How Can Maryland Employers Offer Benefits Without Paying the Premiums?

Hiring and keeping good employees isn't always easy, especially for smaller companies competing against larger employers with extensive benefits packages.

Many business owners want to provide additional financial protection but assume every new benefit requires a large employer-funded insurance budget. Fortunately, some voluntary employee benefits can be structured so participating employees pay the insurance premiums themselves.

What are voluntary employee benefits?

Voluntary benefits are insurance plans employees may choose to purchase, often through payroll deduction. Employers make eligible plans available and coordinate enrollment, while participating employees can cover the full insurance premium.

This structure can help expand employee options without requiring the employer to contribute toward the voluntary insurance premiums. Payroll administration, compliance, setup, or other obligations may still exist.

Which types of coverage can employers offer?

Depending on the carrier, group size, eligibility and plan design, options can include:

Accident insurance. Can pay specified benefits associated with covered accidental injuries and medical services.

Short-term disability insurance. May replace part of an employee's income during a covered inability to work due to illness or injury, subject to benefit periods and policy terms.

Life insurance. Can provide a death benefit to designated beneficiaries.

Critical illness insurance. May pay a lump sum following a qualifying diagnosis of certain covered serious illnesses.

Hospital indemnity insurance. May pay defined benefits for eligible hospital admissions or stays.

Cancer insurance. Offers supplemental benefits for covered cancer-related events and treatment.

Employer dental and vision benefits may also be available under employee-paid or cost-sharing arrangements.

How does employee-paid insurance work?

First, the employer discusses its workforce and benefits goals with a benefits professional. Then employees receive information about available coverage, eligibility, costs, and limitations.

Eligible employees can choose whether to participate. Premiums may be handled through payroll deduction according to the applicable arrangement and insurer requirements.

Importantly, voluntary benefits do not replace legally required coverage, such as workers' compensation, and should not be mistaken for comprehensive major medical insurance.

Can smaller Maryland businesses participate?

Potentially, yes. Voluntary benefits are not restricted to large corporations, although minimum group size, participation rules and product availability vary by insurer.

Contractors, cleaning services, electrical companies, professional offices, restaurants, and other employers may have solutions worth reviewing.

What if an employee leaves the company?

Some voluntary insurance policies offer portability, which may let an employee continue coverage after employment ends. Whether that option exists, what it costs, and how the employee pays depends on the particular contract and rules.

How can Lion Insurance Group help?

Leon Balakhani works with employers and HR teams to review voluntary employee benefits through his work with Colonial Life. He can help explain eligible benefits, coordinate employee education, and assist with enrollment arrangements.

The process begins with a conversation about the company and its employees—not a requirement to buy anything.

Ready to discuss your situation? Explore voluntary employee benefits for Maryland employers or review our employee benefits options.

Want to offer more choices without paying the voluntary insurance premiums? Explore employee benefits at Lion Insurance Group or schedule a benefits consultation.

Voluntary benefits are supplemental insurance, not a substitute for major medical insurance or required employer-provided benefits. Eligibility, employee contributions, portability, tax treatment and administrative responsibilities depend on plan design, law and employer arrangements.

Sources: U.S. Department of Labor: employer responsibilities under group health plans; Maryland Workers’ Compensation Commission: required coverage and compliance.