The cannabis industry is booming, but dispensary owners are running into the same headaches as any other business owner: how do you attract and keep great employees? The answer often comes down to one thing that can make or break a hiring decision. Health benefits.
With the right approach, you can put together a benefits package that rivals what bigger companies offer without breaking the bank.
Why Health Benefits Matter
Let’s be real: hiring good people in cannabis is tough. Whether you need experienced budtenders, retail managers, or skilled cultivation staff, your potential employees have options. And while a competitive wage matters, healthcare access is often what seals the deal.
The numbers back this up. According to the Employee Benefit Research Institute, nearly eight out of ten workers say benefits are a major reason they stay with their current employer.
The problem? Traditional group health insurance can cost a fortune, especially for smaller dispensaries or those with part-time or seasonal employees. Plus, offering a group health plan can introduce federal compliance risks in a federally restricted industry.
The good news: there are smarter, low-risk, and fully compliant alternatives.
Health Savings Accounts: A Smart First Step
If you’re just getting started with employee benefits, Health Savings Accounts (HSAs) offer an easy and affordable entry point especially if you’re exploring high-deductible health plans.
An HSA is a tax-advantaged savings account your employees can use for qualified medical expenses. Doctor visits, prescriptions, dental work, and even some over-the-counter items. Contributions are tax-free, the funds grow tax-free, and withdrawals for qualified expenses are tax-free.
But here’s what makes an HSA work especially well in cannabis:
- No custodial red tape: Traditional HSA providers often reject cannabis-related businesses. A non-custodial HSA model avoids banking entanglements entirely.
- Compliance-aware design: Our HSA solution manages the compliance and banking risks for you. Critical in a federally complex industry.
- Low administrative burden: You don’t manage employee accounts directly. Employees choose their preferred HSA provider, banks or fintechs that accept cannabis income.
- Payroll tax savings: Contributions made via payroll reduce your FICA liability.
- Modern and employee-first: Employees manage their own accounts using user-friendly portals and apps, helping them save for today’s needs and tomorrow’s emergencies.
Even a small employer contribution,say, $25/month, goes a long way in demonstrating you care about your employees’ well-being and financial security.
ICHRA: The Group Plan Alternative
If you want to go beyond savings accounts and offer comprehensive health coverage, Individual Coverage Health Reimbursement Arrangements (ICHRAs) may be your best option.
Here’s how it works: instead of sponsoring a group insurance plan, you reimburse employees (tax-free) for the individual insurance policy of their choice. Employees shop for plans that fit their needs, and you help cover the cost.
Why this works for dispensaries:
- No federal entanglement: You’re not sponsoring a federally regulated group plan. You’re simply reimbursing, which keeps you compliant and protected.
- Cost control: Set your own budget and provide a predictable monthly allowance to employees.
- Ultimate flexibility: No minimum participation. No minimum number of employees. Works across locations and employment types. Full-time, part-time, and seasonal.
- Recruitment edge: Offer real healthcare support that rivals what bigger companies provide.
- No administrative headaches: You avoid plan selection, COBRA management, and compliance risks associated with group plans.
Best of all, ICHRAs are Affordable Care Act compliant when structured properly, helping you avoid penalties and stay aligned with federal guidelines.
Combine HSAs + ICHRAs
You don’t have to choose between these options. In fact, combining an HSA with an ICHRA creates a best-of-both-worlds scenario.
Here’s how:
- Use an ICHRA to reimburse premiums for individual health coverage
- Encourage employees to choose HSA-compatible high-deductible health plans
- Offer access to an HSA, giving employees a place to save for deductibles and out-of-pocket costs
This setup empowers your team with choice, portability, and savings while keeping your budget in check and avoiding regulatory landmines. It’s a modern approach that matches the pace and complexity of the cannabis industry.
Frequently Asked Questions
Can cannabis businesses legally offer these benefits?
Yes. While cannabis remains federally illegal, HSAs and ICHRAs are not cannabis-specific programs. They’re legitimate, compliant benefit tools used by employers across industries. The key is choosing a partner who understands the regulatory gray areas.
What about part-time or seasonal employees?
ICHRAs are customizable. You decide who’s eligible. Full-time, part-time, seasonal, or even remote workers.
Will offering benefits actually help with retention?
Without question. Health benefits make you stand out in a competitive hiring market. They’re a signal to employees that you value their wellness and financial future and that can drive real loyalty.
Getting Started Is Easy
You don’t need a giant HR department to offer competitive benefits. You just need the right strategy and a partner who knows how to navigate the cannabis space.
At Ameriflex, we help dispensaries and cannabis businesses build flexible, compliant benefit programs that work. Whether you’re exploring an HSA, an ICHRA, or a combo strategy, we’ll guide you through setup, administration, and support.
Ameriflex Can Help
Ready to take the next step and learn more?