Small business owners choosing between telehealth benefits face a crucial decision: Teladoc’s $89 per-visit model versus Allutional’s $39.95 unlimited monthly plan. The break-even point might surprise you, and family coverage changes everything about the math.
Small business owners face a critical decision when selecting employee healthcare benefits: should they opt for traditional pay-per-visit telehealth services or adopt newer unlimited care models? This choice impacts both budget predictability and employee satisfaction, making it vital to understand the true costs and benefits of each approach.
The fundamental difference between these models lies in cost structure and usage flexibility. Teladoc operates on a fee-for-service basis, charging $89 per general medical visit for uninsured patients, though this drops to as low as $0 for members with qualifying insurance coverage. The pricing varies significantly based on the type of care requested, with dermatology reviews, mental health sessions, and specialized consultations carrying different fee structures.
Allutional takes the opposite approach with its Health Sense plan, offering unlimited telehealth access for a flat $39.95 per employee per month. This subscription model includes 24/7 access to board-certified doctors and therapists with zero copays or deductibles. Allutional's approach aims to eliminate the financial barriers that might prevent employees from seeking timely medical care.
The cost difference becomes more pronounced when considering family coverage. Teladoc requires separate visits for each family member who needs care, meaning a family of four seeking treatment in the same month could face bills ranging from $356 without insurance. Allutional's plan covers the employee, their spouse or domestic partner, and up to six dependent children over age two under a single monthly fee.
The mathematics of telehealth cost comparison reveals clear break-even points that vary based on usage patterns. For employees who rarely use healthcare services, Teladoc's pay-per-visit model can be more economical, especially when insurance covers most or all visit costs. However, this advantage disappears quickly with increased usage.
At Allutional's $39.95 monthly rate ($479.40 annually per employee), the break-even point occurs when an employee or their family uses telehealth services approximately once every six to eight weeks. Given that telehealth visits for acute respiratory infections cost $79 on average according to a 2017 Health Affairs study, families dealing with common illnesses like seasonal allergies, minor injuries, or routine check-ins would find the unlimited model more cost-effective.
Small business budgets benefit from the predictability of Allutional's flat-rate structure. HR managers can forecast exact healthcare benefit costs without worrying about usage spikes during flu seasons or periods when multiple employees need care simultaneously.
Insurance coverage dramatically alters Teladoc's value proposition. Some health plans now include Teladoc visits, but most insurance plans still charge per-visit fees for telehealth appointments. Employees with high-deductible health plans, limited telehealth benefits, or those between insurance coverage periods face the full per-visit costs.
However, insurance coverage isn't universal or guaranteed. Additionally, insurance networks and coverage can change annually, potentially disrupting access to preferred telehealth services.
The administrative burden also differs significantly. Teladoc visits typically require insurance verification, copay collection, and coordination with existing healthcare coverage.
Allutional's model eliminates insurance-related delays and administrative overhead, allowing employees immediate access to care regardless of their primary insurance status. Allutional visits DO NOT require insurance verification, copay collection, and coordination with existing healthcare coverage. Members have unlimited telehealth appointments, without any per visit fees at all.
Family coverage represents one of the most significant differentiators between these models. Teladoc charges per consultation, meaning a family dealing with a common illness like strep throat or flu could face multiple visit charges if several members need evaluation and treatment.
Allutional's family coverage model shines in these scenarios. The single monthly fee covers care for up to eight family members (employee, spouse, and six dependents), making it particularly valuable for employees with larger families or those managing chronic conditions requiring regular monitoring.
The value proposition extends beyond pure cost savings. Families using unlimited plans typically report higher satisfaction rates because parents don't hesitate to seek care for children's minor concerns that might otherwise go untreated due to cost considerations.
Teladoc focuses on offering mental health, medical, and health provider consultations only. They are integrated with the health insurance process, requiring insurance approvals and paperwork.
Allutional differentiates itself by bundling telehealth with additional employee benefits that extend beyond traditional healthcare, such as vision, dental, and legal services. The Health Sense plan includes vision and dental services alongside 24/7 medical access, creating a more holistic employee benefits package.
The platform's streamlined approach targets working families specifically, offering integrated wellness tools and family health management features. Employees can access virtual doctor visits, wellness care programs, and family health tracking through a single interface designed for busy professionals who need efficient healthcare solutions.
Legal services inclusion sets Allutional apart from traditional telehealth providers. Employees gain access to legal consultation for common workplace and family issues, adding value that extends well beyond healthcare and positioning the benefit as a complete employee support system.
Employee adoption varies significantly between pay-per-visit and unlimited models, largely due to psychological barriers around cost. According to a survey from the Cigna and Oscar alliance, 74% of small-business decision-makers believe virtual care improves healthcare accessibility and affordability, but actual usage patterns tell a more complex story.
Teladoc users often exhibit conservative usage patterns, particularly when facing per-visit costs or uncertain insurance coverage. Employees may delay seeking care for minor issues, potentially leading to more serious health problems that require expensive interventions later.
Unlimited plans like Allutional's typically see higher adoption rates and more proactive healthcare usage. Employees report feeling more comfortable seeking care for minor concerns, preventive guidance, and early intervention when costs aren't a barrier. This behavioral shift often leads to better overall health outcomes and reduced absenteeism.
Implementation complexity differs substantially between the two models. Teladoc integration requires coordination with existing insurance benefits, employee education about coverage levels, and ongoing administration of usage tracking and billing reconciliation.
HR teams must manage multiple variables: which employees have qualifying insurance coverage, how to handle billing for uninsured visits, and how to communicate the complex fee structures for different types of visits. This administrative overhead increases with company size and insurance plan diversity.
Allutional's flat-rate model simplifies HR administration significantly. Setup involves straightforward employee enrollment with predictable monthly billing, eliminating the need for insurance coordination or usage monitoring. This simplicity allows HR teams to focus on employee engagement and wellness program development rather than benefit administration.
The competition for skilled employees has elevated healthcare benefits from basic necessities to strategic differentiators. Job candidates increasingly evaluate benefit packages as part of their decision-making process, with telehealth access becoming a standard expectation rather than a premium offering.
Unlimited care models appeal strongly to younger employees who value convenience, accessibility, and predictable costs. The ability to access healthcare without insurance constraints or per-visit fees appeals to millennials and Gen Z workers who may have experienced gaps in coverage or high-deductible health plans.
Companies offering extensive benefits packages report higher employee retention rates and improved recruitment outcomes. Allutional's positioning as a small business solution specifically addresses the challenge of competing with larger companies that can offer extensive benefit packages.
The family coverage aspect particularly appeals to employees in their prime career years who are managing growing families while building professional careers. Benefits that extend to spouses and multiple dependents provide significant value that employees can quantify when evaluating job offers.
However, Teladoc's integration with major insurance providers may appeal more to employees who prioritize continuity with existing healthcare relationships. The choice ultimately depends on company culture, employee demographics, and overall benefits strategy.
The decision between pay-per-visit and unlimited telehealth models requires careful consideration of your team's specific needs, usage patterns, and budget constraints. The Telehealth Scope provides analysis and guidance to help small businesses navigate the evolving landscape of employee healthcare benefits.
