The insurance industry is a dramatic transformation from an employer-driven health model group to an employee-driven insurance model individual health. Many of these changes in the small business start.
Since the changes in the industry, standards on small business health insurance are no longer valid. Here are five myths about small business health insurance, we hear brokers and employers from health insurance, equal to 
myth. 1: Small group plans is around 20 years old
Many industry experts and economists predict off a massive shift of the group in the coming years health insurance. During small group plans can not go completely extinct, they will not provide the predominant way for the employer health insurance.
For example, Dr. Ezekiel Emanuel J. in his recent book "Reinventing American Healthcare" predicts that funded 2025 ", less than 20% of workers in the private sector traditional employer by the year obtain health insurance. "
S & P Capital IQ, a division of McGraw-Hill, came to a similar conclusion. S & P Capital IQ predicts that by 2020, 0% of American employees who could receive health insurance through their employers currently to individual health insurance and state exchanges be moved.
In a recent white paper, we discuss how the shift will initially start with small companies, that 60% of small businesses is the forecast for one employer contribution to individual health plans by 2017.
myth 2 traditional employer-sponsored health insurance eliminate: group health insurance is less expensive than individual health insurance
the second myth is that group health insurance costs less than individual health insurance. In fact, on average, individual insurance costs up to 60% less (see this state by state comparison).
This was before the Affordable Care Act entered into force in 2014 and is now to be true, as individual health insurance rates guaranteed output can be set and cover essential health benefits. In fact, the cost is an important reason why small businesses are the employees transferred to the individual health insurance.
Myth 3: group health insurance is better for employees
Prior to 2014 and the Affordable Care Act, individual health insurance plans and group health insurance plans were different. Individual health insurance plans could refuse to supply or provide more for coverage based on health conditions into account. One reason why employers offer group health insurance (despite the higher price) was because they do not find yourself worrying about sick employees able coverage with an individual health plan. With group health insurance, everyone is covered -. No questions asked
But now the playing field is leveled. Individual health insurance plans are guaranteed issue, so that all employees can find coverage regardless of health. In fact, many of the new health care reform provisions strongly prefer individual health insurance. Individual health insurance is now just as good (and in most cases better) than group health insurance.
In addition, individual health staff provides a wider choice available. The employees get the support, a network of doctors and level of coverage that best meets their health needs and budget.
Myth 4: small and medium enterprises do not contribute to employees' individual health insurance costs
Another big myth we hear is that the company can not contribute to the employee's individual health insurance costs. If in fact there are three ways, can do just that an employer:
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taxable Stipend: employer may a taxable stipend use employees provides health insurance to
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taxpayer subsidy for health insurance .: employer employee costs reimbursed for their justified individual health insurance on a tax basis to a health allowance from the society set.
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Tax-free health reimbursement plan: employer uses Section 105 of the IRC formally self-insured develop medical reimbursement plan to refund to employees for their justified individual health insurance costs on a pre-tax basis.
Read more about how employees individual health insurance costs.
contribute Myth 5: There is no role for Brokers in the individual health insurance market
Many health insurance agents and brokers their businesses in the group have established health insurance market , These changes in the market, they feel insecure about how to structure their business to thrive.
As an employer customers transition from group insurance to individual health insurance, there are ways to their business, such as the increase does not keep policy sales (individual health insurance, voluntary, etc.) -GROUP, included advisory fees, and receive revenue-sharing from the software solutions employers use employees to reimburse individual health insurance
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