Small businesses are facing double-digit premium increases in this year renewal period. This applies in particular to avoid premium increases because of the Affordable Care Act for small businesses who renewed early last year.
Small businesses can have their health benefit costs by not renewing their soften group health insurance plans and transitioning employees individual health insurance with a premium refund paired plan. This article explains why this approach works to control health care costs and an estimated employees offer health benefits.
small and medium enterprises facing double-digit premium increases
has the cost of health care on a remained constant increase over the last ten years, and as such group health insurance is too expensive for small companies and their employees. In addition, expected interest rate increases at renewal time is to leave financial uncertainty for small businesses.
For example, small businesses health insurance almost doubled the costs since 09, with 91 percent of small businesses increases their health plan coverage at their most recent health insurance renewal.
found as early as February, a report by the Centers for Medicare & Medicaid Services (CMS) that around 11 million small business employees, more than 65 percent, the health insurance premium increases due to see the ACA.
isto blame for some of the small business premium increases during the ACA to increase group health insurance premiums and have entered into force prior to the ACA. Between 1999 and 2013, health insurance premiums group by 168 per cent to $ 5,884 / year for a single employee or $ 16,351 / year for a family increases.
The end result is that increased as a result of this premium rate, most small businesses are covered traditional group health insurance and on alternative ways to provide sustainable health benefits. can handle
How small businesses with double-digit premium increases
small businesses their group health insurance mitigate costs with a simple solution: do not renew the group health insurance. Instead transition employees individual health insurance and take a premium refund plan.
is implemented through a premium refund plan reimburse the employer employee tax-free for individual health insurance. Employers fix their costs on a monthly basis, and employees can choose a health insurance plan that best meets their health and financial needs.
In addition, individual health insurance costs up to 60 percent less than group health insurance, premium make an effective solution for the employer reimbursement who want to reduce health costs.
to the employees of the group health insurance transition, the employer must first decide how much they contribute towards the employee cost health insurance. This allowance or "defined contribution" may be the same for all employees, or it can vary on employee class and / or family status.
To a compatible refund set program, employers should follow five simple steps:
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a formal bonus up repayment plan
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Use reimbursement software help conformal plan administration easy making
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work with a health insurance broker or agent employees choose a plan to help
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to the compliance requirements with the IRS, ERISA, HIPAA, understand ACA and other applicable rules
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employees on the repayment program and the benefits of each insurance Educate
with group insurance renewals on the rise and many small businesses double-digit premium increases against, employers are enormous cost challenges and looking for cost-effective alternatives to group health insurance. The resulting solution is a premium refund for individual health insurance.
What do you think about the rising cost of group health insurance are? What do you think is the solution? Leave a comment below.
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