Category Archives: featured

Balancing Benefits and Wages: How Rising Healthcare Costs Impact Small Business Strategies

pharmacist working With healthcare costs climbing, small business owners are navigating difficult choices between competitive wages and sustainable benefits plans.

In today’s challenging business environment, healthcare costs are becoming an increasingly difficult hurdle for small business owners. A recent study, the *2024 “Pulse of the Purchaser” survey* by the National Alliance of Healthcare Purchaser Coalitions, highlights how the rising costs of healthcare are affecting employers’ ability to offer wage increases, and this impact is especially significant for small businesses. As you work to build competitive employee benefits plans, it’s crucial to weigh the tough decisions you may face regarding costs, salaries, and overall business sustainability.

The study revealed that a staggering 74% of employers feel healthcare costs directly force trade-offs with wage or salary increases. For small businesses already working with limited budgets, this can lead to difficult choices: how to keep benefits attractive without compromising on wages that retain skilled employees.

Here’s a closer look at what’s driving healthcare costs:

Prescription Drug Prices: According to the survey, 99% of employers view rising drug costs as a significant threat to affordability. For small businesses, adjusting formularies to include more affordable, generic options or leveraging biosimilars can help offset these costs. Additionally, transparent pharmacy benefit managers (PBMs) may provide small businesses with more control over costs by offering clear contracting and pricing.

High-Cost Claims and Hospital Expenses: High-cost claims are another significant concern, with 84% of employers noting their impact. Options like enhanced screening programs and promoting early detection can help reduce high-cost claims in the long term. For small businesses, partnering with healthcare provider networks that emphasize preventive care or offering managed disease programs through their insurer can help mitigate risks associated with high-cost claims.

With 72% of the survey’s employers indirectly tied to the “big three” PBMs—CVS Caremark, Express Scripts, or Optum Rx—through their fully self insured plans, its hard for them directly to impact the delivery of prescriptions. This year we are seeing a significant disruption in the ways that insurance plans are distributing drugs, with the Amazon Blue Shield collaboration as a prime example of the changes in RX delivery.

Unfortunately, there are few tools that small employers can use to directly impact the actual claims. Large carrier network reimbursements are key to driving down costs and ultimately premiums.

For small businesses in Los Angeles, the balance between providing competitive compensation and sustainable healthcare benefits can be critical for long-term success. According to the survey, rising costs in healthcare have made benefits not just a financial issue but a “survival” issue for businesses. Exploring flexible benefits options and building sustainable health and wellness programs are two impactful strategies for supporting your team without overextending your budget.

In navigating these challenges, working closely with a your CorpStrat benefits advisor can also make a significant difference. By helping you identify practical solutions to control healthcare costs, they can be a valuable partner in balancing cost control with your business’s retention and recruitment goals.

With the right strategies, small businesses can continue to thrive by providing meaningful benefits that support their employees’ well-being, while managing costs effectively.

Prepare for Success: A Year-End Guide to Estate Planning, Insurance, Financial Organization, & Cleanups

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two colleagues meeting and planning

As the year is quickly coming to a close, it’s the perfect time to reflect on your business and personal financial goals and set the stage for a successful 2025. Year-end planning is crucial not only for assessing the progress you’ve made, but also for taking steps to ensure that next year starts off on the right foot.

A well-thought-out strategy that includes estate planning, insurance reviews, and financial assessments can help you streamline your affairs and create a solid financial foundation for the future.

Estate Planning

One of the first areas to address is your estate planning. If you haven’t already reviewed make sure your will, trust, and other estate documents are up to date. This ensures that your assets will be distributed according to your wishes and that you’ve designated trusted individuals to manage your affairs in the event of an emergency. It’s a good time to meet with your estate planning attorney to review any changes in your family or financial situation and make sure your estate plan reflects your current wishes.

Insurance Coverage

Next, review your insurance coverages. This includes life insurance, health insurance, long-term care, and business policies. Make sure they align with both your personal and business goals. As your business grows, so do your insurance needs. Evaluate whether your current coverage is sufficient for protecting your assets, employees, and loved ones. Year-end is the ideal time to meet with your insurance advisors to ensure that you are well-positioned for the coming year.

Financial Organization

Finally, take a broader view of your business and financial health: Organize all your financial documents, revisit your budget, and assess your investments. Meet with your financial advisor to ensure you’re on track for retirement, and take this time to clean up any loose ends in your business. This could include addressing outstanding debts, reviewing contracts, or reassessing your business operations for efficiency. By doing this, you’ll enter 2025 with a clear vision of your financial goals and a solid plan to achieve them. Set your goals high!!!

In summary, year-end planning is an opportunity to make progress on your 2024 goals while ensuring your affairs are in order. Taking the time to meet with your estate planner, insurance advisor, and financial advisor now will allow you to start the new year with confidence and a renewed focus on growth and stability.

Reach out to us at #CorpStrat for a referral to a professional if you don’t have one.

Why Long-Term Care Insurance is the Employee Benefit You’re Probably Overlooking

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As an employer, you’re likely offering a range of benefits to attract and retain top talent: health insurance, retirement plans, and perhaps some voluntary perks.

But there’s one critical benefit that many employers are overlooking: long-term care insurance (LTC). This relatively new offering can be a game-changer, not just for your employees but also for your business.

What is Long-Term Care Insurance?

Long-term care insurance provides financial support for individuals who need assistance with daily living activities due to aging, chronic illness, or disability. It covers care received at home, in assisted living facilities, or nursing homes, which are not typically covered by regular health insurance or Medicare.

Why Should You Offer It?

1. Growing Demand
As life expectancy increases, so does the need for long-term care. Yet, few people are prepared for the significant costs associated with it. Offering LTC insurance addresses a growing concern among employees, especially those with aging parents or their own health considerations.

2. Voluntary or Employer-Sponsored Options
This product is flexible. It can be offered as a voluntary benefit, allowing employees to opt in if they choose. Alternatively, you can sponsor the plan fully or partially for a select class of employees, giving you control over the costs while enhancing your benefits package.

3. Guaranteed Acceptance
One of the most appealing aspects for employees with health concerns is that long-term care insurance may offer guaranteed acceptance. This means that even if an individual has pre-existing health conditions, they can still obtain coverage, which is often not the case with individual policies.

Offering long-term care insurance not only provides financial protection for your employees but also enhances your company’s benefits package, helping you stand out in the competitive job market. By adding LTC to your benefits suite, you’re showing your employees that you care about their long-term well-being—not just their immediate health.

If you’re not offering this benefit yet, now is the time to consider it. Reach out to us at CorpStrat to explore how employer sponsored long-term care insurance can fit into your overall employee benefits strategy.

Effective Strategies for Communicating Employee Benefit Plans to Your Team

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business team meeting in corporate office

As we move into 2025, many companies are already in the midst of their renewal periods, making it a crucial time to communicate the full value of employee benefits to your team.

Open enrollment isn’t just a time for employees to select their benefits—it’s an opportunity to reinforce the value of your overall benefits package and make sure employees understand the benefits available to them.

Employee benefits remain a key component of any company’s compensation structure, directly impacting employee satisfaction, retention, and the overall work culture. However, the value of these benefits can only be fully realized when communicated effectively. A strategic communication plan ensures your team knows how to navigate their benefits, use them wisely, and feel supported by their organization.

Here are some top strategies to communicate employee benefits effectively:

1. Tailor Communication to Employee Segments

With companies in the middle of renewals, it’s especially important to avoid the trap of a one-size-fits-all approach. Tailor your messages to address the unique needs of different employee groups. Consider dividing employees based on job roles, demographics, or life stages. This segmentation allows you to deliver targeted information that speaks directly to each group’s specific concerns, ensuring your message is more relevant and impactful.

2. Provide Clear and Easily Accessible Information

Amidst the open enrollment period, employees are making important decisions about their benefits. Ensure they have access to clear, concise, and jargon-free information. Keep all resources in an easily accessible location, like an intranet portal or benefits hub, so employees can revisit the materials as needed. Adding step-by-step guides and FAQs can also help simplify the decision-making process, giving employees confidence in their choices.

3. Use Multiple Communication Channels

Not everyone engages with information in the same way, especially during the busy renewal period. To maximize reach, use a variety of communication channels such as emails, internal newsletters, intranet posts, and virtual meetings. Incorporate visual aids like infographics or short videos to break down complex information in an engaging and digestible format.

4. Maintain Ongoing Communication Beyond Open Enrollment

While open enrollment is a natural focal point, your communication efforts shouldn’t stop there. Keep the conversation going by regularly reminding employees of their benefits throughout the year. Share stories that highlight the real-world impact of using the benefits, and provide updates on any plan changes. Consistent communication will keep your benefits top-of-mind and help employees feel valued year-round.

5. Host Live Q&A Sessions and Webinars

Especially during renewal season, employees will have questions about their benefits. Hosting interactive Q&A sessions or webinars provides employees with a platform to ask questions and get direct answers. This can help reduce confusion and encourage more informed decision-making. It’s also a great way to create an open dialogue, allowing employees to feel more connected to the benefits process.

6. Involve Leadership in the Communication Process

When leadership is visibly involved in the benefits discussion, it reinforces the importance of these programs. Encourage managers and senior leaders to actively participate in conversations about employee benefits during one-on-one meetings or team discussions. This top-down approach signals to employees that the company truly values their well-being.

Providing competitive employee benefit plans is critical, but ensuring effective communication around those benefits is equally essential. As your company navigates this renewal season, focus on clear, consistent, and targeted communication to help your employees make informed decisions and feel supported. This will not only strengthen your organizational culture but also lead to a more engaged and loyal workforce.

If you have any questions or need support during this open enrollment period, please feel free to reach out to us.

7 Signs Your Company Needs an Employee Benefits Audit

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Are you wondering if your Employee Benefits plan is truly hitting the mark? It’s time to reconsider how you approach delivering employee benefits. Year after year, many businesses let their employee benefits package remain unchanged. This means they’re offering tired, unattractive benefits that don’t compete well in today’s job market.

But here’s the kicker: if this sounds familiar, you might be missing out big time. That’s where our Employee Benefits Audit comes in.

What exactly is an Employee Benefits audit?

An Employee Benefits audit is your ticket to a benefits package that not only meets but exceeds your employees’ expectations. We’ll dive deep into your current offerings, ensuring they’re tailored just right for your unique needs and the needs of your team.

Now, change can be daunting. But with the incredible technology available today, it’s worth it to shake things up a bit. And don’t worry, we’ll be right there beside you, guiding you through every step of the process.

All Pros, No Cons

And the best part? When you invest in an Employee Benefits Audit, it’s all pros and no cons. Either we uncover ways to save you money and enhance your benefits package, or we confirm that your plan is already top-notch. It’s a win-win situation for you and your team.

So, what are the signs that your company needs an Employee Benefits Audit? Here are our top seven signs:

High Employee Turnover: If your turnover rate is higher than industry average, it could indicate dissatisfaction with your benefits package.
Employee Dissatisfaction: If employees frequently express discontent with their benefits, it’s time to reassess.
Decline in Morale and Engagement: Notice a lack of enthusiasm? Your benefits package could be a contributing factor.
Company Growth or Demographic Changes: Changes in workforce size or composition may necessitate adjustments to your benefits.
Competitive Pressure: If competitors offer more attractive benefits, you risk losing talent to them.
Compliance Concerns: Encountering compliance issues? Your benefits package may not be up to snuff.
Alignment with Company Goals: Unsure if your benefits package supports your long-term objectives? It’s time for a review.

If any of these signs resonate, it’s time to act. Let’s work together to craft a benefits plan that exceeds your wildest expectations.

Your employees deserve the absolute best, and with our Employee Benefits Audit, you can give it to them. Don’t settle for mediocrity—contact us today for a free consultation and let’s make it happen!