As companies struggle to attract and retain top talent, a growing number are turning to limited healthcare benefit plans for part-time and hourly employees.

CBS Personnel Holdings, Inc. (www .cbscompanies.com), a Cincinnati-based temporary staffing and executive search company with 145 branches in 18 states, offers a traditional medical plan to its internal staff of 850. About 5 years ago, the company also started offering a limited healthcare plan to thousands of temporary associates who work at client locations, says Suzanne Perry, vice president of human resources.

Recruitment, Retention 

The preferred provider organization (PPO) plan was introduced to help CBS Personnel Holdings remain competitive within the staffing industry, offer a plan that would be beneficial to its temporary associates, and increase the retention of those workers, and, as a result, increase client retention, Perry says.

"What we are seeing is a growing trend of companies offering these plans as a way to strengthen recruiting and retention and to benefit from healthier, happier employees," says David Huntington, president and chief operating officer of Planned Administrators, Inc. (PAI) (www.paisc.com), a subsidiary of Blue Cross and Blue Shield of South Carolina.

PAI administers CBS Personnel Holdings' limited healthcare benefit plan. Such plans provide coverage for day-to-day medical expenses, such as doctor visits and prescriptions, but not catastrophic coverage, he says.

Instant Enrollment, Deductions

CBS Personnel Holdings' temporary associates are eligible for their benefits as soon as they start working for the company, Perry explains. In any given week, the company employs between 20,000 and 23,000 temporary workers. About 6,000 temporary associates are enrolled in the plan and have weekly deductions taken from their paychecks, she says.

Their premiums vary depending on whether they enroll dependents. The weekly cost for an employee only is $17.95, while an employee plus one costs $36.49, and a family plan costs $48, according to Perry. Those contributions cover the entire premium, she says.

The PPO offered to CBS Personnel Holdings' temporary associates covers wellness visits, office visits, prescriptions, hospital stays (within certain limits), dental, and short-term disability up to an annual maximum benefit of $5,000 per person, Perry says. Plan members may go out of network, but co-payments are cheaper if they stay in network.

A $200 deductible applies for employee-only coverage, and a $500 deductible applies for family coverage, according to Perry.

Increased Enrollment, Retention

In the past, the company had offered a less robust plan on a limited basis to temporary associates. Since implementing the new plan, enrollment has increased. "We've seen a significant increase in the number of employees who have enrolled in the health plan," Perry says. "Increased participation leads to increased retention." 

And increased retention of temps promotes client retention. She credits the health plan with extending temporary associates' tenure by an average of about 4 weeks.

The health plan has been well received by associates. They are pleased with the claims administration process and the premium rates, which are in line with what they expect to pay for benefits, according to Perry.

CBS Personnel Holdings conducts training on the plan at least yearly for its operations staff and sponsors contests between branch offices to see which branch has the highest enrollment, she says. It also promotes the plan to potential hires during the application process and to new workers upon hire. The benefits staff also works to educate temporary associates about the plan early in the year in preparation for open enrollment in the summer.

Tips to Consider

Perry offers some advice to employers who are considering offering a limited healthcare benefits plan:

Look for a good package. Although such plans don't cover catastrophic expenses, they can help temporary, part-time, and hourly workers manage healthcare costs. Find an affordable health package that will help address employee needs.

Select the right vendor for your organization. "Anyone can come up with a standard plan," Perry says. "Have a vendor that will be flexible and willing to work with you." It is also important to find out in advance how the plan is administered. She recommends learning about the vendor's claims administration process, its partnerships, who manages claims, and how helpful the customer service department is.

Educate your workforce about the plan. When offering a limited healthcare benefit plan to hourly or part-time workers, be sure they, as well as staff members who oversee benefits, understand how the plan works. Your benefits staff (or operations team in the case of a staffing firm) should also be trained to answer members' questions and know where to refer them if additional information is needed.