Business Resources

Health Insurance Options for Your 1099 Contractors: A Guide for Small Businesses

September 6, 2024
4 min. read

At Meridio, we understand that traditional health insurance options often fall short for small businesses. They can be expensive, complicated, and simply not designed with small teams in mind.

Why Offering Contractors Health Benefits Is Crucial for Retention

Did you know that 89% of Americans prefer employer-provided health coverage over other options? This makes offering health benefits not just a perk but a powerful tool for building contractor retention.

In a competitive market, your top talent might start looking elsewhere if they’re not getting the benefits they need. But here’s the good news—there are solutions that are built for small businesses to help you retain your 1099 workers.

But What’s the Real Impact?

Consider this: Platforms like Wingspan, which help businesses manage contractor operations, have shown that providing health coverage can lead to significant results.

After implementing health benefits, Wingspan reported a 10% decrease in contractor churn and a 3x increase in billable hours per week per contractor.These results highlight just how impactful offering health coverage can be for your business—enhancing both retention and productivity.

How Do I Offer 1099 Contractors Benefits?

Traditional health benefits often fall short for small businesses, but there are flexible, simple solutions that can work for your team without overwhelming your budget. Let’s explore some alternatives designed for 1099 teams.

Benefits Solutions for 1099s:

1. Health Reimbursement Arrangements (HRAs)

What it is: An HRA allows you to offer tax-free reimbursements for your contractors’ individual health insurance plans.

Why it’s a fit: Contractors get to choose the plan that works best for them, and you control the costs—no surprises.

2. Health Stipends

What it is: Provide a monthly allowance that your contractors can use toward their health expenses.

Why it’s a fit: It’s flexible, easy to manage, and empowers your contractors to take charge of their health.

3. Direct Primary Care

What it is: Offer your contractors a subscription to a direct primary care service, giving them access to routine healthcare services without the hassle of traditional insurance.

Why it’s a fit: This option ensures your contractors have easy, affordable access to primary care, helping them stay healthy and productive.

How Meridio Can Help

Meridio is here to make health benefits simple for your small business. We support your entire workforce—whether full-time, part-time, or 1099 contractors—with ACA-compliant coverage that’s easy to manage. No group minimums, no hidden fees, and no complex administration. Just affordable, effective health benefits that help you keep your team strong.

Build Loyalty with Health Benefits

Providing health benefits, even on a modest scale, can make a significant impact on contractor loyalty and decrease turnover. With the right options, you can stay competitive, attract quality workers, and ensure your business thrives. Elevate your contractor experience—find out how Meridio can help at www.getmeridio.com.

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Business Resources
May 2, 2025
5 min. read

A Practical Checklist for Business Owners: Renewing Employer-Paid Health Benefits

Business Resources

As a thriving business with a growing workforce, the complexities of health insurance and employee benefits shouldn't be your full-time headache. We understand that knowing the wellbeing of your workforce lies in your hands can feel daunting, but we're here to help.

The renewal period for these benefits is a crucial time to reassess, evaluate, and make decisions about your coverage offering that will not only impact your bottom line but also the long-term wellbeing of your team.

Here is a comprehensive checklist to guide you through the renewal process smoothly and effectively:

1. Review Current Coverage and Employee Satisfaction

Before jumping into new plans or options, take a moment to assess your current benefits package:

Are your employees satisfied with their health coverage? Consider conducting anonymous surveys to gather feedback on what they value most about their existing plans.

Examine aspects such as the network of providers, out-of-pocket costs, and additional benefits like dental or vision coverage. Understanding your team's needs is essential for making informed decisions during your renewal.

2. Evaluate Your Team's Claims Experience

Ask your broker or health benefits carrier to provide a claims history from the past year. Analyze the types of services your employees are utilizing most and assess the costs associated with those claims. This will help you identify trends and potential areas for improvement in finding affordable health coverage.

A thorough review of the services used by your team can empower your decisions and help you negotiate better terms with your insurance carriers. This also allows the opportunity to add supplemental coverages and wellness programs if needed, based on the claims history for your team.

3. Set a Budget for Benefits

Determine what you can realistically afford in terms of renewal costs. Account for premium increases, but set a clear budget and cap on your spend. If you elect for employee contribution, be sure you understand what that covers and how it affects your employees.

Consider how changes in premiums will affect your overall financial expenses. While providing valuable benefits is important, balancing costs with business sustainability ensures long-term success.

4. Compare Plans and Providers

Once you have your budget, start comparing different plans and see how they stack up against what you're currently offering. Look beyond just the premium costs; evaluate the coverage, network access, co-pays, deductibles, and out-of-network options.

Partnering with a knowledgeable managed service provider like Meridio can save you time and ensure you explore all possibilities without the headache and complexity of navigating the market. They can help you find the best health benefits for your company.

5. Consider Employee Wellness Programs

Incorporating wellness programs can effectively enhance employee participation in your benefits program while reducing long-term healthcare costs. Consider options that promote physical and mental well-being, such as fitness reimbursements, stress management workshops, or telehealth services.

These initiatives not only attract new talent but help retain current employees by fostering a supportive work environment where employee wellness is a priority. Research shows that when considering a new position, prospective employees often choose affordable health benefits over better pay.

6. Regulatory Compliance Check

Health benefits are heavily regulated, with changes in the market occurring yearly. Ensuring that your plans comply with the latest Affordable Care Act (ACA) regulations will help you avoid hefty penalties. Another way to ensure your business is compliant is by partnering with a managed service provider such as Meridio. They simplify the benefits process and take care of everything from administration and set-up to enrollment and ongoing service.

Staying informed about changes in healthcare laws protects your business from potential penalties and legal issues. Consider consulting with a compliance expert to navigate complex areas if you don’t have a reliable broker or health partner.

7. Communicate Clearly with Your Team

Before the renewal process begins, effectively communicate with your employees about all expected plan changes and create a space for everyone to ask questions and review the new options. Hold an informal meeting and send out digital updates with enrollment reminders to ensure everyone is on the same page.

Giving your employees time to discuss health coverage options with their household and family allows everyone a fair chance to waive or elect benefit coverage. Provide materials that outline the new benefits, highlighting any modifications, costs, and important deadlines. This transparency fosters trust and helps your employees feel valued.

8. Review and Adjust Regularly

Health benefits should not be a once-a-year consideration. Make it a habit to periodically review your offerings throughout the year. Economic conditions, employee demographics, and market trends can shift, so staying adaptive is crucial. Speak with experts who can walk you through a cost comparison and answer questions to help guide your healthcare decisions. At Meridio, their experts help you understand your current costs versus average marketplace options to see where you could save or spend differently.

Regular check-ins with your existing health benefits carrier or broker can help you make more timely adjustments. Keep them on a first-name basis and rely on them to be your guide in the benefits space, being transparent with your business needs and expectations will go a long way.

9. Seek Feedback Post-Renewal

After you've completed your health benefits renewal, solicit feedback from your employees about the new plans and the enrollment process. Understanding how these changes affect your team's daily lives and productivity is critical for future decisions.

Use this insight to improve the benefits package during the next renewal cycle. Keeping an open line of communication with your team as the year progresses will allow you to have a clear picture of the wellness culture within your organization.

Setting Your Team Up for Success

Renewing employer-paid health benefits is a significant opportunity to enhance your team's welfare and safeguard your business's financial bottom line. By following this checklist and staying empathetic to your employees' needs, you can create a benefits package that not only meets compliance requirements but also builds a strong, loyal workforce.

Your team's well-being is an investment that pays dividends for your organization's success! Download our free 'Benefits Renewal Red Flags' checklist to be sure you're on top of the best healthcare options for your team. If you are considering other options but feel confused by all the choices, Meridio can help. We offer health benefits as a managed service, and it's our mission to simplify the process and remove some of the burden. Visit www.getmeridio.com to learn more.

Business Resources
April 18, 2025
2 min. read

Finding the Right Health Benefits, What Business Leaders Need to Know

Business Resources

As a business owner, your team’s well-being directly impacts the success of your business. Providing quality health benefits is more than just an added perk; it’s an investment in your workforce’s happiness, health, and productivity. But with so many options on the table, shopping for health insurance can feel overwhelming.

In this guide we will walk you through 10 questions you should ask when shopping for health benefits to ensure the coverage is a good fit for your team. By addressing these key considerations, you can make informed decisions that benefit your workforce and your business in the long run. 

10 Key Questions to Ask when Shopping for Employee Health Benefits

1. What Health Insurance Plans Are Available?

Start by exploring the range of health plans on the market. Look for coverage options that include medical, dental, vision, and mental health services. Assess whether the plans align with your team’s unique needs. If you’re unsure, ask your employees for input—a quick survey can provide valuable insights into their priorities.

2. How Much Will It Cost?

Understanding costs is crucial. Analyze the premium contributions, deductibles, co-pays, and out-of-pocket expenses for each plan. Strive to find a balance between affordability for your business and value for your employees. Clear communication about cost-sharing arrangements will also help set expectations for your team. Don’t just read the benefits summary, get on the phone with your recommended health insurance expert. They will be able to guide you to coverage best fit for your team.. 

3. Are Flexible Plan Options Available?

Not all employees have the same needs. Some may require family coverage, while others prefer individual plans. Offering flexibility can significantly improve employee satisfaction and participation rates. Look for providers that allow you to customize options based on the diverse requirements of your workforce. Doing so can mean the difference between employees enrolling or waiving coverage. 

4. What Is the Provider Network Like?

The quality of a health plan often depends on its network. Ensure the plans you’re considering include a wide range of doctors, specialists, and hospitals. Accessibility to reputable providers gives your team peace of mind and ensures they can receive the care they need without hassle. Ask your plan provider or benefits guide for a provider look-up, or coverage map and allow your team to review their current and prospective doctors within the new plan network. 

5. Are Wellness Programs Included?

Wellness programs are a great way to support your team’s overall health and potentially lower healthcare costs. Look for plans that include initiatives like fitness challenges, stress management workshops, and nutrition counseling. These programs promote healthy habits and can enhance employee engagement. 

6. How Is Prescription Medication Covered?

With nearly 65% of U.S. adults taking at least one prescription medication daily, comprehensive prescription coverage is a must. Investigate how the plan handles different types of medications, including generic and brand-name drugs. Clear details about copays and coverage levels will help employees feel confident in their benefits. Ask to see full lists of coverage tiers and access to a digital look-up, provide this to your team so they can research privately before making their decision on the benefits offering. 

7. Are Retirement and Savings Plans Available?

While health insurance is a priority, don’t overlook other benefits like retirement savings plans. Options such as 401(k)s or Roth IRAs contribute to your team’s financial security and long-term job satisfaction. Including these benefits in your offerings can set you apart as a top-tier employer.

8. How Is Coverage Administered?

Smooth administration is key to a successful benefits program. Ask about the enrollment process, whether an online portal is available, and how claims are managed. The easier it is for employees to navigate their benefits, the more likely they are to use them effectively. Don’t forget about ongoing billing, be sure you get clear answers on who is responsible for this reporting.  

9. Is Employee Support Available?

Health insurance can be complicated, and your team may have questions or concerns. A dedicated support system, such as a hotline or knowledgeable representatives, can help employees understand their coverage and resolve issues quickly.

10. What Are the Enrollment Periods?

Deadlines matter when it comes to health insurance enrollment. Make sure you’re aware of the enrollment periods and communicate them clearly to your team. Providing ample time and resources for decision-making ensures everyone has the opportunity to choose the plan that works best for them.

Final Thoughts: A Well-Cared-For Team Is a Productive Team

Navigating health insurance decisions for your workforce may seem daunting, but asking the right questions can simplify the process. By focusing on affordability, flexibility, and comprehensive coverage, you’ll create a benefits package that supports your team’s well-being and strengthens your business.

At Meridio, we manage health benefits for your team. Ready to learn more? Click here to explore Meridio’s Everyday Health Benefits.

Industry Insights
April 4, 2025
5 min. read

Health Insurance for 1099 Contractors: Navigating the Landscape

Industry Insights

As technology rapidly evolves in 2025, U.S.-based business owners are stepping up their game to minimize contractor turnover. One of the most impactful ways to retain top-tier talent is by offering comprehensive healthcare benefits. With the gig economy continuing to grow, access to affordable healthcare is no longer a perk—it’s a necessity. Looking back at 2024 and ahead to 2025, small businesses face unique challenges in standing out from competitors while holding onto quality contractors.

The 2024 Workforce Transformation

Last year was a pivotal moment for contractor and contingent workforce benefits, with major shifts in how businesses approached healthcare. As remote and hybrid work models became the norm, business owners had to rethink their strategies to accommodate the increasing demand for flexible benefits.

According to the Society for Human Resource Management (SHRM), 62% of companies expanded their benefits offerings for contingent workers in 2024, recognizing the competitive advantage that comprehensive healthcare provides.

Another key shift was the rising emphasis on holistic wellness. There was a notable increase in out-of-network claims from holistic health practitioners, signaling that workers are looking for more than just basic coverage. Reviewing your benefits package regularly and keeping contractors informed of new offerings can make a significant impact on retention and satisfaction.

By the end of 2024, it became clear that contractors want flexible, personalized benefits that adapt to their changing needs. Providing healthcare options that move with them could mean the difference between a long-term partnership and frequent turnover.

Why Health Benefits Matter More Than Ever

The numbers speak for themselves: 89% of Americans still prefer employer-sponsored health coverage. In the gig economy, this preference has only intensified over the last four years, becoming a key factor in career decision-making.

In today’s competitive job market, offering health benefits isn’t just about compliance—it’s a strategic move that sets businesses apart. When top talent has multiple opportunities to choose from, a strong healthcare package can be the deciding factor.

The Real-World Impact

Leading contractor platforms like Wingspan—a modern payroll solution for 1099 workers—have demonstrated the direct impact of benefits on contractor satisfaction and retention. Providing affordable healthcare options can reduce contractor churn by 10%, translating into a threefold increase in billable hours each week.

For platforms like Wingspan, partnering with Meridio, a provider specializing in affordable health benefits for contractors, was a game-changer. With seamless onboarding and instant access to expert healthcare support, businesses saw improvements in contractor satisfaction and loyalty.

Emerging HR and Staffing Trends in 2025

Gone are the days of one-size-fits-all healthcare. This year, businesses are shifting toward personalized, AI-driven benefits solutions. Think of it as a benefits ecosystem designed for the modern workforce.

AI-powered recommendation engines are now guiding contractors through benefits selection, ensuring they get the best-fit plan without hassle. However, human support remains essential—customer care teams will continue to provide hands-on assistance when needed.

Expect to see an increase in modular health coverage, allowing businesses to offer tailored wellness programs. Recognizing that each contractor has unique healthcare needs, companies are expanding access to benefits for part-time employees, seasonal workers, and freelancers alike.

Technology-Enabled Benefits Management

The integration of technology is revolutionizing how businesses manage contractor benefits. New digital platforms offer real-time health stipend tracking, blockchain-powered benefits verification, and centralized access to payroll reports, invoices, and hiring data—all in one place.

The Shift Toward Holistic Wellness

In 2025, mental health, financial wellness, and preventative care are at the forefront of benefits offerings. Today’s workforce values a proactive approach to well-being, and businesses that acknowledge this will stand out.

Robust mental health support is now a necessity, not a luxury. Offering coverage that includes psychiatrists and psychologists can significantly impact contractor retention. A strong behavioral health component within a benefits package can make all the difference in whether a contractor stays or moves on.

Financial wellness is another critical area. Contractors may not be full-time employees, but they still want financial stability. Offering options like 401(k) plans with employer matching can provide long-term security without reinventing the wheel.

Practical Solutions for 1099 Contractor Health Benefits

If you’re looking to enhance your contractor benefits program, consider these flexible options:

  • Health Reimbursement Arrangements (HRAs): HRAs provide tax-free reimbursements for healthcare expenses, allowing businesses to maintain cost control while giving contractors the flexibility to choose their own coverage.
  • Flexible Health Stipends: Monthly allowances for healthcare expenses let contractors manage their own coverage while minimizing out-of-pocket costs at the time of service. They also require minimal administrative oversight, making them an attractive option for businesses.
  • Direct Primary Care (DPC) Subscriptions: A newer approach to benefits, DPC plans offer predictable monthly costs for routine and preventive care, providing a streamlined healthcare experience without the complexities of traditional insurance.

The Role of Technology in Benefits Delivery

In 2025, AI-powered benefits platforms are simplifying enrollment, streamlining administration, and providing real-time insights into benefits utilization. Companies like Meridio remove the burden of benefits management so business owners can focus on growth while ensuring their teams have access to quality healthcare.

The Competitive Advantage of Contractor Benefits

Businesses that prioritize contractor health benefits in 2025 will gain a significant edge in attracting and retaining top-tier talent. Reducing turnover-related costs, enhancing company culture, and strengthening brand reputation are just a few of the advantages of offering comprehensive benefits.

Meridio: Your Partner in Contractor Healthcare Solutions

At Meridio, we specialize in transparent, straightforward health benefits designed for the modern workforce. Our ACA-compliant health plans provide competitive coverage across all 50 states, making benefits administration simple and stress-free.

If you’re ready to revolutionize your contractor benefits strategy, let Meridio help you build a competitive, future-proof approach. Visit our website today to learn more.