Health Care Coverage for the Restaurant Business

Health care coverage for the restaurant business faces unique challenges, in particular the high turnover of staff which means many employers do not wish to cover employees. The restaurant business has also suffered financial loss due to the economic recession, during which time customers are choosing to save money rather than eat out. This means restaurant business have less money to fund health care coverage. The new healthcare reform will also impact the types of healthcare coverage restaurants will be required to offer their employees as well as proving to be a confusing time for employers, calling on them to have a thorough understanding of their responsibilities under the new regulations.

When choosing health care coverage, restaurant owners must take into consideration the amount of full and part time employees to determine the size of their business and which heath care reform laws apply. The ACA or affordable care act, may also affect the current midi medical plans offered by many businesses. In 2014 mini medical plans may not meet the new regulations which will restrict the use of annual limits being applied to benefits. As up to 70% of chain restaurants currently offer these types of plans, the impact on these new rules surrounding health care coverage for the restaurant business will be great.

To provide business incentives, the ACA provides grants and funds for smaller employers and makes it easier for them to receive health coverage through health insurance exchange programs. As some small restaurant businesses are already struggling to remain open, finding ways to negotiate the new health care rules are imperative. Companies are therefore looking for ways to reduce costs in many areas of their business and HR departments are working hard to find ways to meet new regulations and to provide cost effective health coverage. To reduce these costs, companies are choosing to outsource their benefits and payroll administration by hiring independent HR consultants to advise them on cost effective strategies. HR specialists, have a thorough knowledge of the new health care regulations, including how they may impact business, and can offer creative solutions to help streamline HR tasks and reduce overheads. In addition to providing cost effective solutions, benefit solutions can provide employees with ways to manage their own benefits. This can reduce the amount of queries received by HR departments, freeing up HR staff to concentrate on other areas of the business. Benefit solutions such as ICON Benefits Module, offer comprehensive solutions which can make the benefit administration process easier, more efficient, and cost effective.

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