How important are executive medical reimbursement plans?
January 27, 2022at5:00 AM
Important work deserves to be well-compensated. That’s why your top-level people deserve first-class executive medical reimbursement plans.
Benefits are an important perk of any job, and employers all across the United States put a lot of effort into building a benefits package that’s going to attract and retain the most talented workers available in their industry.
One of the most significant parts of a benefits package for most employees is a medical reimbursement plan. Health insurance is far from cheap for most people in the U.S., and even if you have it through an employer, deductibles and other out-of-pocket costs may still be fairly high.
But is it as much of a factor for executive-level staff? What exact difference does your executive medical reimbursement plan make to current and potential employees? Additionally, what other, less obvious factors should you be taking into consideration when it comes to your health coverage and overall benefits package? Keep reading for the answers to these crucial questions.
How much of a difference does medical reimbursement make to executives?
But benefits don’t cover all medical costs. You’re still responsible for paying some out-of-pocket costs due to factors like your deductible, and depending on what kind of coverage you have, these costs may still be as high as hundreds or thousands of dollars each year.
The question, though, is whether this remains as important to joining or remaining with an organization for current employees or candidates for executive-level positions. The short answer is yes, it absolutely does.
The longer answer is that while executives are typically some of the highest-compensated members of any organization’s workforce, a solid medical reimbursement plan can make a big difference in the amount of that money they’re able to keep.
Attracting and retaining executives with a medical reimbursement plan
The next question, then, is which costs are most important to reimburse in a plan that’s attractive to executive-level staff.
Your executive’s health insurance deductible is likely the biggest cost factor to keep in mind here, but there are a few others that’ll pull a lot of weight when it comes to making your reimbursement plan a stronger, more appealing one, including:
Preventative check-ups and treatments
Out-of-pocket vision costs
Mental health treatment
Together, all of these cost factors can amount to a big annual bill, even for an employee making a high six-figure salary. Offering plenty of opportunities to save more of that money can give your company an edge over your competitors for attracting and keeping top talent for your highest-level positions.
Evaluating shareholder-related factors
Attracting impressive candidates for your executive positions is, of course, incredibly important for the long-term success of your organization. But it’s also something you need to consider when evaluating what message your overall executive compensation structure sends to current and potential investors.
A lot of different elements compose your executive’s compensation, and your job perks are one of the more major ones. You need to be careful, though, that an executive at your company isn’t being compensated improperly, including in the realm of benefits and perks.
Why does this matter? Current shareholders or investors looking for a buying opportunity could take what they perceive as improper compensation as a factor that disincentivizes an executive from doing as much as they can in their best interests, weakening the overall valuation of the company.
When your company offers a stellar executive medical reimbursement plan and benefits package, high, constantly-evolving performance expectations need to be in place for your executives.
Find the right plan with Ashton Benefits
If you’re ready to put a top-tier executive medical reimbursement plan in place, work with Ashton Benefits to make it happen. You can set up an appointment by calling at 877-640-2813 or sending a message through our online contact form.
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