Offering an Insurance Package to Retain and Reward Employees: What Dermatologists Should Know

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In today’s environment, dermatologists should focus on the welfare of their employees in addition to improving patient care and operational efficiency. Part of this challenge is offering a comprehensive insurance benefits package. This package is not just a means of attracting and retaining top talent; it reflects a physician’s commitment to their team’s health and well-being. This article will explain the various elements that can go into a comprehensive insurance benefits package for medical practice employees.

Health Insurance

Providing health insurance is the foundation of any employee benefits package. As a physician, you can offer your employees different health insurance options to meet their needs and the needs of their families.

Comprehensive Health Coverage

A comprehensive health insurance plan covers various medical expenses, including hospitalization, doctor visits, prescription drugs, and emergency care. This type of plan offers employees and their families a safety net, ensuring they have access to necessary medical care without facing undue financial burdens.

Specialized Health Plans

In addition to comprehensive health coverage, specialized health plans can be offered to address specific areas of health care. Dental and vision plans, for instance, provide coverage for dental procedures, eye examinations, and corrective lenses.

Wellness Programs and Preventive Care Initiatives

Promoting a healthy lifestyle among employees is pivotal for their well-being and productivity. Wellness programs and preventive care initiatives can effectively contribute to this end. These programs may encompass gym memberships, nutrition counseling, and smoking cessation. Encouraging employees to embrace healthier habits can mitigate the risk of chronic diseases and reduce health care costs in the long term.

Disability Insurance

Physicians can provide their staff members with disability insurance, a safeguard for those unable to work due to health issues or injury. This insurance typically falls into 2 categories: short-term and long-term coverage. The former often provides benefits for a 6-month period, whereas the latter extends to the employee’s retirement age. Some policies may include rehabilitation services and return-to-work programs to expedite the employee’s recovery and reintegration into the workforce.

Short-term disability insurance is a benefit that provides employees with a percentage of their income if they are temporarily unable to work due to a non–work-related illness, condition, or injury, such as pregnancy or recovery from surgery. The benefit is typically a percentage of the employee’s salary and may be subject to a waiting period before benefits begin. The waiting period can be as short as 7 days; typically, benefits are provided for 20 weeks.

Long-term disability insurance, however, is designed to support employees who face extended periods off work due to illness or injury. This form of insurance is often an individual policy, offering benefits that can extend to retirement age. The benefit amount is commonly a percentage of the employee’s salary and may involve a waiting period before disbursement begins. Typical waiting periods are 120 days, and benefits last for years. Long-term disability insurance is more expensive and sometimes is provided for a carved-out group of employees.

Moreover, disability insurance can be structured to maintain an employee’s health insurance coverage and other benefits. The peace of mind it affords employees and their families, knowing that financial support is in place should the unforeseen occur, is invaluable.

Life Insurance

Life insurance is a critical component of a comprehensive benefits package. It provides a death benefit to the insured employee’s beneficiary, which can help provide financial security for the employee’s family in the event of their death.

Term life insurance is typically used for this benefit. In addition to term insurance, physicians may also opt to offer their employees accidental death and dismemberment (AD&D) insurance. This type of coverage provides a death benefit or lump-sum payment in the event of the insured employee’s accidental death or dismemberment. Often included as a rider to a life insurance policy, AD&D insurance can be a valuable supplement for employees in high-risk occupations.

Physicians should weigh the cost, coverage, and staff needs when selecting life insurance plans for employees. By providing life insurance, physicians contribute to the financial security of their employees and their families.

Supplemental Insurance

Supplementary insurance assists employees in covering expenses that their primary health insurance plans may not fully address.

• Critical illness insurance provides a lump-sum payment if an employee is diagnosed with a covered critical illness, such as cancer, heart attack, or stroke.
• Hospital indemnity plans provide a daily or weekly benefit to hospitalized employees, regardless of the reason for hospitalization.
• Supplemental Medicare coverage can help employees meet expenses not covered by Medicare, such as co-payments, coinsurance, and deductibles.

Physicians should meticulously deliberate the type of supplementary insurance that best serves their employees. The choices should be contingent on the employees’ needs and budget, as well as the comprehensive benefits package provided by the physician.

General Liability Insurance

General liability insurance is a cornerstone of the insurance portfolio that physicians provide for their employees. General liability insurance safeguards physicians from legal claims due to onsite injuries or property damage. This insurance is pivotal, offering financial protection in the face of such incidents and ensuring the continuity of your practice. General liability insurance is purchased through your property and casualty agent and typically will be required if you are leasing your medical space.

Conclusions

Offering a diverse range of insurance options allows physicians to cater to the varied needs of their employees, fostering a supportive and healthy work environment. By tailoring benefits to employee needs and staying abreast of future trends, physicians can ensure their practices remain competitive and attractive to top talent.

David Mandell, JD, MBA, is an attorney and author of more than a dozen books for doctors. He is a partner in the wealth management firm OJM Group
(www.ojmgroup.com).

Jason O’Dell, MS, CWM, is the managing partner and a financial
consultant.

They can be reached at 877-656-4362 or mandell@ojmgroup.com.

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This article contains general information that is not suitable for everyone. The information containedherein should not be construed as personalized legal or tax advice or as a recommendation of any particular security or strategy. There is no guarantee that the views and opinions expressed in this article will be appropriate for your particular circumstances. Tax law changes frequently. Accordingly, information presented herein is subject to change without notice. You should seek professional tax and legal advice before implementing any strategy discussed herein.

Mandell and O’Dell are pleased to announce the 2024 publication of their newest book, Wealth Planning for the Modern Physician: Residency to Retirement. Enhance important financial topics for physicians. To receive a free print copy or e-book download, text DERM to 844-418-1212.