say 50 employees, will naturally have a higher total monthly premium compared to a smaller business with only 5 employees. This is because the risk and cost are spread across a larger group in larger businesses, impacting the overall rate.
Employee Class and Coverage Type
Another crucial factor is the employee class and the type of coverage they opt for. Employee benefits plans are not one-size-fits-all, and the rates can vary significantly based on whether an employee requires single coverage or family coverage. For instance, a plan that covers an employee, their spouse, and three children will be more costly than a single coverage plan due to the increased risk and potential for claims. This differentiation allows for flexibility and customization of plans to meet the diverse needs of employees but also affects the overall cost of the benefits package.
Coverage Tier and Plan Extensiveness
Lastly, the specific coverage tier and the extensiveness of the plan selected play a pivotal role in determining the cost. For example, a benefits plan with extensive dental coverage, offering a wide range of dental procedures and high coverage limits, will come with a higher monthly premium than a plan with minimal dental coverage. Similarly, a plan that provides a higher percentage of drug coverage compared to one with lower coverage levels will also be more expensive. These variations allow businesses to tailor their benefits offerings to their budget and their employees' needs, but they also contribute to the complexity of determining a standard cost for employee benefits.
Conclusion
At Morgan Insurance Services Corporation, we recognize that navigating the cost of employee benefits can be complex. However, by understanding these key factors—the size of your employee roster, the class of coverage, and the coverage tier—you can better anticipate the costs involved and make informed decisions that benefit both your business and your employees. Our team provides The Chambers Plan to businesses in the BC Interior and is dedicated to providing personalized advice and support to help you find the right balance between comprehensive coverage and cost-effectiveness. For more detailed guidance tailored to your specific needs, reach out to us!
Remember, investing in a robust employee benefits plan is not just about the costs. It's about attracting and retaining the best talent, fostering a positive workplace environment, and ultimately, contributing to the success and growth of your business.