The hospitality industry thrives on happy, healthy employees. They're more apt to greet customers warmly, show up on time, work hard, and go the extra mile to create a positive, welcoming environment.

But with premiums for employer-sponsored family coverage topping $17,545 this year, it's becoming harder and harder for hospitality leaders to support employees with affordable coverage. Yet, beginning Jan. 1, 2016, the Affordable Care Act mandates that businesses with 50 or more full-time employees offer minimum value coverage to their employees.

Between ballooning costs and government mandates, what's an employer to do?

Fortunately, there's an answer: Medicaid. Thanks to Medicaid expansion in 31 states, hospitality industry leaders can help eligible employees get affordable coverage that also benefits the business's bottom line.

Healthcare Challenges

In a 2007, a public health report documented the health attitudes and needs of hospitality industry workers. Results showed a series of health concerns unique to the hospitality industry.

In summary, survey data revealed that union members had higher exposure to secondhand smoke than their white-collar counterparts; they were also less likely to quit smoking, be covered by a smoking ban, or have insurance for smoking cessation services.

What's more, nearly half of all surveyed service workers — especially housekeeping staff — characterized their work as being chaotic and demanding, and 43 percent reported work-related pain within the past year. Results revealed a link between their pain and poor health for at least four days during the previous year, as undue stress can lead to health issues such as hypertension, heart disease, depression, ulcers, and various digestive problems.

While the service industry is demanding, it doesn't have to put employees' health at risk. Medicaid provides coverage for preventive and acute health problems like the ones described above. This means that many employees in the hospitality industry could see a healthcare provider for any of health challenges mentioned at little or no cost to them.

Coverage Gaps

According to a recent article in The New York Times, even if coverage is offered, most industry workers can't afford to purchase it. If monthly premiums do fit into their budget, coverage usually means a high-deductible plan with a large out-of-pocket payment before insurance kicks in.

Even with coverage, debilitating illness can lead to employees' inability to work, loss of wages, and bankruptcy. With minimal coverage for preventive care, even many insured employees tend to forgo care.

In addition, many times, employer-offered insurance only covers employees, not their families. Because business owners aren't required by law to include options for a spouse or children, most don't.

Third, most coverage isn't comprehensive enough. Even insurance that meets the Affordable Care Act's standards is often missing key benefits like vision, pharmacy, and dental.

For eligible employees, Medicaid is the answer. With low-cost dental, vision, and pharmacy coverage in most states, Medicaid enrollees can sleep better at night knowing an illness won't result in time away from work or added medical bills they don't have the funds to pay. Their dependents can also rest easy, as an enrolled parent's dependents and spouse receive coverage at no additional cost to the enrollee.

Medicaid offers big benefits for employers, too. Employees with low-cost health coverage are more likely to feel better, seek preventive care, get sick less often, and reduce the number of sick days they use. And when employees migrate from the company plan to Medicaid, the employer's share of the annual premium goes to zero. That's right — zero.

Tell Your Team About Medicaid

As a hospitality leader, it's your job to help employees understand which healthcare option is best for their unique situation.

Begin by clearing up any misconceptions your team might have about Medicaid. Inform them that millions of hard-working, employed Americans benefit from the program. Offer direct comparisons between the company plan and Medicaid, illustrating that Medicaid offers more comprehensive coverage at lower costs. Particularly for those with families, outline the benefits for dependents, and emphasize that the whole family can get coverage without increased premiums.

It's important that you frame the discussion positively. Don't use terms like "welfare" or "charity care," which are commonly associated with Medicaid's undue stigmas. Instead, use phrases such as "healthcare for working families" and "low-cost, comprehensive option" to signal that Medicaid is a path to better health.

For particularly skeptical employees, send them studies explaining Medicaid's benefits. Encourage them to do their own research about Medicaid, and be prepared to answer any questions they might have. Inform, but don't pressure — coercing an employee to choose a particular healthcare option is illegal.

Make It Easy on HR

Your human resources team can assist employees in their decision by helping them calculate their total household size and income, using technical Medicaid-specific rules, to determine eligibility. If their income falls below 138 percent of the federal poverty line, which comes to $33,465 per year for a family of four, then they're eligible to enroll.

To facilitate enrollment, one-on-one meetings between HR and eligible employees are the necessary next step, but be warned — assisting with dozens, or even hundreds, of Medicaid applications can quickly overwhelm the average HR department. Medicaid enrollment requires proof of citizenship and proof of income. With many employees unwilling to share information with their employer about family relationships and immigration status, it can quickly become an HR headache.

Consider using a third-party enrollment service to assist your HR team. In just a few minutes, many of these companies can determine eligibility without requiring your team to understand complex eligibility rules and application processes. Some companies will assist employees through the entire application process.


Running a well-respected hotel or restaurant relies on healthy employees with cheery dispositions. If your staff members are sick, stressed, or in pain and can't get the relief they need, your business and its reputation are in danger. Take care of your team — and your business — by helping eligible employees claim their Medicaid benefits.

BeneStream provides businesses innovative cost saving products and services by connecting their qualified employees

to government benefits. Our signature product, Medicaid Migration™ moves qualifying employees onto free government sponsored health insurance. Trusted by our clients and partners, we are the first and the best at what we do.

Benjamin Geyerhahn
CEO - BeneStream
309-256-6170
BeneStream