There are many distinct terminologies used for benefits. Many of these are recognized by the usage of acronyms. While it can be second nature to the practitioner, it is important to synchronize its meaning for the understanding and well-being of the employee.
In order to effectively communicate the components of benefits, it is imperative to relay the correct information in a way that is comprehensible to the receiver. Otherwise, one can be bound for an unfavorable outcome.
Prodigy HR Consulting can explain such mishaps in the areas of medical and dental plans, life insurance plans, COBRA, HIPAA, FSA/HSA, consumer-driven plans, 401 k, and defined-contribution plans.
On average, small businesses pay about 8 percent to 18 percent more than large firms for the same health insurance plans. According to the National Conference of State Legislatures, health insurers may charge different premiums to small employers based on the employer's industry or the employer's prior health claims. Reference: SHRM – Employers’ Health Costs Could Rise 6% in 2020, August 20, 2019.