How to Offer Health Benefits to Hourly or Part-Time Workers Without Breaking the Bank

By Your Health Magazine

Your Health Magazine

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How to Offer Health Benefits to Hourly or Part-Time Workers Without Breaking the Bank

Introduction

As the workforce continues to shift toward part-time, hourly, and flexible employment models, many small businesses face a significant challenge: providing health benefits to workers who don’t qualify for traditional insurance plans. For employers who want to offer something meaningful—but don’t have the budget for standard group insurance—there are increasingly practical, cost-effective alternatives.

Across Maryland and beyond, employers are exploring new healthcare models that prioritize access, affordability, and simplicity. This article explores the healthcare gap facing hourly workers, the financial limitations of small businesses, and innovative benefit solutions that are changing the way care is delivered.

The Gap in Healthcare Access for Hourly Workers

Hourly and part-time employees are often excluded from employer-sponsored insurance due to eligibility restrictions, limited hours, or high premiums. As a result, many go without regular medical care, which can lead to avoidable health issues, higher absenteeism, and increased turnover. According to data from the Kaiser Family Foundation, nearly 25% of non-elderly adult workers in the U.S. remain uninsured, with hourly workers among the most affected.

The consequences of this gap can be serious. Delayed treatment, unmanaged chronic conditions, and emergency room visits for basic care are common when people lack consistent access to primary care. For businesses, the ripple effect can include more last-minute shift cancellations, reduced productivity, and higher costs associated with employee churn.

Cost Barriers for Small Employers

Group insurance plans can be prohibitively expensive for small businesses, especially those with fewer than 50 employees. Employers face high premiums, administrative requirements, and strict participation minimums. For businesses operating on narrow margins—like restaurants, cleaning services, retail stores, and early childhood centers—this often means forgoing health benefits altogether.

According to a 2023 report from the National Federation of Independent Business (NFIB), nearly 60% of small employers cite cost as the number one reason they do not offer health insurance. And yet, they recognize that lack of benefits can hurt retention and morale.

Exploring Alternative Health Benefit Models

To meet the needs of modern workers, some businesses are exploring alternatives like direct primary care (DPC) or preventive care memberships. These models allow employers to pay a flat monthly fee to give their employees access to basic healthcare services such as:

• Primary care visits (virtual or in-person)
• Preventive screenings and wellness checkups
• Chronic condition management
• Routine lab tests

These services are not health insurance, but they offer employees affordable access to core care—without copays, deductibles, or networks. In many cases, they are offered alongside other supplemental services, such as mental health counseling or discounted prescriptions, to create a more well-rounded benefit.

One example of this model is Vitable Health. Vitable partners with small businesses to deliver simple, affordable healthcare through unlimited virtual and in-home primary care visits. The program is designed for hourly workers and includes lab work and preventive services, with no insurance required.

Employers can choose plans that match their workforce size and needs, without worrying about insurance carriers, deductibles, or network restrictions. The enrollment process is straightforward, and employees can schedule care through a user-friendly app—making it easy for them to actually use the benefit.

Benefits for Employers and Teams

Employers using alternative models like Vitable have reported:

• Lower employee turnover
• Fewer sick days and absences
• Higher employee satisfaction
• Better workplace morale
• Improved hiring competitiveness in tight labor markets

In industries where every team member matters, offering even a basic healthcare benefit can signal that the employer values their workforce. It can also reduce the long-term costs of high turnover, recruitment, and onboarding.

What to Look for in a Healthcare Alternative

When evaluating non-traditional healthcare models, employers should consider:

• What services are included (primary care, labs, mental health, etc.)
• How employees access care (in-home, virtual, clinics)

• Monthly cost per employee
• Whether it helps meet ACA compliance requirements
• Employee satisfaction and usage rates from other businesses

Some employers may also choose to offer these programs as an add-on to existing insurance or as a standalone option. The key is flexibility—finding a plan that meets both the company’s budget and the team’s needs.

Conclusion

Offering health benefits doesn’t have to mean navigating expensive insurance plans. With new models like direct primary care, small businesses can support the health of their hourly or

part-time teams in a way that’s sustainable, cost-effective, and employee-friendly.

For businesses in Maryland and beyond, providers like Vitable Health are making it possible to provide real care without the red tape. As healthcare evolves, so do the options—and

forward-thinking employers are already making the shift.

If you’re a small business owner looking for affordable health benefit options for hourly staff, explore how Vitable Health can help—vitablehealth.com.