Guest Post by George Hearn
Operations Manager/Agent, MRG of Georgia, LLC
Advantages of a healthy workforce
As employers, it’s no secret that the rising cost of healthcare and insurance are affecting companies in many ways. While providing exceptional benefits is paramount for success when it comes to employee satisfaction, employee retention, and employee health; the cost increase is unhealthy for company expense ratios.
As a result, employers are shifting to preventive health programs for employees in an effort to create a healthier population, reduce claim risk exposure, and improve employee morale. These programs are designed to encourage employees to take proactive steps to maintain a healthy lifestyle through the utilization of diagnostic tools such as Health Risk Assessments, DNA testing, and biometric screening. Diagnostics are combined with preventive maintenance services including personal health coaching, educational resources, and in many cases telemedicine services. These services help identify health risks and provide employees with resources for managing them.
Below are a few statistics regarding the current state of health and wellness benefits:
- 59% of employees said that health and wellness benefits are important for increasing loyalty. (MetLife)
- 33% of employees participate in workplace wellness or well-being programs. (Flex+Strategy)
- 68% of employees would increase engagement with their wellness program if there were better incentives. (HealthMine)
- 83% of employers found financial well-being benefits improved performance and productivity among their employees, while 81% saw an improvement in employee morale. (Xerox)
- By 2018, 64% of U.S. employers will focus on developing workplace cultures that support employee well-being as a primary strategy to boost health engagement. (Willis Towers Watson)1
Currently, one of the main challenges for preventive health programs is increasing the level of employee engagement and participation. MRG of Georgia, LLC, a GEA member company, offers a unique product which addresses engagement concerns. It’s called the Proactive Health Management Plan, or PHMP.
How the Proactive Health Management Plan Works
The PHMP provides a preventive health management platform which collects health data (Health Risk Assessment, DNA Testing, Biometric Screenings) and provides a custom tailored preventive health management program for each participating employee with participation benefits including Telephonic Health Coaching, Online Health coaching and education, and 24/7 Telemedicine. When an employee utilizes plan benefits on a monthly basis, an indemnity payment is paid to the employee through payroll. The indemnity payment combines with a Section 125 Cafeteria plan, which allows pre-tax deductions to offset plan administration costs. As a result, there are no net costs to employees who elect to participate in the plan. (Note: Full time salaried employees qualify).
Employers also see financial benefit from the plan by saving up to $450 per employee per year through FICA tax savings via the Section 125 Cafeteria product. It’s a win/win situation. Employers can provide a preventive health management plan which potentially improves the health of their employee population, reduces lost work hours due to illness, and improves employee morale and retention rates. Employees receive an opportunity to live a healthier lifestyle, access to professional health coaches, and telemedicine services. They receive these benefits with no out of pocket costs.
For more information about the Proactive Health Management Plan, contact MRG of GA, LLC at 470-655-1234.
MRG of GA is a licensed Life & Health Insurance Agency located in Duluth, GA. Since 2010, MRG of GA has provided management consulting, insurance services, and net positive ROI programs to employers, organizations, and individuals.
1Carter, Brandon. Employee Benefits and Perks Statistics – The Ultimate Collection, accessperks.com, Nov. 11, 2017.