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The Business Owner Decision Making Process

As a business owner there are fundamental practices you like to follow

 

  1. You like to control costs.
  2. You like to get value for the money you spend.
  3. If you have to spend money you want to get a tax deduction for it.
  4. As an employer, or self employed, you want productivity and satisfaction.
  5. You need to be nimble, creative and flexible.
  6. You want to be efficient in your time and your organizations resources.

 

With a PHSP health benefit plan you tick all of the above boxes!

How do you control costs? This is the most critical structuring element of a PHSP. You cap the annual medical expenditure limit. Your cash out will not exceed this limit. In fact, if there are no medical claims there is no cash out.

 

How do you get value for your money? Under an insurance company program you pay a fixed premium whether there are any medical expenses or not. With a PHSP you only pay for what you use. In addition, the margins on a PHSP are almost always considerably less.

 

How do you get productivity and satisfaction? Having a PHSP health benefit plan, first of all, is very valued by owners and employees. The plan is also tailored to your specifications, meaning you are providing the benefits you want vs. a packaged plan with limited options.

 

How can a PHSP be nimble, creative and flexible? Let me first reiterate, you first have to establish a maximum annual dollar limit per employee. Within this limit your creativity is unlimited. You can leave the limit open to any qualifying medical expense or you can have it narrow to very specific qualifying medical expenses. The choice is yours to make.

What I have learned that is often overlooked is the fact that you can have different employment classifications. This allows for even greater flexibility. This goes back to the limit issue. For example, you could have the following;

$10,000                 Class 1 – Executive (owners/senior executives)$5,000                   Class 2 – Management

$2,500                   Class 3 – Production workers

$1,500                   Class 4 – administration

The above is just an example, but can be even further defined.

The limits can be taken even further. You could have a further split for single and married people.

So as you can see, there are many possibilities to create a plan that works for YOU.

How is this efficient to your organization?

As administrators / adjudicators, OMBAS takes care of the work. We work with you to set up the structure and then we monitor and manage it.

Posted byOMBASwp
February 12, 2017

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