Despite health insurance coverage being vital to affording care in America, these offerings are still failing workers and driving them into debt. How can employers provide relief to their workforce?
Over 90% of the American population has some form of health insurance, according to the Congressional Research Service. Yet Americans carry $195 billion worth of medical debt, data from Survey of Income and Program Participation found. For many Americans, this means the money they lose every paycheck to their health plans won’t make a dent in ballooning
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As of July, anyone who works more than 29 hours a week at TailGate Brewery, a Tennessee-based restaurant chain, is entitled to 100% covered healthcare benefits, which include a preferred provider organization health plan, vision and dental. While this perk may be rare in the restaurant industry, it is more than necessary, says Liz Tarry, the marketing manager at TailGate.
“We saw how hard this industry was hit by COVID and the need for healthcare nationally,” says Tarry. “Even though we are a small business, it’s the responsibility of an employer to create a great place to work for their team, and 100% covered healthcare is one step towards that.”
TailGate is an independently owned craft brewery with five locations in Tennessee and a little over 150 employees. And like many restaurants over the past two years, it’s aware of the mass exodus of workers that left the service industry. Restaurant and hotel workers have been at the forefront of the Great Resignation, reaching a record high in November 2021, when one million service workers quit, according to the Bureau of Labor Statistics.
“We have to think about how we can recruit great people, and how we can retain the great people we already have,” says Tarry. “We have to take care of them.”
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For Tarry, taking away any financial burden that came with paying monthly health plan premiums signals to employees that their work is valued. Anyone who is not currently enrolled in TailGate’s health plan, but qualifies, will be given a cash stipend that equals what the company would have paid for the employee’s healthcare benefits until the end of the year when open enrollment is back and employees can formally enroll in the benefit.
TailGate is also ensuring the financial well-being of their workforce beyond their healthcare coverage. The brewery increased their 401(k) match to up to 4%, and has committed to offering a $20 per hour wage as their baseline rate. Notably, waiters are given $2.50 an hour, which is just 37 cents more than the federal minimum cash wage payment for tipped employees. However, according to Tarry, waiters on average earn $25 per hour with tips, which would amount to $48,750 a year for a full-time employee. This is around $1,000 above the average annual pay in Tennessee, but $3,000 under the national average.
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Tarry underlines that the company’s decision to cover healthcare benefits is just the start of their journey, and the team is considering expanding their PTO program, which currently does not extend to bartenders and barbacks. While Tarry knows progress does not happen overnight — their health benefits offering was two years in the making — she is optimistic about the possible precedents TailGate can set for the Tennessee restaurant industry.
“We have a goal of being the best workplace in Tennessee,” says Tarry. “We're excited to make this investment and it's something we're grateful to do. We think it's going to benefit us and our team in the long run.”
