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  • Affordable Care Act (ACA) reporting is a yearly responsibility that can feel increasingly complex, especially as rules, thresholds, and penalties continue to change. For the 2026 ACA reporting season, which covers the 2025 calendar year, Applicable Large Employers (ALEs) must prepare for updated affordability standards, rising penalties, and new options for delivering required forms to employees. 

    Understanding what is due, what has changed, and how to streamline the process can help employers stay compliant and avoid costly mistakes. 

    What’s Due for the 2026 ACA Reporting Season 

    Employers classified as ALEs are required to report health coverage information to both employees and the Internal Revenue Service (IRS) using Forms 1094-C and 1095-C. 

    Here are the key deadlines for the 2026 reporting year: 

    Form 1095-C to employees 
     
    Must be furnished to full-time employees by March 2, 2026. This form outlines the health coverage that was offered during the 2025 calendar year. 

    Forms 1094-C and 1095-C to the IRS 
     
    Electronic filings are due by March 31, 2026. 

    Electronic filing requirement 
     
    Employers filing 10 or more information returns must submit forms electronically, per IRS requirements. 

    Missing deadlines or filing incorrect information can result in significant penalties, making accuracy and preparation critical. 

    What’s Changed for ACA Reporting in 2026 

    Several notable updates will affect how employers approach ACA compliance for this reporting cycle. 

    Higher affordability threshold 

    The IRS has increased the ACA affordability percentage to 9.96 percent, up from 9.02 percent in 2025. This percentage determines whether an employer’s lowest-cost, self-only coverage option is considered affordable for employees. 

    While the higher threshold provides more flexibility for employer contributions, it still requires careful calculations and documentation to maintain compliance. 

    Increased penalties for non-compliance 

    ACA penalties continue to rise. Projected Employer Shared Responsibility Payment amounts include: 

    • Section 4980H(a) penalties exceeding $3,340 per employee, after the first 30 employees, for failing to offer coverage. 
    • Section 4980H(b) penalties exceeding $5,010 per affected employee for offering coverage that is unaffordable or does not meet minimum value. 

    These increases heighten the need for accurate tracking, reporting, and timely coverage. 

    New alternative furnishing method 

    For the first time, employers may use an Alternative Furnishing Method instead of mailing paper copies of Form 1095-C. Employers can post a clear and accessible notice on their website explaining how employees can obtain their form. 

    The notice must be easy to find and remain available through October 15, 2026. When implemented correctly, this option can significantly reduce printing and mailing costs. 

    Potential impact of expiring subsidies 

    Enhanced premium subsidies are scheduled to expire, which could result in more employees seeking coverage through the Health Insurance Marketplace. This may increase the likelihood of employer penalty notices, making accurate ACA reporting and coverage offers even more important. 

    How Employers Can Simplify ACA Reporting 

    As requirements expand and penalties rise, simplification is key. Employers can take several steps to reduce risk and administrative burden. 

    Leverage technology and automation 

    ACA reporting software can help track employee hours, monitor eligibility, generate forms, and flag potential issues before deadlines arrive. Automation reduces manual errors and saves time during the reporting season. 

    Use IRS safe harbors 

    Applying one of the IRS affordability safe harbors can simplify calculations and provide added protection. Employers may use the Form W-2, Rate of Pay, or Federal Poverty Line safe harbor to demonstrate affordability without relying on household income data. 

    Monitor eligibility throughout the year 

    Waiting until the end of the year can lead to compliance gaps. Regularly reviewing employee classifications, especially for variable-hour and seasonal employees, helps ensure coverage is offered to at least 95% of full-time employees, which is critical for avoiding the most severe penalties. 

    Take advantage of digital delivery options 

    The new electronic furnishing method provides an opportunity to streamline distribution while remaining compliant. Employers must comply with IRS visibility and accessibility requirements, but when implemented correctly, this option can simplify administration and reduce costs. 

    How GMS Helps Employers Stay ACA Compliant 

    ACA reporting is just one piece of a much larger compliance puzzle. At Group Management Services (GMS), we help employers manage ACA requirements with confidence through expert guidance, technology-driven tracking, and end-to-end reporting support. 

    From monitoring employee eligibility and applying affordability safe harbors to preparing and filing required forms accurately and on time, GMS helps businesses reduce risk and stay focused on growth. 

    If ACA reporting feels overwhelming or if you want a more efficient approach for 2026 and beyond, GMS is here to help. 

  • Although health care costs are continually rising in today’s economy, the importance of offering health care and health benefits cannot be overstated. Employee health benefits have shifted from being a bonus to a fundamental requirement, no longer seen as a luxury but an essential part of a job.  Therefore, employers who invest in comprehensive, high-quality health benefits for their employees often see higher productivity, loyalty, and morale, all of which contribute to a company’s long-term success.  

    In recent years, a growing number of companies have begun offering a greater variety of health benefits to their employees. However, many still wonder what benefits they should offer and wonder how much health care offerings can really contribute to employee satisfaction, engagement, and productivity. Continue reading to discover how health benefits contribute to employee performance and what benefits are among the most popular. 

    What Are Health Care Benefits?

    Health care benefits are medical services and items that are covered by an insurance plan. This can include doctors’ visits, access to certain medications, hospital care, and more. Employers offer insurance plans to their employees to help pay for these expenses and treatments. Employers provide insurance plans to help their employees manage these expenses and treatments. While the Affordable Care Act (ACA) has certain requirements about what employers should offer, the plan type and extent of coverage vary by employer.  

    How Health Benefits Impact Productivity and Performance 

    Access to quality health benefits has a significant impact on employee performance in several ways. Companies that offer health benefits report that their employees are over one and a half times more productive and more likely to remain loyal to the organization. Higher productivity can manifest differently in various industries; for manufacturers, it may mean increased output, for entrepreneurs, it can translate to higher sales, and for construction workers, it might involve taking on more bids and jobs. 

    When employees have access to preventive care, can manage chronic conditions, and seek timely medical attention, they are less likely to miss work due to illness or injury. Benefits such as telemedicine, disability coverage, and wellness programs empower employees to address health concerns early, which reduces absenteeism and minimizes downtime. Furthermore, employees who feel physically and mentally supported can concentrate better on their work. Reduced stress related to medical costs or access to care enables employees to be more consistent and focused, ultimately leading to improved performance across teams. 

    Employee Engagement and Success 

    Robust health benefits play a significant role in employee morale. When workers feel that their employer genuinely cares about their health, it fosters increased trust and loyalty. Benefits packages that extend beyond basic medical coverage, such as dental, vision, and mental health support, signal that the organization values employees as individuals, not just as workers. 

    This sense of support strengthens engagement and creates a positive workplace culture. Employees who are satisfied with their benefits are more likely to advocate for their employer, collaborate effectively, and stay motivated. Over time, this results in lower turnover.  

    Popular Health Benefits Employees Want

    Recently, employees have been flocking to companies that promote flexibility and employee health. The workforce wants a job that offers schedule flexibility, comprehensive health coverage, and future career growth opportunities. For employers, this can look like offering: 

    Dental and Vision Coverage 

    Dental and vision benefits help employees maintain overall wellness while addressing everyday care needs. Offering vision and dental benefits can reduce health care costs through preventative care and provide your employees with access to medical professionals. These benefits are common among health care plans because of the diverse benefits they provide and the wide range of employees who utilize and need this type of care.

    Access to an HSA or FSA

    Offering a Health Savings Account (HSA) or a Flexible Spending Account (FSA) is beneficial to the employer and employee. The employee receives access to medical services and products at a lower cost through their employer’s plan. Both accounts offer tax-free contributions and withdrawals for qualified costs, but each have their own advantages depending on the individual’s needs. The employer enjoys lower payroll taxes and showcases their dedication to employee well-being.  

    Telemedicine Services 

    Telemedicine provides employees with convenient access to health care professionals, reducing the time and cost associated with traditional office visits. This gives the employer and employee time back by missing out on the travel and wait time associated with visits. Telemedicine can also reduce appointment stress for employees, as they don’t have to worry about timing, traffic, or any surprises as they head to their appointment, improving their focus and productivity. This flexibility supports faster care, fewer missed work hours, and improved work-life balance. 

    Retirement Plans 

    A great way to recruit and retain employees is through offering a retirement plan. This allows employees to invest in themselves and focus on their financial future, allowing them to be more focused and productive at work. Employers can choose a plan that works best for them and can decide how large of a contribution they want to make to their employees’ plan. This allows for greater flexibility for the employer and better financial security for the employee.  

    Health Care Plans and GMS

    Robust health benefits are a powerful investment in employees and the long-term success of your company. By supporting physical, mental, and financial well-being, employers can boost productivity, strengthen morale, and improve employee loyalty. While offering health benefits to your employees is an attractive option, it’s a complex and confusing process. 

    That’s where a third-party administrator like Group Management Services (GMS) can help. With our benefits administration services, we help business owners with their health care plans, supplemental insurance offerings, and retirement plans. We also offer ACA support, consolidated billing, and in-house claims processing. With GMS, we work to simplify benefits administration as much as possible, holding your hand every step of the way. Our offerings are cost-effective and can contribute to your bottom line and your long-term growth.  

    Discover more about our benefits administration services here! 

  • As the new year approaches and labor market fluctuations continue, it’s more important than ever for business owners to focus on improving employee retention and implementing wellness initiatives. Employee retention rates and wellness policies often go hand in hand; prioritizing employee wellness can lead to better retention and increased loyalty. 

    Essentially, the more you prioritize your employees and their happiness, the more likely they are to engage at work and remain with the company long-term. A great way to prioritize employee wellness and retention is by investing in benefits and offering health care plans. Continue reading to discover more about what benefits business owners should provide and how they can benefit your employees and company.  

    The Advantages of Offering Employee Benefits 

    Recruitment 

    One of the greatest advantages of offering your employees robust benefits is that it makes your company more attractive to potential employees. People want to work for a company that genuinely cares about them and provides them with access to resources that can improve their lives. According to Aflac, 77% of organizations that offer supplemental insurance report that it helps with recruitment efforts. By offering employee benefit plans, business owners can attract top talent, helping them achieve business growth and success.  

    Retention 

    Given the uncertainty in the labor market and the economy, retaining top talent can be challenging. Retaining your current workforce not only improves operational efficiency but also reduces recruitment and hiring costs. Offering employee benefits plans is one of the most effective strategies for improving employee retention. When organizations provide comprehensive benefits, they show their employees that their long-term health, security, and well-being matter. This support fosters loyalty, making employees less likely to seek opportunities elsewhere. In a competitive job market, strong benefits packages can differentiate a company, turning satisfied employees into long-term team members and advocates for the organization. 

    Trust and productivity 

    Offering employee benefit plans can significantly boost productivity and trust within an organization. When employees feel secure about their health, finances, and overall well-being, they are less distracted by personal worries and more focused on their work. Benefits such as health insurance, retirement plans, and wellness programs demonstrate that the company values its workforce, fostering a deeper sense of loyalty and commitment. This trust develops greater engagement, reduces turnover, and creates a stronger workplace culture and long-term organizational success. 

    Employee Benefits That Make a Difference 

    Health Insurance 

    Health insurance plans are the most critical benefit for employees. They provide peace of mind and ensure access to necessary medical care, reducing stress and improving overall well-being. For employers, healthier employees mean fewer sick days and higher productivity. Offering comprehensive health coverage demonstrates that you care about your team’s health and financial security. Employers should also consider offering access to supplemental benefits plans, including dental, vision, and disability insurance. This enables employers to tailor their health benefits to meet the specific needs of their employees.  

    Retirement Plan

    Retirement plans, such as a 401(k) with employer matching, are another top priority for employees. These plans help employees plan for their future and build financial stability. Employers are able to match employee contributions, effectively adding to the employee’s nest egg. When employers contribute to retirement savings, it shows a long-term commitment to their workforce, which fosters loyalty and reduces turnover. Additionally, employer contributions are often tax-deductible, making this a smart financial move for businesses. 

    Paid Time Off (PTO) 

    Paid time off is essential for maintaining work-life balance. Employees need time to recharge, and when they do, they return more focused and productive. PTO also signals that your company values mental health and personal time, which is increasingly important in today’s workplace culture.

    Work From Home 

    Flexibility is an increasingly important perk that employees look for in a role and with a company. Providing resources that give your employees the ability to exercise work-life balance highlights your company’s dedication to employee health and happiness. By developing policies for work-from-home days or flexible scheduling, you’re investing in your employees and their long-term employment.  

    Mental Health Support

    Mental health is just as important as physical health. Providing access to counseling services, therapy sessions, or Employee Assistance Programs (EAPs) helps employees manage stress and maintain emotional well-being. This leads to higher morale, better focus, and reduced burnout. 

    Streamlined Benefits 

    Offering employee benefits is not just about compliance or perks—it’s about building a thriving, loyal workforce that drives your business forward. By investing in benefits, you invest in your people, and ultimately, in your company’s success. There are a myriad of benefits and health insurance plans to offer your employees, but enrollment and employee education can be overwhelming for business owners.  

    Luckily, there are companies like Group Management Services (GMS) that can assist companies with benefits administration, health care plans, and supplemental benefits. As a professional employer organization (PEO), we help you offer cost-effective, high-quality benefits that can compete with those of larger companies, all while saving you time and money. By partnering with GMS, you receive streamlined, all-in-one employee benefits solutions. Learn more about our offerings here!  

  • As the cost of living and health care rates increase, so does the need for financial support and wellness among employees. Across all industries, the workforce is demanding better benefits and perks, specifically those that focus on lowering premiums, offering stipends, and providing cost savings. The lack of financial support, combined with the skyrocketing everyday costs, is causing a rising wave of stress and uncertainty among the population, leaving individuals searching for a viable solution.  

    As an employer, it’s important to provide resources and tools that promote your employees’ health and wellness, both in and out of the workplace. While there are many ways to support your employees during this time of economic uncertainty, selecting the most impactful solution can be challenging. Continue reading to learn how you can support your employees’ financial well-being. 

    Financial Well-Being 

    Financial wellness refers to the ability to comfortably meet your current financial obligations and expenses. In other words, it means having financial freedom to live your life to the fullest. Although financial wellness may look different for each individual, it offers similar benefits for everyone. Achieving financial wellness can lead to various positive outcomes, including: 

    • Improved mental and physical health
      • Financial concerns and uncertainty can cause stress, depression, hypertension, and sleeplessness. With greater financial stability, people often have lower anxiety, leading to more energy and mental clarity.  
    • Flexibility and confidence
      • Financially stable individuals have more flexibility and confidence in their purchasing choices.
    • Long-term stability
      • With access to greater funds, individuals can invest in their long-term health and financial future. They can invest more money in their retirement, focusing on long-term care and longevity.  

    When an employee is financially stable, they contribute more to your company, offering you a myriad of benefits, including: 

    • Greater engagement and productivity 
      • When employees are financially secure, they can concentrate more on their work and perform their responsibilities with greater care and intention, reducing mistakes and improving overall efficiency. 
    • Increased retention 
      • If an employer offers a great salary and financial wellness programs, they are showcasing their loyalty and dedication to their employees’ well-being. The more you invest in your workforce, the more likely they will stay.  
    • Stronger company culture
      • When employees are financially secure and receive support from their employer, they tend to be more committed to their jobs and demonstrate greater loyalty to their company. When an employer prioritizes employee safety and well-being, it fosters a stronger sense of trust. 

    Ways to Improve Employee Financial Wellness 

    As stated previously, employee financial wellness is incredibly important for your workforce and your company. Prioritizing financial wellness improves productivity, efficiency, loyalty, and morale. But what policies should you implement to promote financial stability?  

    Provide a retirement plan 

    While there are a variety of retirement plans employers can offer, each one provides a resource for future financial planning. Whether you match an employee’s contribution or just offer the plan, you’re granting employees access to a retirement plan and leading them one step closer to long-term stability. 

    View the table below to see the 2025 and 2026 contribution limits set by the Internal Revenue Service. 

    Plan Type 2025 Limit 2026 Limit 
    401(k), 403(b), 457, TSP $23,500 $24,500 
    IRA $7,000 $7,500 
    Catch-up (Age 50+) $7,500 $8,000 
    IRA Catch-up (Age 50+) $1,000 $1,100 

    Offer financial education 

    In order for someone to be financially stable, they must understand what it means and how to achieve it. Conduct workshops, host webinars, or hold meetings centered around debt management, retirement planning, budgeting, and more to help your workforce gain a deeper understanding of financial best practices.  

    Offer earned wage access (EWA) 

    Earned wage access (EWA) allows employees to access a portion of their earned wages before their payday. Employees usually use this program to help pay for immediate expenses like credit card bills or rent. An EWA program reduces stress, increases productivity, and promotes financial stability among the workforce. 

    Offer a group health care plan 

    Help your employees battle rising health care and prescription drug costs by offering a group health plan. With a group plan, you can leverage group buying power, providing access to benefits that smaller companies usually cannot afford. Group health plans expand benefit plan options and reduce premiums.  

    The Key to Financial Wellness: Group Management Services 

    Achieving financial stability is a daunting task as an individual, but as a business owner managing multiple people, it can seem impossible. But with a professional partner like Group Management Services (GMS), achieving financial stability and providing support is possible. 

    With GMS’ Master Health Plan, we can offer customizable group health coverage plans with affordable rates, lower premiums, and a variety of supplemental insurance options. This can save you an average of 24% on employee premiums and 15% on family plans.  

    GMS’ team of experts can also develop training and presentations for your team on financial best practices, budgeting, and more. GMS can help you support your employees’ financial health through our supplemental insurance offerings, 401(k) plans, and beyond. 

    Contact us to learn more about how GMS can support the financial wellness of your workforce! 

  • Open enrollment is a busy time for individuals with health insurance plans. Although the specific dates vary depending on the type of insurance, the state, and the employer, the overall process remains consistent. Open enrollment is the time when people can enroll in, update, change, or cancel their health insurance.  

    Many individuals enroll in a health insurance plan through their employer, which reduces the financial burden of health care costs such as doctor’s visits, medications, and more. It’s important to note that you cannot make changes to your health insurance plan outside of the open enrollment period unless you qualify for a special enrollment period. 

    Special Enrollment Periods 

    Whether you’re an employer or an employee, it’s important to understand special enrollment periods and what they entail. 

    Open enrollment is the only period for making changes to your health insurance. However, if you experience a qualifying life event, you can make these changes through a special enrollment period. Qualifying life events (QLE) are events that change your everyday life, such as getting married, losing your job, having a child, and more. QLEs include, but aren’t limited to the following:

    • Getting married, divorced, or separated
    • The death of a spouse or family member who shared your health plan
    • Having or adopting a child
    • Turning 26
    • A change in employment, leading to the loss of coverage
    • Moving your residence
    • See a list of other QLEs 

    While it is most common for people to qualify for a special enrollment period due to a QLE, several other situations may qualify someone for a special enrollment period. Such as: 

    • Becoming a United States citizen
    • Leaving incarceration
    • Experiencing a natural disaster such as an earthquake, hurricane, etc.
    • Learn more here 

    Assistance with Managing Enrollment Periods

    Open enrollment can already be a stressful and confusing time, but for employers, that stress can reach new heights. Managing different health insurance plans and costs can quickly become overwhelming, especially since all changes happen within that specific time frame. Employers also must be aware of employees who need to make health insurance changes during special enrollment periods and consistently review their current offerings to make the most cost-effective decision for their employees and company. Managing these changes is no easy feat, which is why business owners may look for assistance from a third-party company like Group Management Services (GMS).  

    GMS helps business owners manage open and special enrollment periods with our expert guidance, the help of a Benefits Account Manager, access to competitive group health plans, and administrative benefit support. GMS also offers business owners access to supplemental benefits, effectively reducing the cost and headaches that come from benefits administration. Contact us to learn more about how GMS can help your company during open enrollment and assist in managing special enrollment periods.  

  • Around 78% of employers believe their workers are prepared for retirement, but their employees feel differently, with only 45% of them feeling prepared. Planning for life after work doesn’t just affect the employees; it impacts the company. If your workforce consistently worries about their future financial wellness or their ability to make ends meet, they aren’t actively engaging at work, reducing their productivity and attention to detail.

    While concerns about retirement vary by age group or tax bracket, it’s important for business owners to assist their workforce with retirement planning. Providing your workforce with the resources and tools needed to properly plan for retirement can improve employee trust, loyalty, and attract top talent. Continue reading to learn about the different ways you can support your workforce’s retirement journey.  

    Promote Retirement Plans 

    One of the most well-known ways employers assist their employees with retirement is by offering a retirement plan. A retirement plan is a financial strategy that helps individuals save money for life after work. It utilizes resources such as 401(k) plans, Individual Retirement Accounts (IRAs), and other options to grow savings.  Individuals can set aside a certain amount of their income into an account, allowing them to start saving earlier. Providing tools like a retirement plan demonstrates loyalty to your employees and shows you care about their well-being. 

    Provide an Employer Contribution 

    Depending on the company and plan type, employers often contribute funds to their employees’ retirement accounts. Offering a high contribution amount is another way to attract top talent and retain your current workforce. There are several contribution types that employers can provide.

    Matching contributions 

    • This contribution is when an employer adds money to an employee’s retirement account, usually based on a percentage of what the employee already contributes.
    • The amount grows tax-free while in the plan and is only taxable when withdrawn.

    Nonelective contributions 

    • This contribution is given to all eligible employees and is not contingent on whether the employee contributes to it.  
    • These contributions are tax-deductible. 

    Profit-sharing contributions 

    • Profit-sharing contributions are a type of retirement benefit provided by employers, where a company allocates a portion of its profits to employees by making direct contributions to their retirement accounts. 

    Provide Educational Resources 

    A great way to prepare your workforce for retirement is to educate them about their options. There are various retirement plans available, such as a 401(k), Simplified Employee Pension Plan (SEP), and Employee Stock Ownership Plan (ESOP), among others, each with its own benefits. By offering educational sessions and providing advice regarding your specific retirement plan offerings, you can help your employees make more informed decisions about their retirement and future financial planning. 

    Provide voluntary benefits 

    Employers can support their employees’ retirement savings goals by offering a range of voluntary benefits to reduce financial stress. For example, health care benefits such as dental and vision coverage, and health savings accounts (HSAs) help employees manage out-of-pocket medical costs, allowing them to invest more towards retirement. Additionally, benefits like long-term care insurance, legal assistance, and identity theft protection provide financial security and peace of mind, which can encourage more consistent retirement contributions.  

    Retirement Plans and GMS 

    Effectively budgeting and planning for retirement is important for employers and employees. Employees often look to their employers for help regarding funding and contributions. Managing employee retirement funds can be a complex and overwhelming feat for a business owner. Luckily, there are third-party companies like Group Management Services (GMS) that can assist with 401(k) management and retirement planning.  

    Our team can help you manage your retirement contributions and help you set up fully customizable profit-sharing plans that make your company more attractive to quality employees. From contribution amounts, vesting schedules, and eligibility requirements, GMS can help ensure your compliance and make sure you get the most out of your retirement plans.  

    Learn more about GMS’ profit-sharing and 401(k) plans here! 

  • Open enrollment may feel like it’s far off in the future, but the smartest business owners know that preparation starts months in advance. Taking the time now to review your benefit offerings allows you to make informed decisions about your company’s health care plan, identify opportunities to reduce costs, and ensure your benefits remain competitive for attracting and retaining top talent. Waiting until renewal season is in full swing can lead to rushed decisions, missed opportunities for savings, and increased stress for both you and your employees. 

    Early preparation is critical when it comes to health care costs. For many employers, these costs represent one of the most significant annual expenses. By reviewing your plan well before open enrollment begins, you can compare options, evaluate whether your current coverage still meets your employees’ needs, and consider alternative solutions that could reduce expenses without sacrificing quality. This is also your chance to address any feedback you have received from employees over the past year and explore benefits that support overall well-being, such as mental health resources or expanded preventive care options. 

    Continue reading to learn why early preparation matters, how a group health plan through Group Management Services (GMS) can help you lower health care costs, and what steps you can take now to position your company for a smooth open enrollment season. 

    Why You Should Start Preparing Now 

    Open enrollment is one of the most important periods in the human resources (HR) calendar. It’s the time when employees can review and select benefits for the coming year, but for employers, the groundwork starts much earlier. By beginning your review process now, you give yourself the time to: 

    1. Assess your current offerings and identify gaps or redundancies 
    2. Gather employee feedback on benefits usage and satisfaction 
    3. Research and compare plan options for cost and coverage value 
    4. Develop a clear communication plan so employees can make informed choices 

    The sooner you begin, the more negotiating power you have with carriers, and the more flexibility you have to adjust your offerings to meet both your budget and your employees’ needs. 

    The Impact of Rising Health Care Costs 

    For most businesses, health care is one of the largest and fastest-growing expenses. According to recent industry trends, premiums and out-of-pocket costs continue to rise, and small businesses often struggle to secure affordable coverage without sacrificing quality. Employers who wait until the last minute to review their plans often end up renewing existing coverage by default, even if better options exist. 

    By reviewing your benefits early, you can explore strategies to manage costs, such as adjusting plan structures, offering multiple coverage tiers, or introducing wellness incentives to encourage healthier lifestyles and reduce claims. These proactive steps can result in significant long-term savings. 

    How Group Health Plans Lower Costs for Businesses 

    One of the most effective ways to reduce health care costs is to join a group health plan through a certified professional employer organization (CPEO) like GMS. When you partner with GMS, your business becomes part of a much larger benefits pool made up of many small and midsize companies. GMS is the only CPEO that provides an in-house master health plan that helps you avoid large swings in usage, trends, and renewal rates.  

    Here’s how it works: 

    1. Economies of scale: By spreading risk across a larger group, premiums become more stable and affordable. 
    2. Access to top carriers: You can offer high-quality plans that may otherwise be out of reach for small businesses. 
    3. Reduced administrative burden: GMS handles compliance, enrollment, and employee communication, freeing your team to focus on operations. 

    Building a Communication Plan for Open Enrollment 

    Even the most competitive benefits package will fall short if employees do not understand how to use it effectively. That’s why early preparation should include a benefits communication strategy. Employees who receive clear, timely information are more likely to select plans that meet their needs and take advantage of the resources available to them. 

    Consider how you will educate employees about: 

    1. The value of preventive care 
    2. How to choose in-network providers 
    3. Ways to use telehealth and urgent care instead of costly ER visits 
    4. Wellness resources included in their plan 

    Bridging the communication gap not only increases employee satisfaction but can also contribute to lower overall health care costs by encouraging smarter benefits usage. 

    Steps to Take Now for a Successful 2026 Open Enrollment 

    To make the most of this early preparation period, start with a thorough review of your current benefits package. Look at enrollment trends, claims data, and employee feedback from the past year. Work with a trusted partner like GMS to benchmark your offerings against similar businesses in your industry and region. From there, you can explore cost-saving opportunities through a group health plan, adjust coverage to match your workforce’s needs, and develop a timeline for employee communication. 

    By acting now, you position your business to enter renewal season with a clear plan, competitive rates, and benefits that support both your employees and your bottom line. 

    Partner with GMS for Affordable, Competitive Benefits

    GMS helps business owners prepare for open enrollment with expert guidance, competitive group health plans, and end-to-end administrative support. The decisions you make about your benefits now will impact your business for the entire year ahead. Don’t wait until the last minute. Start reviewing your benefit offerings today, and contact GMS to secure coverage at competitive rates for 2026 and beyond. 

  • In today’s competitive job market, employers are continually seeking ways to enhance their employee retention rates and boost morale. While there are various solutions for addressing low retention and morale, enhancing your benefits offerings with supplemental insurance is a great place to start.


    Supplemental insurance plans, also referred to as voluntary benefits plans, aren’t required by law but do provide valuable benefits that can be used to complement your group health insurance plan. But what exactly are these plans, and how do they benefit both parties?

     

    What Are Supplemental Insurance Plans?

    Supplemental insurance plans are additional insurance policies that employees can purchase to complement their primary health insurance coverage. These plans are designed to cover health costs that fall outside of normal health insurance coverage, such as copayments, deductibles, and other out-of-pocket costs.

    These plans can include:

    • Life
    • Dental
    • Vision
    • Accident and critical illness
    • Long-term and short-term disability
    • Pet
    • Pre-paid legal
    • Home and auto
    • Telehealth

    If offered, employees can opt in to these plans. For example, not every employee may want or need a pet insurance plan, but an employee with a dog may be very interested in coverage.

     


    Benefits for Employees

    Offering supplemental insurance plans is a great benefit for employees, showing that they are cared for and valued.

    • Greater control: With supplemental insurance plans, employees can customize their benefits packages to fit their own needs as well as their spouse’s or children’s needs. They’ll also have greater control over how they utilize their benefits, helping them manage and utilize their plans more effectively and efficiently.
    • Access to specialized care: Plans like dental and vision insurance enable employees to receive specialized care without incurring high out-of-pocket costs. This encourages regular check-ups and preventive care, contributing to overall health and well-being. Supplemental insurance plans are beneficial because employees only pay for the specific care they need, rather than covering costs for services that other employees might require.
    • Flexibility: Employees can choose the insurance that best suits their needs and budget. This flexibility allows them to tailor their insurance coverage to their specific health requirements and financial situation.
    • Broader coverage: Depending on the plan, supplemental insurance can provide employees with broader coverage than a group health plan, ensuring they are protected against unexpected medical expenses that their primary insurance might not cover. This added layer of protection can be crucial in maintaining financial stability and peace of mind.

    Benefits for Employers

    As an employer, providing supplemental insurance for your workforce offers several benefits for your business, including enhanced workplace morale, increased company loyalty, and a stronger bottom line.

    • Attracting top talent: Offering supplemental insurance as part of a benefits package can make a company more attractive to potential employees. In a competitive job market, comprehensive benefits can be a deciding factor for candidates choosing between job offers.
    • Employee retention: Supplemental plans can be a powerful tool to retain top talent. Providing robust benefits can increase employee satisfaction and loyalty because when employees feel valued and supported, they are more likely to stay with the company long-term.
    • Improved productivity: Healthier employees are more productive. By offering supplemental insurance, employers can help ensure their workforce has access to necessary medical care, reducing absenteeism and improving overall productivity.
    • Savings: While offering supplemental insurance can increase your premiums, it can lead to long-term savings. Healthier employees mean fewer sick days and lower health care costs, which can positively impact the company’s bottom line.

    GMS and Supplemental Insurance

    Supplemental insurance plans are a valuable addition to any benefits package, offering significant advantages for both employees and employers. By providing enhanced coverage, financial security, and access to specialized care, these plans contribute to the overall well-being of employees.

     

    If you want to offer supplemental insurance for your employees, but aren’t sure where to start, consider partnering with Group Management Services (GMS), a professional employer organization (PEO). With the help of our knowledgeable team, GMS can assist you in offering competitive benefits and supplemental insurance packages at an affordable price. We offer a higher collective buying power that can lower your premiums and provide benefits comparable to those of a Fortune 500 company.

    Contact us to learn more about how we can help your business!

  • The Internal Revenue Service (IRS) has officially announced the 2026 contribution limits for Health Savings Accounts (HSAs), providing employers and employees with an early opportunity to plan ahead. These updated caps reflect the ongoing impact of inflation on health care costs and signal a continued trend toward higher savings opportunities for those enrolled in high-deductible health plans (HDHPs).

    2026 HSA Contribution Limits

    Starting on January 1, 2026, the HSA contribution caps will increase to the following:

    • Individual coverage: $4,400 (up from $4,300 in 2025)
    • Family coverage: $8,750 (up from $8,550 in 2025)
    • Catch-up contributions (Age 55+): Remain unchanged at $1,000

    To contribute to an HSA, employees must be enrolled in a HDHP. The 2026 IRS thresholds for HDHPs are also increasing:

    Minimum deductible:

    • Self-only: $1,700
    • Family: $3,400

    Maximum out-of-pocket limit:

    • Self-only: $8,500
    • Family: $17,000

    These increases are tied to inflation adjustments and are part of a broader trend to help individuals better prepare for growing health care expenses.

    Why This Matters for Employers 

    As the cost of health care continues to climb, HSAs remain a powerful tool for both employers and employees. They offer triple tax advantages, pre-tax contributions, tax-free interest and investment earnings, and tax-free withdrawals for qualified medical expenses.

    For employers, offering an HSA as part of your benefits package not only enhances your overall offerings but also encourages cost-conscious health care choices and long-term savings among employees. With 2026 limits now available, proactive planning can help you maximize these benefits for your workforce.

    Steps Employers Should Take

    Now is the time to begin evaluating your benefits strategy for the year ahead. Employers can take the following actions today:

    • Review your current HDHP offerings: Ensure that your health plans for 2026 will meet the updated deductible and out-of-pocket requirements for HSA eligibility.
    • Update your employee education materials: Inform employees early about the upcoming changes so they can make informed decisions during open enrollment.
    • Assess contribution matching strategies: Consider increasing employer HSA contributions to align with the new caps. This can boost employee retention and improve financial wellness.
    • Incorporate Flexible Spending Accounts (FSAs): Complement your HSA offerings with FSAs for employees who may not be enrolled in HDHPs, allowing more flexibility in managing health care costs.
    • Partner with a trusted benefits administrator: Working with a knowledgeable third-party administrator can streamline compliance, simplify plan management, and ensure you’re making the most of tax-advantaged benefits.

    How GMS Can Help Strengthen Your Benefits Program

    At Group Management Services (GMS), our benefits experts are here to help you make the most of your health savings offerings. We provide:

    • Expert guidance on plan design and compliance to ensure your HDHPs and HSAs meet IRS requirements.
    • HSA and FSA administration services to simplify account management and reduce administrative burden.
    • Comprehensive group health insurance plans that integrate seamlessly with savings accounts.
    • Employee education tools to help your workforce understand and utilize their benefits effectively.

    Offering HSAs and FSAs is more than just a checkbox; it’s a strategic advantage. With GMS as your partner, you can ensure your benefits program is compliant, competitive, and built to support the health and financial wellness of your employees.

    Ready to elevate your benefits strategy for 2026? Contact GMS today to get started.

  • Health insurance is one of the most important benefits you offer as an employer. It supports your team’s well-being, helps you stay competitive in the job market, and represents a major part of your annual budget. However, the renewal process can be complex, time-consuming, and, if not handled strategically, expensive. While many businesses renew their health plans in January, many others are on off-cycle renewals throughout the year. Regardless of your timeline, the fundamentals of a successful renewal process are the same.

    In this guide, we’ll walk you through how to prepare for your health care renewal, what to consider at each stage of the process, and how to make strategic decisions that support your business and your employees. While this process can be painful and daunting, GMS has built a better way to simplify and streamline your health care renewal.

    Why Health Care Renewals Matter

    Rising health care costs and a competitive labor market make benefits decisions more important than ever. According to the Kaiser Family Foundation, average annual premiums for employer-sponsored family health insurance was $25,572. This represents a 7% increase from the previous year and is the second consecutive year with a 7% rise. On average, workers contributed $6,296 towards the cost of family coverage, while employers covered the remaining portion.

    Renewals are your annual opportunity to reassess that investment. Do your current offerings still align with your budget, workforce needs, and business goals? Are there more cost-effective or attractive options available?

    A well-planned renewal process helps you:

    • Control premium costs
    • Improve plan design
    • Boost employee satisfaction and retention
    • Ensure compliance with regulations

    When Should You Start the Renewal Process?

    The benefits renewal process should ideally begin six months before your renewal date, whether that’s in January or any other month. A thoughtful, phased approach allows time for plan evaluation, carrier negotiations, employee education, and smooth implementation.

    Here’s a closer look at what to do at each stage:

    180 to 120 Days Before Renewal: Set the Foundation

    Evaluate Your Broker or Provider

    Is your current broker actively bringing you competitive options? Are they proactive about managing costs, staying compliant, and providing strategic guidance? If not, this is a good time to explore new partnerships.

    Review Current Plan Performance

    Gather data on claims history, plan usage, employee feedback, and overall satisfaction. Analyze what’s working and what isn’t.

    Define Your Budget

    Project costs for the coming year. Consider employee contributions, company cost-sharing, and potential cost-containment strategies like changing networks or plan types.

    Assess Workforce Needs

    Has your team grown since your last health care renewal? Are employees asking for more flexibility or different coverage levels? Use employee surveys or HR insights to guide plan design.

    120 to 90 Days Before Renewal: Explore Your Options

    Compare Plan Options

    During this period, your broker or provider should begin presenting new plan options based on your goals and budget. Look at premiums, deductibles, copays, networks, and value-added services.

    Consider Supplemental Benefits

    If you’re not already offering dental, vision, or mental health benefits, this is a good time to explore bundling options to increase employee value without significantly raising costs.

    Develop a Communication Strategy

    Start preparing to educate employees about potential policy changes. Clear, consistent communication reduces confusion and improves engagement during open enrollment.

    90 to 60 Days Before Renewal: Quote and Evaluate

    Submit Data for Quotes

    Provide finalized census and plan information so carriers can generate official quotes.

    Evaluate Final Options

    Compare quotes and weigh your choices against your budget, workforce needs, and strategic goals. Look beyond just premiums, consider long-term value, and plan stability.

    Inform Employees Early

    To improve participation and employee satisfaction, begin preparing employees for what’s coming. Share timelines, answers to frequently asked questions (FAQs), and who to contact for help.

    60 Days or Less: Make Decisions

    Make Your Final Selection

    Choose your carrier and plan design. Sign all required documents and ensure compliance with any federal or state requirements, including Affordable Care Act (ACA) reporting and Consolidated Omnibus Budget Reconciliation Act (COBRA) rules.

    Prepare for Open Enrollment

    Finalize employee materials and schedule enrollment meetings or virtual sessions. Ensure HR and management teams are trained to support the process.

    Launch Open Enrollment

    Make the process as simple and accessible as possible. Provide digital tools, enrollment assistance, and ample time for employees to ask questions and make decisions.

    How GMS Can Help

    At Group Management Services (GMS), we simplify the health care renewal process with expert support and integrated technology designed to make benefits administration easier, more secure, and more efficient.

    When you partner with GMS, you get:

    Custom group health plans

    We have developed a comprehensive Master Health Plan (MHP), integrating top national and regional voluntary benefits to offer affordable and flexible plan options. GMS is the only certified professional employer organization (CPEO) that provides an in-house master health plan that helps you avoid large swings in usage, trends, and renewal rates.

    Strategic benefits support

    Our benefits experts offer comprehensive guidance on maximizing your plans, ensuring compliance, and navigating ACA regulations. They also provide employee training on plan details and address complex health plan questions. Additionally, our Implementation Specialists work closely with owners and employees to ensure a seamless transition, offering personalized support and assistance throughout the process.

    All-in-one HR technology

    With GMS Connect, our cloud-based HR platform, you can manage benefits, payroll, and employee records in one secure system.

    You do not have to navigate health care renewals alone. GMS makes it easier to manage the entire process while improving the employee experience. By leveraging our collective buying power, diverse coverage options, and comprehensive administrative support, you can significantly lower your group health care premiums while providing your employees with top-tier benefits.

    Want help simplifying your next renewal? Contact GMS today and let’s start planning for a healthier, more efficient future for your business.