Many industrial workers have physically and mentally demanding jobs. Long hours, strenuous work, and high-risk environments contribute to work-related injuries, illnesses, and other health-related issues.

According to the U.S. Bureau of Labor Statistics (BLS), the manufacturing industry reported 396,800 nonfatal occupational injuries and illnesses in 2022. These cases resulted in 134,600 days away from work and 118,700 days of job transfer or restriction.

Illnesses and injuries are among the leading causes of absenteeism and turnover for industrial workers. These factors cost employers significant time and money on hiring, onboarding, and training. As a result, affordable healthcare for industrial workers is essential. Benefits of Affordable Healthcare for Industrial Workers Affordable healthcare helps industrial workers access physical and mental health services and manage healthcare costs.

The benefits include:

Improved well-being
Increased productivity
Greater job satisfaction
Better employee morale
More attractive company culture
Higher employee attraction and retention rates
Fewer sick days
Reduced risks of injuries and illnesses
Lower absenteeism rates
Less risk of burnout
Compliance with regulatory requirements
Reduced healthcare benefits spending
Higher profits
Stronger bottom line
Increased business growth
Greater competitive advantage
Healthcare Factors to Consider

Focus on these factors when creating your industrial workers’ healthcare benefits package:

Your monthly budget
Employee ages
Family statuses
Known pre-existing conditions among your employees and their families
Amount your employees can contribute
Healthcare benefits your competitors offer

Types of Employee Health Insurance Plans

Common types of health insurance plans for industrial workers include:

Health maintenance organization plan

A health maintenance organization (HMO) plan offers coverage for a network of doctors, specialists, hospitals, and other healthcare providers. Employees can choose a primary care physician from the network to coordinate their medical care and provide specialist referrals.

Preferred provider organization plan

A preferred provider organization (PPO) lets employees choose care from any provider within the
network. Choosing an in-network provider lowers out-of-pocket costs.

Exclusive provider organization plan

An exclusive provider organization (EPO) plan offers a network of providers for employees to choose
from. A primary care provider and specialist referrals are not needed.

Point-of-service plan

A point-of-service (POS) plan lets employees choose a primary care physician from the network and
provides the option to receive care from out-of-network providers at a higher cost. This plan offers
additional flexibility for healthcare services.

High-deductible health plan

A high-deductible health plan (HDHP) has lower monthly premiums and higher deductibles. Employees
are responsible for more out-of-pocket costs and higher deductibles before the insurance pays for
healthcare services.

Popularity of Self-Funded Health Insurance

Industrial workers focus on employer-sponsored healthcare when deciding where to work and how long
to remain. However, as the second-highest business expense, many employers have a difficult time
finding affordable healthcare plans:

Healthcare premiums are expected to double in the coming years.
Companies that spend more on healthcare have increased difficulty providing competitive wages.
Competitive compensation is required to attract and retain top talent.

Because many industrial companies need cost-effective alternatives to employer-sponsored health
insurance, self-funded health insurance is becoming popular:

Employers can provide affordable, high-quality employee benefits.
Companies with as few as 25 employees can access quality healthcare at lower cost.
Small and midsized businesses are pooled to offset risk.
Employers pay for the insurance their employees need and use.
Employees pay a premium to their employer.
Employers self-fund employee claims up to a set or aggregate deductible for all employees.
Claims above the deductible are covered by stop-loss insurance or reinsurance to avoid the expense of catastrophic claims.
Unused claims are refunded pro-rata at the end of the year.
Refunds are based on the group’s performance.
Employers can avoid annual premium increases.

Other Alternatives to Group Health Insurance

If group health insurance is outside your company’s budget, consider these healthcare alternatives:

Qualified Small Employer Health Reimbursement Arrangement

A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) is available to employers
with fewer than 50 full-time equivalents (FTEs) who do not offer a group health insurance plan:

Employees can purchase health insurance on the individual market with tax-free dollars.
The employer funds the program pretax and reimburses workers when they purchase a qualifying health insurance plan.
The employer decides whether to reimburse the entire cost of health insurance or a fixed-dollar amount.
The contributions and payments are exempt from payroll taxes and income tax.
The plan saves employers and employees money on healthcare expenses.

Individual Coverage Health Reimbursement Arrangements

Individual Coverage Health Reimbursement Arrangements (ICHRAs) provide a cost-effective range of employee healthcare benefits:

Employers contribute a set dollar amount for each employee to spend on an individual healthcare plan that fits their needs.
Employees choose the health insurance plan that aligns with their preferences for doctors, specialists, medical services, and location.
Companies can create predictable budgets for healthcare expenses.
The uncertainty of claims risk and administrative costs is eliminated.
Plans can be designed for different employee tiers or job roles.
Employer contribution levels can differ based on job status, geography, and other factors.
An employee can take their ICHRA when changing employers, eliminating the need to change coverage or be concerned about losing it.
Employers have minimal need to administer COBRA when an employee leaves.

Direct primary care

Direct primary care (DPC) involves paying a monthly subscription to a primary care physician’s office:

There is no insurance, deductible, coinsurance percentage, or copay.
A primary care physician handles basic services in their office.
Employees can see their doctor as needed to address medical concerns at no additional cost.
Physicians can spend adequate time talking with patients, addressing the roots of medical
issues, and focusing on preventative care.

Health savings account

A health savings account (HSA) lets employers contribute pre-tax dollars to offset healthcare costs:

Employees and family members get tax-free help paying for qualified medical expenses.
Any remaining funds at year-end compound tax-deferred.
There is no penalty for non-qualified withdrawals when an employee turns 65.
An employee who turns 65 must pay the deferred taxes from the first contribution.

Want to Save Money While Hiring Top Industrial Workers?

The Ōnin can help your company save money on hiring industrial workers to help offset the costs of healthcare for your workforce.

Discover the 10 Questions You Should Ask Your Staffing Provider

Sources

https://www.bls.gov/iif/nonfatal-injuries-and-illnesses-tables/table-2-injury-and-illness-counts-by- industry-2022-national.htm
https://blog.healthshield.co.uk/blog/building-a-stronger-workplace-how-health-cash-plans-can-help-
reduce-absenteeism-and-turnover-for-industrial-workers
https://hsaforamerica.com/blog/health-benefits-are-key-to-employee-retention/
https://www.sureco.com/blog/ichras-a-revolutionary-solution-for-industries-with-high-employee-
turnover
https://roundstoneinsurance.com/blog/could-self-funded-health-insurance-be-hrs-antidote-to-
employee-dissatisfaction/