health insurance costs rise to Explode - , and employers enormous cost challenges. In fact, less than half of all small businesses currently offer health insurance because it is too expensive. quickly come with open enrollment, many employers are looking for an alternative to the high cost of health insurance group. For these employers, is the emerging solution premium reimbursement for individual health insurance. While this solution is not new, have become the Affordable Care Act (ACA) changes created benefits for individual health insurance, which make a crucial time for health services.
Here's a look at the new individual health insurance benefits, premium refunds, and why the two are about to explode.
What's premium refund?
employers to reimburse employees for their individual health insurance premiums, a premium refund of program implementation.
First decide the employer 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.
With a premium refund plan, employees individual health insurance purchase of the carrier of their choice. The political decision has to be 100 percent to the employees, which can buy from an insurance broker all eligible policies, online, through the health insurance market, etc.
advantages of individual health insurance
One are canceling insurance group health the main reasons is that employers individual health insurance costs up to 60% less. Employees can for premium tax credits to qualify depending on their level of income, household size and suitability for other state-funded programs. Other factors that may affect the cost of individual health insurance include:
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Location (State / County)
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age
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type of health plan selected (coverage, carrier, etc.)
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tobacco use
In addition to being less expensive is the individual health insurance now guaranteed issue. The ACA pre-existing conditions exclusion ( "Guaranteed Issue") provision prohibits health insurers from denying to individuals because of a pre-existing condition coverage.
Individual health insurance offers employees greater choice and control by select a plan that fits their needs, including coverage and network. Since individual health insurance have selected and purchased by the employee, as car insurance, the employees get to keep their health insurance when they leave an employer.
premium reimbursement of individual health insurance is about to explode
There are numerous indications that from the group health insurance to change on the individual market that show.
New research from the work is based are, the question "Employee Benefit Research Institute (EBRI) raises advantages of a" crisis "or an uncertain future?" Paul Fronstin, director of health research and education program in EBRI , argued that the ACA, "levels the playing field, as never before," now reporting that health insurance has been no longer dependent on employment.
Fronstin also points out that "a workers their employer need more for health benefits is could not argue once the law is fully implemented and the health exchanges are a viable way to employer-sponsored health benefits. This raises real questions about the future of employment-based health insurance. "
EBRI research parallels what other industry experts say about the dilemma and death, financed by employer health insurance.
For example, Dr. Ezekiel Emanuel J. in his recent book" Reinventing American Health Care "predicts that by the year 2025", less than 20% of workers in the private sector is traditionally receive employer-sponsored health insurance. "
S & P Capital IQ, a division of McGraw-Hill, a similar Finally came. S & P Capital IQ predicts that by 2020, 0% of American employees that may currently receive health insurance through their employers individual health insurance are shifted and governmental exchanges.
in a recent white paper, we discuss, how to begin the shift initially with small businesses, predicting that 60% of small businesses is traditionally employer-sponsored health insurance eliminate the benefit of an employer contribution to individual health by 2017 plans
Conclusion
small company a driving force behind the switch of group health insurance premium refund in respect of workers individual insurance health because they are not subject to the employer shared responsibility provision. On account of the changes by the ACA, who prefer the individual health insurance market and the astronomical cost of the group health insurance, more and more companies, the possibility premium refund explore. more brokers their offers premium refund add addition plans.
What do you think about the shift to employees for individual health insurance reimbursed?
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