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

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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.

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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.

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Benefits Solutions for 1099s:

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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.

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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.

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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.

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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.

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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.