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  • 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.

  • As health care costs keep rising, both employees and employers are looking for ways to manage these expenses and make coverage more affordable. However, balancing these growing costs while ensuring employee satisfaction can be challenging for employers. To achieve this balance, employers can implement a variety of strategies to effectively lower health care costs while keeping employees happy, healthy, and productive.

    What Do Health Care Costs Include

    Health care costs include all expenses related to maintaining or improving an individual’s health. While many services can fall under the umbrella of “health care”, these costs typically include accessing and utilizing health care services such as prescriptions, health insurance, doctors’ visits, deductibles, copayments, premiums, and more. While offering health care and health benefits can be expensive, they are essential to attract and retain top talent. Continue reading to learn a few ways you can reduce your health care costs.

    Invest In Prevention

    Prevention is the best medicine, especially when it comes to health. By encouraging employees to focus on their health, either through developing healthy habits or scheduling regular check-ups, you help them focus on their current health and avoid future health issues. Regular check-ups, screenings, vaccinations, and telehealth appointments can significantly reduce long-term health care costs and prevent more serious and expensive conditions down the line.

    Implement Wellness Programs

    Wellness programs are designed to enhance the health and wellness of individuals. They can focus on physical activity, nutrition, stress management, and mental health. According to a recent study, 91% of companies reported that their health care costs decreased because of their well-being program. These programs can include fitness challenges, stress management workshops, financial wellness resources, nutrition assistance, and more.

    By fostering a culture of wellness, employers can reduce absenteeism, improve productivity, and increase morale. When employees feel supported, they are more likely to take better care of themselves and adopt healthier behaviors, which can lead to reduced use of health care benefits and ultimately lower health care costs.

    Offer Telemedicine Services

    Telemedicine has expanded in the past decade, effectively transforming the health care landscape. Telemedicine provides employees with the ability to have a doctor’s appointment online. It provides greater efficiency and flexibility for physicians and patients alike. Employees are able to receive help for minor ailments and follow-up appointments, and receive faster care than going in person, reducing employee absenteeism and improving productivity. The convenience of telemedicine saves employees time by eliminating travel and waiting periods, and also reduces the need for time off work and costly co-payments.

    Implement Additional Savings Accounts

    Another effective way to lower health care costs is by offering a Health Savings Account (HSA). An HSA is a special type of account that allows individuals to save money specifically for qualified health care expenses. With an HSA, contributions can be made tax-free as long as the funds are used for eligible medical expenses, which include deductibles and copayments. However, insurance premiums are generally not considered qualified medical expenses. To be eligible to contribute to an HSA, one must be enrolled in a high-deductible health plan (HDHP). These accounts can lower premium costs for employers and allow employees to save pre-tax dollars for medical expenses, giving them more control over their health care spending.

    How CPEOs Lower Health Care Costs

    Reducing health care costs is a growing priority among business owners. While many business owners are reducing their coverage options to save money, this can leave employees vulnerable to higher health care-related expenses. Managing employee health plans isn’t an easy task, especially if you’re managing it alone. Luckily, Group Management Services (GMS), a certified professional employer organization (CPEO), can help you manage your employee benefits and the associated costs.

    Our benefits experts can help you make the most of your benefits while saving you money. We provide expert guidance on health plan design and ensure compliance with the Internal Revenue Service (IRS). With our HSA and Federal Spending Account (FSA) administration services, we can simplify your account management.

    We also provide comprehensive group health insurance plans that can reduce your premiums and deductibles. GMS represents more than 50,000 employees, which allows us to help businesses purchase group health insurance at rates up to 24% lower for employee premiums and up to 15% lower for family premiums compared to the U.S. average.

    Employee health care and benefits are not easy to manage. That’s why having a knowledgeable partner to walk you through your options is essential. Contact us to learn how GMS can help simplify your health care and benefits today.

  • 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.

  • Short-term disability insurance is a crucial benefit that provides employees with financial protection when they are temporarily unable to work due to a medical condition. For employers, offering short-term disability insurance can enhance recruitment efforts, improve employee retention, and contribute to a healthier workforce.

    This blog will walk you through everything you need to know about short-term disability insurance, including what it covers, its benefits for both employers and employees, supplemental insurance options, and how to integrate it into your benefits package.

    What Is Short-Term Disability Insurance?

    Short-term disability insurance replaces a portion of an employee’s income when they cannot work due to non-work-related illnesses, injuries, or medical conditions. Unlike workers’ compensation, which covers work-related injuries, short-term disability insurance provides coverage for medical issues that occur outside of the workplace.

    What Does It Cover?

    Short-term disability insurance typically covers conditions that temporarily prevent an employee from working, such as:

    • Recovery from surgery
    • Severe illnesses (e.g., pneumonia, COVID-19 complications)
    • Pregnancy and childbirth recovery
    • Injuries like fractures or sprains
    • Mental health conditions requiring hospitalization or extended treatment

    How Long Does Coverage Last?

    Most short-term disability policies provide benefits for three to six months, depending on the plan. There is usually a waiting period of seven to 14 days before benefits begin, meaning employees must use sick leave or unpaid time off before their short-term disability coverage takes effect.

    Is Short-Term Disability Insurance Necessary?

    Short-term disability insurance can help ensure you and your loved ones are financially supported while you recover. To decide if it’s right for you, consider whether you have enough savings to cover living expenses and medical costs, if you have dependents relying on your income, if you’re at higher risk due to health or job factors, and if you qualify for any disability benefits. Ultimately, the decision depends on your personal circumstances and financial situation.

    The Benefits of Offering Short-Term Disability Insurance

    For Employers

    • Improved recruitment and retention: A strong benefits package, including short-term disability insurance, can set your company apart in a competitive job market. Employees are more likely to stay with a company that offers financial security in case of medical emergencies.
    • Increased productivity: Employees with access to short-term disability benefits are more likely to take the necessary time to recover before returning to work, reducing the risk of prolonged absences due to untreated conditions.
    • Reduced turnover costs: Employees who feel supported during medical hardships are more likely to stay with their employer, reducing turnover costs associated with hiring and training new workers.

    For Employees

    • Financial stability during recovery: Short-term disability insurance provides a percentage of an employee’s income (typically 50-70% of their salary) during their leave, allowing them to cover essential expenses like rent, utilities, and medical bills.
    • Peace of mind: Knowing they have financial support while recovering allows employees to focus on their health without the stress of lost wages.
    • Faster return to work: Employees who can afford proper medical care and recovery time are more likely to return to work in a healthier, more productive state.

    Supplemental Insurance Benefits

    Some businesses offer short-term disability insurance as a supplemental benefit, meaning employees can opt into coverage and pay premiums themselves. This approach allows businesses to provide an essential benefit without increasing costs.

    Additionally, employers can enhance their benefits package by offering supplemental insurance options, such as:

    • Long-term disability insurance: Provides coverage for extended medical leaves lasting six months or longer.
    • Accident insurance: Covers medical expenses related to unexpected injuries.
    • Critical illness insurance: Offers financial support for serious illnesses like cancer, heart disease, or stroke.

    By giving employees access to these supplemental benefits, businesses can create a well-rounded benefits package that supports workforce well-being.

    Short-Term Vs. Long-Term Disability Insurance

    Short-term disability insurance provides coverage for a limited period, typically up to six months, for disabilities that temporarily prevent you from working. It helps replace a portion of your income during recovery from illnesses, injuries, or surgeries.

    On the other hand, long-term disability insurance offers coverage for extended periods, often several years or until retirement age, for disabilities that significantly impact your ability to work long-term. It provides a more substantial income replacement to support you over a longer duration.

    How to Integrate Short-Term Disability Insurance into Your Benefits Package

    If you’re considering adding short-term disability insurance to your employee benefits, follow these steps to ensure a smooth integration:

    1. Assess Employee Needs

    Survey your employees or analyze past leave requests to determine whether short-term disability insurance would be valuable for your workforce.

    1. Choose the Right Coverage

    Work with an insurance provider or a professional employer organization (PEO) like Group Management Services (GMS) to find a plan that aligns with your company’s budget and employee needs.

    1. Communicate the Benefits Clearly

    Ensure employees understand:

    • What the coverage includes
    • How to enroll
    • How to file a claim when needed
    1. Partner with a PEO for Simplified Benefits Administration

    Managing short-term disability insurance and other benefits can be complex, especially for small and mid-sized businesses. GMS simplifies benefits administration by:

    • Connecting you with top insurance providers
    • Handling enrollment and claims processing
    • Ensuring compliance with federal and state regulations

    How GMS Can Help

    At Group Management Services (GMS), we specialize in helping small to midsize businesses implement cost-effective, comprehensive benefits packages that include short-term disability insurance.

    Why partner with GMS?

    • Competitive rates: Access to top insurance providers for competitive rates.
    • Tailored solutions: Customized benefits solutions tailored to your company’s needs.
    • Big business health benefits: Greater buying power through economies of scale.

    Our Master Health Plan (MHP) offers access to one of the largest national networks, providing significant savings on both employee and family premiums.

    Offering short-term disability insurance is a smart investment that enhances your company’s appeal, supports employee well-being, and creates a more productive workplace. Let GMS help you design and implement a benefits package that works for your business and your employees.

    Ready to learn more? Contact GMS today to explore your options!

  • Employee Assistance Programs (EAPs) are a workplace resource designed to help employees address personal and professional challenges that may impact their well-being, job performance, and overall productivity. These programs provide confidential, no-cost access to counseling and support for issues such as mental health, substance abuse, legal concerns, financial planning, and more.

    According to the Society for Human Resource Management (SHRM), in 2024, 68% of small companies with 50-99 employees offered an EAP. This growing adoption reflects the effectiveness of EAPs in promoting employee wellness and driving organizational success. For employers, these programs aren’t just a way to support workers; they are a strategic investment in a healthier, more engaged workforce.

    How Does An Employee Assistance Program Work?

    EAPs operate as a confidential resource that employees can access 24/7. Employees may self-refer or be referred by a manager for challenges that might affect their job performance. Common services include:

    • Mental health counseling: Assistance for depression, anxiety, grief, or trauma, delivered by licensed professionals.
    • Substance abuse support: Access to addiction recovery resources and tools to maintain sobriety.
    • Legal and financial assistance: Guidance on legal issues such as landlord disputes or financial challenges like debt management.
    • Work-life balance solutions: Help with parenting, eldercare, and time management concerns.

    EAP services are typically accessed through phone lines, online portals, or in-person sessions, ensuring flexibility and convenience for employees. Employers pay a flat fee per employee to the provider, making it a cost-effective solution with measurable benefits.

    Benefits Of Implementing An EAP

    Boost employee well-being

    Mental health challenges are the leading cause of lost productivity worldwide. In 2024, 80% of employees reported experiencing workplace stress, with many citing it as a barrier to peak performance. EAPs can reduce this burden, offering timely interventions that help employees return to work with focus and confidence.

    Enhance productivity

    Employees struggling with personal challenges are five times more likely to be distracted on the job. Studies from 2024 reveal that businesses with EAPs reported a 25% reduction in absenteeism and a significant improvement in employee focus.

    Lower turnover rates

    Employees who feel supported by their employer are more likely to stay. Data shows that companies with robust EAPs saw 20% lower turnover rates than those without, saving an average of $15,000 per employee in rehiring costs.

    Reduce healthcare costs

    EAPs lead to proactive problem-solving, preventing issues like burnout or substance abuse from escalating into costly medical claims. According to recent reports, every dollar invested in an EAP generates a $3 return in reduced health care and productivity costs.

    Requirements For Offering An EAP

    While EAPs aren’t federally mandated, some state laws or industry standards may require support services. For instance, federal contractors and safety-sensitive industries often have stricter requirements for employee support due to compliance with Occupational Safety and Health Administration (OSHA) or Department of Transportation (DOT) regulations.

    To remain competitive, many small and midsize businesses (SMBs) have begun voluntarily implementing EAPs, which ensures they can attract and retain talent in a challenging labor market.

    How To Offer And Promote An EAP

    • Select the right provider: Not all EAPs are created equal. Choose a provider that offers comprehensive services tailored to your workforce. Look for flexibility in delivery methods (virtual, phone, or in-person) and high utilization rates.
    • Communicate the program’s value: Employee buy-in starts with education. Use onboarding materials, posters, and regular email campaigns to highlight EAP benefits. Emphasize confidentiality to alleviate fears about using the program.
    • Encourage participation: Integrate the EAP into your workplace culture by discussing it openly during meetings or wellness events. Managers can also be trained to recognize when employees might benefit from EAP services.
    • Monitor and optimize: Use provider reports to track utilization and feedback. For example, if only 10% of employees access the program, consider whether communication strategies need improvement.

    How GMS Can Help

    Employee expectations will continue to evolve in 2025, emphasizing holistic wellness and mental health support. EAPs are no longer an optional perk; they are necessary for businesses seeking to attract, engage, and retain top talent in a competitive labor market.

    When you partner with Group Management Services (GMS), you gain access to a top-tier EAP provider as part of a comprehensive benefits package. With over 25 years of expertise, we understand the importance of tailoring solutions to meet the specific needs of SMBs.

    Our team manages the complexities of EAP administration, from onboarding to compliance, so you can focus on running your business. Additionally, GMS helps integrate the program seamlessly with other HR initiatives, such as employee wellness programs and performance management systems.

    Don’t wait to invest in your employees’ well-being. Partner with GMS to build a benefits program prioritizing your workforce while driving measurable business outcomes.