Small employers and their insurance brokers may be all too familiar with the small employer health insurance death spiral, a circumstance that caused cancellations to rising health insurance rates and health plan. This article takes a look at how the Death Spiral impact small employers, and the best solution to fight it. 
What is the small employer group health insurance death spiral?
, the Death Spiral begins when to pay more than attend the staff of the willingness of a cost of the employee in the employer plan. When this happens, the healthiest employees start the employer plan in favor of policies to decrease. This causes the remaining small employers risk pool to be, "sicker" which resulting in higher insurance premiums on renewal the following year.
Then, the process is repeated. Here, too, reduces the employer the benefit to keep the costs fall more healthy employees, and the rate in the following year
This immortalized Death Spiral until the small companies either: (1) , interrupts the plan; or (2) is not in a position determined by the insurer to meet the minimum contribution requirements or minimum conditions, and the plan is terminated by the insurer
A solution of the death spiral -. Premium refund
reshape facing double-digit growth in insurance premiums health, many small employers either eliminating health benefits or plans include higher deductibles, higher co-payments and a higher premium contribution from employees.
The best solution Death Spiral and still offer employee health benefits, but to fight, the group health insurance and individual health insurance transition staff and premium refunds.
With premium refund to cancel, the employer provides a monthly health allowance to employees to use individual health insurance -. instead of health insurance to contribute to a group
employees buy their own health plan through a broker or their national health insurance market and will be reimbursed for. their premium costs to fight them
premium refund available, the amount of up
, the Death Spiral , because:-
, the employer receives to acquire the business of selecting and health insurance.
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The average individual health insurance costs up to 60% less than group health insurance, the employer may have the same or a better level of coverage offer for less.
- Select
employees of the carrier and plan that fits their health and financial needs best. Individual health insurance is now guaranteed issue, meaning healthy and unhealthy employees equal access to coverage.
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With premium refund, there is no minimum participation requirements and no minimum contribution requirements. The employer may provide the benefits of an employee class, and place each contribution amount that fits their budget
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