Subscribe to Entrepreneur for $5
Subscribe

Poor Health

If you're waiting on the government or anyone else to do something about the rising costs of health benefits, face facts: If you want costs cut right, you have to cut them yourself.

By
This story appears in the April 2000 issue of Entrepreneur. Subscribe »

When Kiersty Lombar was shopping for health insurance for the seven employees of her year-old online coffee and gourmet-foods company, she faced two challenges. "We had limited funding, yet we needed a competitive benefit package to recruit people," she recalls. Lombar, 27, worked with an online insurance broker to find the right plan. She finally settled on a Preferred Provider Organization (PPO), a form of managed care that offers more freedom and a wider range of choices than the traditional health maintenance organizations (HMOs).



Today, Lombar's company, The Perk.Com, offers generous health-care benefits. The Austin, Texas-based company pays 100 percent of its employees' costs and 60 percent for spouses. "It's important for us to take care of our employees," reasons Lombar. "We see this as a recruiting and retention tool. Even though we felt like we were at the mercy of the insurance companies, we decided it was something we couldn't cut back on."

Memorial Day Subscription Sale- Unlock this subscriber exclusive article and more for 20% off today.

Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.

Get a year subscription today for 20% off. Just use code SAVE20 at checkout.

Entrepreneur Editors' Picks