You've probably heard the buzz about small business health insurance - costs rise this year and small companies are gearing up for large interest rate increases at renewal time. 
But here is an affordable small business to consider health insurance solution - do not offer health insurance. Sending employees on the individual insurance market health and offer an employer-financed contribution to individual health insurance.
You may have heard before this approach. It is commonly known as "Pure" Defined Contribution, premium refund or called a Section 105 plan ... and it is always a lot of buzz as well, because it provides small businesses affordable health insurance solution.
An Affordable Small Business Health Insurance Solution
includes this cost-effective solution three easy steps and all parties win (especially the staff)
Step 1 -. Making your group health insurance plan you (if you have one)
Step 2 - employees monthly "health care" Certificates enter on health insurance spending; whether be it tax-free over a Healthcare Reimbursement Plan (HRP) or a taxable stipend
Step 3 -. Allow employees to acquire health insurance in the health insurance exchanges and to receive premium tax credits, which limit their health insurance costs as a percentage of income.
Why this Small Business Health Insurance Solution Works
are employee benefits and employers with this solution.
What are the benefits for the employees?
With this concept, employees win. Here are the four key benefits for employees:
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choice employees chose the health insurance that best fits the needs of their families, including a choice between several health insurance and plan designs
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portability :. workers individual health insurance is not linked to employment, that is, they are able to take with them their health insurance when they change jobs
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guaranteed-issue .: Starting in 2014, all employees for individual health insurance admitted regardless of medical conditions are
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cost savings .: employees to 50 to reduce% or more of their health costs. Most employees have access to tax credits through the health insurance market . 9.5% of their household income if their household income is less than 400% above the federal poverty line (which is $ 95,400 per year for a family of 4 - If an employee qualifies for a tax credit, their cost of health insurance is limited to 2% in 2014 )
related article. See: 5 Reasons Employees love premium refund
What are the benefits for the employer?
win Employers With this concept. Here are the four main benefits to employers:
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Recruiting & Retention: This solution allows employers to attract and retain employees. In addition to the health allowance, the employee will also receive the benefits of individual health insurance (selection, mobility, guaranteed-issue and cost savings)
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Fixed costs .: constitutes allowance healthcare Reduced employers in full control of their "health care" costs
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Administration :. employers receive from the insurance business health, so that they focus on their own business
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savings .: costs Individual health plans an average of up to 60% less than group health insurance. The employer's contribution to health workers continues
related article. See:
Can I use my health insurance brokers are still working?Definitely. If you and your broker insurance decide this concept, a better fit for 1) is your business and 2) your employees, you can have a relationship with your broker.
In this new relationship, the broker a service would that every employee helps "navigate" to the individual health insurance market. In this way, if you can hire a new employee it to the health insurance broker for participation.
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