The Growing Need for Employee Mental Health Benefits

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MEC Plans - Minimum Essential Coverage

Employee mental health has become a critical issue in the workplace, and it’s time for employers and benefits advisors to take notice. LIMRA recently reported that a whopping 75% of U.S. workers are dealing with mental health problems in 2024. That’s a huge number, and it’s only going to get worse if we don’t take action.

Gen Z is hit particularly hard, with over 91% facing serious mental health challenges that require professional help. This generation is known for being tech-savvy and having unique perspectives, and they’re looking for employers who take mental well-being seriously and offer real support.

But it’s not just about the employees themselves. Poor mental health is also taking a toll on companies, leading to lower productivity, more absenteeism, and high turnover rates. It’s a lot more expensive to keep training new employees than it is to retain and support the ones you already have.

So, what do employees actually want when it comes to mental health benefits? First and foremost, they want paid time off specifically for mental health reasons. They also want their employers to cover counseling sessions and provide insurance that goes beyond the basic copay for mental health services.

But here’s the thing: a lot of employees don’t even enroll in major medical coverage, often because they simply can’t afford it. And then there are those who aren’t eligible for benefits at all due to their employment status. We can’t leave these folks behind. Employers and benefits advisors need to work together to make sure everyone has access to mental health support, no matter what.

The key is to create mental health benefits packages that are tailored to the specific needs of each company’s workforce. By really listening to employees and understanding their unique challenges and preferences, benefits advisors can come up with customized solutions that actually make a difference. This isn’t just about checking a box – it’s about showing employees that their well-being matters and that their employer genuinely cares.

As we move through 2024 and beyond, it’s up to all of us to stay on top of the latest trends, keep the lines of communication open with employees, and never stop working to improve mental health benefits. It’s not always easy, but it’s absolutely essential.

If you’re looking for help navigating this complex landscape, don’t hesitate to reach out to the team at Evolved Benefits. We’re here to help you create a brighter, healthier future for your employees and your company as a whole. Visit our website and fill out the contact form, or find us on LinkedIn. Let’s work together to make a real difference in the lives of your clients and their employees.

Watch the full video here – https://youtu.be/oKubsMyoceA

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Target Industries for Brokers: Where MEC Plans Drive Results

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Insurance brokers often overlook the opportunities that exist within industries employing variable-hour and seasonal workers. Minimum Essential Coverage (MEC) plans offer brokers a pathway to serve these underserved markets while helping businesses maintain compliance and reduce turnover costs.

Understanding the MEC Opportunity

MEC plans provide preventive health benefits at affordable rates, making them practical for businesses with fluctuating workforces. These plans help employers meet Affordable Care Act requirements while managing costs effectively. For brokers, this represents a significant market segment with consistent renewal potential.

High-Opportunity Industries for MEC Plans

Security Services

Security companies typically employ guards across multiple shifts and locations. Employee turnover rates in this industry remain high due to inconsistent scheduling and limited benefits. MEC plans offer these employers a cost-effective way to provide healthcare coverage while improving retention rates.

Hospitality and Food Service

Hotels, restaurants, catering companies, and event venues rely heavily on part-time staff. These businesses often struggle with seasonal fluctuations and high turnover. MEC plans help stabilize their workforce by providing essential health benefits without the cost burden of traditional group health plans.

Construction and Landscaping

Construction companies and landscaping firms employ workers whose hours vary based on weather, project timelines, and seasonal demand. These industries benefit from MEC plans because they can maintain coverage year-round while accommodating workforce fluctuations.

Staffing Agencies

Temporary staffing agencies place workers across various industries and schedules. Many staffing companies qualify as Applicable Large Employers (ALEs) despite their contractors working variable hours. MEC plans provide compliance solutions while supporting workforce stability.

Transportation and Logistics

Trucking companies, delivery services, and logistics firms employ drivers with irregular schedules. MEC plans offer these businesses a practical way to provide health benefits while managing the administrative challenges of a distributed workforce.

Healthcare Support Services

Home healthcare agencies and assisted living facilities employ caregivers who often work part-time or variable hours. These industries face significant retention challenges, and MEC plans help demonstrate employer commitment to worker health and wellbeing.

Agriculture and Food Production

Agricultural businesses, including farms, ranches, and food processing facilities, employ seasonal workers throughout the year. These employers often underestimate their ALE status due to the variable nature of agricultural work. MEC plans provide compliance solutions while supporting workforce stability during peak seasons.

Retail and Grocery

Large grocery chains, retail stores, and shopping centers employ significant numbers of part-time workers. These businesses benefit from MEC plans because they can provide health benefits while managing the costs associated with high employee turnover.

Emerging Industries

Cannabis businesses, particularly in states with established markets, often employ hundreds of workers across cultivation, processing, and retail operations. These companies frequently experience high turnover as employees move between competitors. MEC plans help these businesses retain workers while maintaining compliance with employment regulations.

Why These Industries Need Your Help

Many employers in these sectors assume their workers qualify as independent contractors or fail to recognize their ALE status. Business owners often calculate their workforce incorrectly, not accounting for the Full-Time Equivalent (FTE) method required under ACA guidelines.

This creates opportunities for brokers to provide valuable education and compliance solutions. By helping these employers understand their obligations and offering practical MEC solutions, brokers can build lasting client relationships while expanding their market reach.

Implementation Strategies for Brokers

Focus on Education

Many business owners in these industries lack awareness of their ACA obligations. Start conversations by explaining FTE calculations and ALE determinations rather than immediately pitching insurance products.

Emphasize Retention Benefits

Frame MEC plans as retention tools rather than just compliance requirements. High turnover costs these businesses significantly through recruitment, training, and productivity losses.

Highlight Enrollment Success

MEC plans typically achieve strong enrollment rates among part-time and variable-hour workers because these employees often lack other health coverage options. This makes the plans valuable to both employers and employees.

Provide Implementation Support

These industries often lack dedicated HR resources. Evolved Benefits offers comprehensive implementation support, from enrollment assistance to ongoing administration, which creates additional value for your clients.

Market Positioning for Success

Position yourself as a specialist in variable-hour workforce solutions. Many brokers avoid these industries due to their perceived challenges, creating opportunities for those willing to develop expertise in this area. And we can help.

Focus on the long-term relationship potential rather than immediate commission opportunities. These businesses often expand rapidly once they establish successful benefits programs, leading to increased coverage needs and referral opportunities.

Building Your Target Industry Practice

Start by identifying businesses in your area that fit these industry profiles. Research their workforce size and structure to determine ALE status. Approach these conversations with education and solutions rather than sales pitches.

Develop resources that help business owners understand their obligations and options. Consider creating industry-specific materials that address common concerns and misconceptions about ACA compliance.

The MEC market represents substantial opportunities for brokers willing to serve industries with variable workforces. By focusing on education, compliance, and retention benefits, you can build a successful book of business while helping underserved industries provide meaningful benefits to their employees.

These industries need brokers who understand their unique challenges and can provide practical solutions. The businesses that embrace MEC plans often become long-term clients with expanding needs, making this market segment particularly valuable for broker growth and retention.

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Protecting Your Clients from ACA Penalties: Strategies for Affordability

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This week we want to address the affordability criteria and the potential penalties that your clients may face. The IRS is issuing 226J penalty letters, and as an employee benefit advisor, it’s your responsibility to help your clients navigate these challenges.

In 2024, the affordability threshold for employer-sponsored health coverage under the Affordable Care Act (ACA) is 8.39% of an employee’s household income. This means that for the health insurance offered by an employer to be considered affordable, the employee’s share of the premium for the lowest-cost self-only coverage that meets the minimum value standard cannot exceed 8.39% of their household income.

This can be particularly problematic for blue-collar companies with lower-income employees, as the employer may struggle to afford their portion of the percentage, and the employees themselves may find the offered benefits unaffordable.

When faced with this situation, some employers may choose not to offer benefits at all, which puts them in a position that the IRS loves to target. As an employee benefit advisor, it’s essential to develop a strategy to protect your clients from these risks.

This is where Evolved Benefits comes in. We offer minimum essential coverage plans, plans that meet minimum value, and other strategies designed to safeguard your clients from affordability assessments that can lead to 226J penalty letters.

We specialize in providing the most affordable ways to protect your clients, especially those with low-income employees and limited budgets. Our tailored solutions ensure that your clients can meet their ACA obligations without breaking the bank.

As a trusted partner, Evolved Benefits is here to help you navigate the complexities of ACA compliance. We encourage you to reach out to us via LinkedIn, email, or phone to discuss your clients’ specific needs.

Don’t let the threat of ACA penalties keep you or your clients up at night. With Evolved Benefits by your side, you can rest assured that you have the strategies and support needed to protect your clients and help them thrive in today’s challenging healthcare landscape. Let’s work together to find the right solutions for your clients and ensure their long-term success.

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Meeting Employee Expectations: Why Inclusive Benefits Matter

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The workforce has changed. Today’s employees want more than just a paycheck—they value inclusivity, equity, and access to essential benefits. When employers offer benefits to more than just full-time staff, they show they’re ahead of the curve and they become the kind of place top talent wants to work.

Casting a Net Over the Entire Employee Population

Many blue-collar workers often feel overlooked in the workplace. Consider the staff working behind the scenes at hotel events or in similar service roles. These employees want to feel appreciated and included. They seek equity with management staff who receive full benefits packages.

As an employee benefits broker, helping clients adapt to this shift strengthens both their workforce and brand reputation. Here’s why inclusive benefits are no longer optional.

Aligning with Modern Workforce Expectations

Employees Expect Inclusivity – Workers across all roles want to feel valued. Offering benefits to part-time, variable-hour, and seasonal employees meets these expectations.

Enhance Employer Brand – Businesses that prioritize inclusivity in their benefits strategy attract and retain talent, strengthening their market position.

Stay Competitive – Job seekers now compare benefits offerings thoroughly. Employers with broader coverage stand out in the hiring process.

Addressing Post-Pandemic Awareness

Increased Health Consciousness – Since the pandemic, people have become more engaged with their health and wellness. Yet many workers lack access to healthcare when they need it most.

MEC Plans as Solutions – Minimum Essential Coverage plans provide affordable preventive care, helping businesses offer meaningful benefits without major expense. These plans can be paired with voluntary benefits to expand employee coverage options.

Workforce Stability – Healthier employees show better engagement, reducing absenteeism and turnover. When employees feel supported with health benefits, overall workplace morale improves.

The Broker’s Role: Helping Clients Stay Ahead

Brokers who guide clients toward inclusive benefits become trusted advisors in workforce strategy. By introducing cost-effective options like MEC plans alongside traditional coverage, you help employers meet evolving expectations while protecting their bottom line.

Most importantly, this approach makes your business “more sticky” by casting a larger net over the entire employee population. You’re not just serving the full-time staff, you’re helping clients improve employee morale and contributions across their entire workforce.

Taking Action

Start bringing Minimum Essential Coverage plans to your groups. Help clients gain better employee morale while making your business more stable. Our team has effective strategies for 2025 focused on helping brokers acquire new business and retain their existing clients.

Visit our contact page for email, phone and a form you can fill out to schedule a consultation about implementing these solutions for your clients.

How are you helping clients navigate changing workforce expectations? Let’s discuss.

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Understanding the Differences between MEC Plans and Major Medical Plans

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MEC plans and major medical plans are both types of health insurance plans, but they differ in several important ways.

A minimum essential coverage (MEC) plan is a type of health insurance plan that meets the minimum necessary coverage requirements under the Affordable Care Act (ACA). MEC plans provide basic medical coverage for preventive care services such as immunizations, wellness visits, and some screenings. However, MEC plans generally do not cover major medical expenses like hospitalization, surgery, or prescription drugs.

In contrast, a major medical plan is a more comprehensive health insurance plan covering a wide range of medical expenses, including preventive care and major medical services such as hospitalization, surgery, and prescription drugs. Major medical plans often have higher premiums than MEC plans but provide more comprehensive coverage.

Another key difference between MEC plans and major medical plans is that MEC plans are often offered as part of a larger benefits package that includes other types of benefits, such as dental, vision, and life insurance. Major medical plans, on the other hand, are typically stand-alone health insurance plans that do not include other types of benefits.

In summary, MEC plans provide basic coverage for preventive care services and are often offered as part of a larger benefits package, while major medical plans provide more comprehensive coverage for a wider range of medical expenses and are typically stand-alone health insurance plans.

Tommy Gaffney

VICE PRESIDENT OF SALES

Tommy is a Vice President of National Sales with over 17 years experience in healthcare, commercial, and personal lines markets. Connect with Tommy
📞 (888) 447-9994
in https://www.linkedin.com/in/tommygaffneyrsm/
✉️ [email protected]

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Top Questions to Expect as a Benefits Broker: How to be Prepared and Provide Value to Clients

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What questions should I ask a benefits broker?

When evaluating benefits brokers, you should ask several important questions to help you determine whether they are the right fit for your organization. Here are some key questions to consider:

What is your experience and expertise in employee benefits? Ask about the broker’s experience working with clients in your industry and ask for references from clients.

How do you stay up-to-date on the latest trends and changes in the benefits landscape? Ask about the broker’s process for staying informed about changes to laws, regulations, and market trends.

How do you help clients design and implement benefits programs? Ask about the broker’s process for developing a benefits program that meets your organization’s and employees’ needs.

How do you help clients manage costs and contain expenses? Ask about the broker’s approach to cost containment, and ask for examples of cost-saving strategies they have implemented for other clients.

What value-added services do you offer? Ask about the broker’s additional services, such as wellness programs, compliance assistance, or HR support.

How do you handle claims and customer service issues? Ask about the broker’s process for handling claims and resolving customer service issues.

What technology and tools do you offer to support benefits administration? Ask about the broker’s technology offerings, such as online enrollment, benefits administration platforms, and reporting tools.

How do you measure the success of your benefits programs? Ask about the broker’s process for measuring the effectiveness of their benefits programs and how they work with clients to make improvements over time.

When evaluating a benefits broker, it’s important to ask about their experience, expertise, processes, cost containment strategies, value-added services, service support, technology offerings, and success metrics. A good benefits broker should be able to provide detailed answers to these questions and demonstrate their ability to help you design and manage an effective benefits program.

Tommy Gaffney

VICE PRESIDENT OF SALES

Tommy is a Vice President of National Sales with over 17 years experience in healthcare, commercial, and personal lines markets. Connect with Tommy
📞 (888) 447-9994
in https://www.linkedin.com/in/tommygaffneyrsm/
✉️ [email protected]

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MEC Plans for Employers

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MEC stands for Minimum Essential Coverage, a type of health insurance plan that meets the minimum requirements under the Affordable Care Act (ACA). MEC plans provide basic health coverage but may only cover some of the essential health benefits required by the ACA.

Employers can offer MEC plans to their employees as a way to comply with the ACA’s employer mandate, which requires employers with 50 or more full-time equivalent employees to offer health insurance to their employees. Here are some key points to consider when offering MEC plans to your employees:
MEC plans provide basic health coverage: MEC plans are designed to provide basic coverage for preventive services and some medical services, but they may only cover some of the essential health benefits required by the ACA.

MEC plans are generally affordable: MEC plans are typically less expensive than other types of health insurance plans, making them an attractive option for employers who want to offer health coverage to their employees but need to keep costs down.
MEC plans may not meet the individual mandate: While MEC plans satisfy the employer mandate, they may not meet the individual mandate, which requires individuals to have health insurance or pay the penalty. However, individuals who are enrolled in MEC plans will not be subject to the penalty.

Consider offering additional coverage because MEC plans provide limited coverage; employers may consider offering additional coverage to their employees to supplement their MEC plans. This can help ensure employees have access to the necessary healthcare services.
Fortunately, experts like Evolve Benefits can help you navigate these complex regulations and provide the guidance you need to make informed decisions about your employee benefits offerings. They can help you understand the companies needing your help and even guide you through the top track.

MEC plans are a great strategy to stay compliant with the employer mandate while providing your employees basic health coverage. By offering MEC plans, you can help your employees avoid being uninsured and protect yourself from penalty fees. To ensure the success of this strategy, seek the help of experts like Evolve Benefits, who can guide you through the process and help you make informed decisions about your employee benefits offerings.

If you want to learn more about MEC plans or need help navigating penalty A or B, contact Evolve Benefits. They offer a free consultation and can help you understand everything you need to know about MEC plans and how to implement them successfully.

Tommy Gaffney

VICE PRESIDENT OF SALES

Tommy is a Vice President of National Sales with over 17 years experience in healthcare, commercial, and personal lines markets. Connect with Tommy
📞 (888) 447-9994
in https://www.linkedin.com/in/tommygaffneyrsm/
✉️ [email protected]

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What do employees want from their health insurance?

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Employees want health insurance that provides them comprehensive coverage, is affordable, and is easy to use. Here are some specific things that employees often look for in a health insurance plan:

Comprehensive coverage: Employees want health insurance that covers a wide range of medical services, including preventive care, primary care, specialty care, prescription drugs, and hospitalization.

Affordable premiums and out-of-pocket costs: Employees want affordable health insurance that fits within their budget. This can include plans with lower premiums and deductibles and health savings accounts (HSAs) or flexible spending accounts (FSAs) to help them manage out-of-pocket costs.

In-network providers: Employees want access to a vast network of healthcare providers, including doctors, specialists, and hospitals. They also want to be able to see their preferred healthcare providers without having to pay more out-of-pocket.

Easy-to-use benefits: Employees want health insurance that is easy to understand and use, with clear information on what services are covered, how to find in-network providers, and how to file claims. They also want access to helpful customer service representatives who can answer their questions and help them navigate the healthcare system.

Wellness programs and preventive care: Employees want access to wellness programs and preventive care services that can help them stay healthy and avoid costly medical expenses in the future. This includes health screenings, flu shots, and smoking cessation programs.

Employers who prioritize these factors in their health insurance plans are more likely to attract and retain top talent.

Tommy Gaffney

VICE PRESIDENT OF SALES

Tommy is a Vice President of National Sales with over 17 years experience in healthcare, commercial, and personal lines markets. Connect with Tommy
📞 (888) 447-9994
in https://www.linkedin.com/in/tommygaffneyrsm/
✉️ [email protected]

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What do employers want from their broker?

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What do employers want from their benefits broker:

Employers typically look for benefits brokers who can provide a range of services and expertise to help them navigate the complex world of employee benefits.

Here are some things that employers commonly look for in a benefits broker:

Expertise and knowledge: Employers want a benefits broker with a deep understanding of the employee benefits industry, including current trends, regulatory changes, and best practices. They want a broker who can provide expert advice and guidance on benefits strategy and design.

Customized solutions: They want a broker who can help them design a benefits program that is tailored to their workforce, budget, and business objectives.

Cost containment: Employers want a benefits broker to help them contain costs without sacrificing quality. They want a broker who can provide innovative solutions to help them manage healthcare costs and optimize their benefits spending.

Compliance and risk management: Employers want a benefits broker to help them navigate the complex world of regulatory compliance and risk management.

Technology and tools: Employers want a benefits broker who can provide them with technology and tools to help them manage their benefits program more efficiently. They want a broker who can provide online enrollment, benefits administration, and reporting tools to help them streamline their benefits operations.

The bottom line is that employers want a benefits broker who they can count on to be their trusted partner.

Employers who work with a broker who provides these services are more likely to have a successful benefits program that helps attract and retain top talent and doesn’t break the bank.

Tommy Gaffney

VICE PRESIDENT OF SALES

Tommy is a Vice President of National Sales with over 17 years experience in healthcare, commercial, and personal lines markets. Connect with Tommy
📞 (888) 447-9994
in https://www.linkedin.com/in/tommygaffneyrsm/
✉️ [email protected]

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Be the One to Bring Your Group Solutions

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As a broker, it can be challenging to navigate the current economic climate. The recession has affected the economy in many ways, including the rising cost of insurance.

To make matters worse, there are many different entities vying for your clients’ attention. It’s not just the traditional brokers down the street; it’s also payroll companies, voluntary benefit companies, and digital agencies, all trying to offer benefits solutions.

It can be overwhelming for brokers to keep up with all the different options and ensure that you remain competitive.

However, the key to success is being proactive and staying ahead of the curve.

You must offer more than just a traditional benefits package. You must provide innovative solutions that meet the changing needs of your clients.

One way to stay ahead of the competition is to understand the evolving landscape of benefits solutions. Keep abreast of the latest industry trends, regulations, and compliance issues to provide your clients with the best possible advice.

Additionally, you must leverage technology to streamline your operations and provide a more efficient service to your clients.

Another crucial aspect of being a proactive broker is being able to anticipate your clients’ needs. Clients want brokers who are proactive, innovative, and able to offer customized solutions that fit their specific needs. Take the time to understand your clients’ unique circumstances and tailor your offerings accordingly.

Ultimately, the goal of being a proactive broker is to become a trusted advisor to your clients.

Brokers have to work hard to earn loyalty and trust. By being attentive, proactive, and offering innovative solutions, you can help your clients navigate the complex landscape of benefits solutions and thrive in the challenging economic climate.

The role of the broker is more important than ever in these challenging times.

Brokers must be proactive, innovative, and adaptable. By doing so, you can remain competitive, build your reputation, and become a trusted advisor.

Tommy Gaffney

VICE PRESIDENT OF SALES

Tommy is a Vice President of National Sales with over 17 years experience in healthcare, commercial, and personal lines markets. Connect with Tommy
📞 (888) 447-9994
in https://www.linkedin.com/in/tommygaffneyrsm/
✉️ [email protected]

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