The escalating costs of healthcare in the United States are a significant concern for both employers and employees. For those working in the demanding field of automotive sales, health insurance benefits can be a critical factor in job satisfaction and financial security. This article delves into whether car dealerships typically offer health insurance to their sales representatives, and explores innovative approaches some dealerships are taking to address employee healthcare needs.
The Challenge of Health Insurance Costs for Car Dealerships
Providing comprehensive health insurance is a considerable expense for any business, and car dealerships are no exception. Traditional health insurance premiums have been consistently rising, placing a strain on dealership budgets and potentially impacting the benefits packages they can offer to employees, including sales representatives. Greg Balasco, owner of Lakeland Auto Mall, experienced this firsthand. “Every single year, we had to fight with the increase of premiums that I would have to pass along to the employees,” he explained, highlighting the unsustainable nature of year-on-year premium hikes. This financial pressure can lead dealerships to seek alternative strategies to manage healthcare costs while still providing valuable benefits to their workforce.
An Innovative Solution: Self-Funded Health Insurance Plans
Faced with rising premiums and dissatisfaction with conventional insurance plans, Lakeland Auto Mall decided to explore a different route: a self-funded health insurance plan. This approach, developed with the help of employee benefits advisor Liz Antaya, involves the dealership directly funding employee healthcare instead of relying solely on large insurance carriers like Blue Cross or Aetna. Antaya points out the significant financial impact of healthcare, stating, “Healthcare is normally the number two largest expense after payroll on any corporation’s budget.” Self-funded plans offer the potential to customize healthcare benefits to the specific needs of the dealership’s employees, potentially leading to better care at a reduced cost.
On-Site Doctor: Convenient and Comprehensive Care
A key component of Lakeland Auto Mall’s self-funded plan is the provision of an on-site doctor. Every two weeks, Dr. Christopher Salud, a direct primary care physician, visits the dealership, offering employees convenient access to medical care without disrupting their work schedules. This “Marcus Welby” approach, as Antaya describes it, cuts out the layers of bureaucracy often associated with traditional healthcare, allowing for longer, more personalized appointments – typically 30 to 60 minutes. Dr. Salud emphasizes the benefits for both patients and physicians, stating, “It gets back to practicing medicine the way you envisioned it, when you became a doctor… getting to know people, spending time with people and really helping them.” Salesman Mike Kuykendall, an employee at Lakeland Auto Mall, attests to the convenience and value of this service: “You can schedule your appointment during your workday. When your time comes, take your lunch break, step across the street to the building, see the doctor, go back to work.” Moreover, Dr. Salud’s approach extends beyond physical health to include mental health awareness, addressing mental health history with every new patient.
Nurse Navigator: Expanding Access to Specialized Care
Beyond the on-site doctor, Lakeland Auto Mall’s plan incorporates a “Nurse Navigator” service. If an employee requires specialized medical attention beyond the scope of primary care, they can utilize a dedicated 1-800 number to connect with a registered nurse. This nurse navigator guides employees to appropriate specialists within the network, ensuring they receive the necessary care while also managing costs for both the employee and the dealership. This service is provided at no cost to the employee when they choose a doctor recommended by the nurse, further enhancing the value of the benefits package.
Benefits of Self-Funded Health Insurance for Car Dealerships and Sales Reps
The adoption of a self-funded health insurance plan at Lakeland Auto Mall has yielded several positive outcomes. For the dealership, the savings can be substantial, ranging from 20% to 60% compared to traditional commercial plans. Owner Greg Balasco highlights that these savings, combined with improved healthcare quality, contribute to better employee retention and the ability to attract top talent. “If we’re taking care of them, if we’re helping them to be healthy, if we’re helping them make good medical decisions, then our retention is got to be greater. It has to be greater,” he asserts. Employees like Mike Kuykendall also experience direct benefits, noting reduced out-of-pocket premiums and superior healthcare quality: “This is the first year that our out-of-pocket premiums have gone down. So while it saves the company; it’s saving us as well… The quality of care that we get, I think he’s better than we’ve ever had.”
Conclusion
While the question “do car dealerships offer sales reps health insurance?” has a complex answer depending on the specific dealership and its location, innovative solutions like self-funded health insurance plans are emerging as viable alternatives to traditional models. Lakeland Auto Mall’s experience demonstrates that by taking a proactive and customized approach to employee healthcare, dealerships can potentially control costs, improve the quality of care provided, and enhance employee satisfaction and retention within the competitive automotive sales industry. For dealerships seeking to attract and retain top sales talent in an environment of rising healthcare costs, exploring self-funded health insurance options may be a worthwhile and beneficial strategy.
