Because of today’s labor shortage,
more companies are using part-time
and nontraditional (seasonal or temporary) workers to fill the gap. But it takes
more than a good hourly wage to attract
and keep these workers. These people are
now looking for some form of medical,
dental and other insurance coverage.
Part-time and nontraditional employees
historically have been exempt from the
insurance coverage offered to full-time
employees because many businesses have
not wanted to incur the expense of time
and money to manage the coverage.
Options are available that will offer some
basic insurance to uninsured employees of
all kinds with little or no cost to the
employer, says Rick Galardini, CEO of
Pittsburgh-based JRG Advisors.
Smart Business spoke with Galardini
about the alternatives available to help
businesses make sure all of their employees can access insurance.
What are some examples of nontraditional or
uninsured employees?
They can be working part-time in an
office or they can be part of a work force
that is seasonal, such as workers at resorts
or in landscaping. Workers in restaurants,
such as wait staff, often work four to five
hours a day and are not considered full-time. Many nurses in nursing homes also
work part-time. Some workers are just under that 30- to 40-hour workweek, are
not considered full-time and, therefore, not
eligible for benefits.
These examples, although found among
employers of all sizes and industries, are
particularly noted with small or start-up
companies that simply cannot afford to
insure their employees, whether considered full-time, part-time or nontraditional.
What kinds of insurance can businesses offer
their uninsured full-time, part-time or non-traditional workers?
Medical, dental, vision, disability, life insurance, and accidental death and dismemberment insurance all can be offered.
‘Worksite’ products are popular because
employees can choose from a variety of
insurance plans right at the work place, and
because they are less expensive than traditional group insurance. Worksite products
are not full-blown insurance, and insurance companies do not pretend that they
are. But they provide some coverage that
will help the employees in case they are
hospitalized, need to go to the doctor or
need dental work.
What is the employer’s role in providing
worksite insurance products? And what is the
benefit to the business?
The employer can pay for whatever portion of the premium it wants — or none of
it. Employees pick the type of insurance
they want from a menu of plans. There is a
payroll deduction from the employee’s paycheck, pretax. It’s all managed using software or an online Web site provided by the
insurance company.
The benefit to the employer is the ability
to offer affordable coverage to its uninsured employees, which helps attract and
retain all employees. Additionally, employees go directly to the broker or insurance
company for benefits questions or concerns, keeping the employer out of the
human resources game.
And what is the benefit to the uninsured full-time, part-time or nontraditional employee?
Given the option of having no insurance
or some insurance, many employees will
take the latter. It is a comfort for these
working employees, who are a big percentage of our uninsured population, to have
an insurance card in their wallet. There is
also an element of dignity involved in having insurance, as opposed to being completely uninsured.
RICK GALARDINI is the CEO of JRG Advisors. Reach Galardini
at (412) 456-7013 or [email protected].