Costco Connection - November 2005

inside
costco

Say “ahhh”

Good reasons for providing

health plans for employees

By Tim Talevich

EVERY FIVE YEARS, the National Federation of ance, according to the survey.

in^Hs^eu^ar^la^thnce and Costco

Independent Business (NFIB) publishes a report • It helps employee recruitment. Offering that lists the top problems facing small busi- access to health insurance can be a big entice-nesses, based on a poll of the organization’s mem- ment for prospective employees. bers. The number-one concern for the past 20 Also, some employers reported that employees years has been the same: the crippling cost of will accept slightly lower wages if health insurance health insurance. is provided. And in terms of taxes, employees can

“There is no problem that creates more emo- benefit by paying premiums directly from their tion than the rising cost of health insurance,” the paychecks, while employers can write off some report states. insurance expenses.

What’s a business owner to do? While some Providing a health insurance plan is a matter of small companies choose to drop employee health- protecting one of a company’s most vital assets—its insurance plans, there are many strategic reasons to employees, says Jamie Amaral, national director of keep them, experts advise. And smart companies can health, research and development for the NFIB find ways to keep costs as low as possible (see sidebar ( www.NFIB.com ). It’s expensive and time-con-story,“Health insurance and Costco”). suming to hire and train employees, so it only

According to the Health Coverage Guide makes sense to work to keep them.

( www.HealthCoverageGuide.org), published by the “Small businesses have to compete with large California HealthCare Foundation, a survey of small- companies for the best employees,” says Amaral. business owners found that offering health insurance “Finding employees—and keeping them—is a for their employees has several key benefits. huge challenge.”

• It reduces absenteeism and decreases risks That’s the case with the Seattle Thunderbirds associated with poor health in the long run. Hockey Club,aprofessionalminor-leaguehockey When employees don’t have health insurance they team. The company offers a health-insurance wait longer to seek treatment, which can lead to the program, purchased through Costco, to its 13 need to stay home from work or go out on disability, office employees. the survey found. Healthy employees are less likely to “As a philosophy for our company, it’s impor-injure themselves and more likely to do their jobs well. tant to give our employees a well-rounded benefit

• It improves office atmosphere and morale. package to keep people wanting to stay with us,” Employees tend to be happier and more satisfied explains Colin Campbell, the team’s vice president. with their jobs when they are offered group insur- “Our employees are important to us.” C

Colin Campbell says the Seattle Thunderbirds Hockey Club scores with an employee health-insurance program purchased through Costco.

LARR Y GILL

COSTCO HAS teamed up with leading insurance companies to offer small-business health-insurance plans to Executive Members in California, Oregon, Hawaii, Nevada and Washington. (In Nevada and Washington, some rural counties aren’t covered.) The programs offer a range of options to meet different needs.

Recently added to the program are high-deductible health plans (health savings account qualified) in Washington, Oregon and Nevada.

The key features are:

Affordable rates.

Costco’s buying power allows it to negotiate competitive rates from health-care insurers.

Quality. The service features a comprehensive network of hospitals and physicians that meet high standards of care.

Service. The program has a dedicated sales and service team to support participants.

Signing up is easy. Go to costco.com, click “Services,” then “Health Insurance.” Coverage information is provided on the Web site. To get an instant quote, just fill in the online forms.

Also, maintaining the account, such as adding employees and billing, is done online.

“In true Costco fashion, we’re trying to simplify the process and give our members the best value,” says Dellanie Fragnoli, who oversees the program for Costco.