The cost of the group health insurance becomes prohibitive for small businesses. Dropping total health services is not a viable option for most small businesses, offering healthcare an important part of an employee's recruitment and retention. The Associated Press (AP) today published an article about the growing trend of small businesses their group health plans covered their employees for individual health insurance plans.
group health insurance is too expensive to pay for small to help Employers
of strong syndicated AP article featured a small entrepreneur from Greensboro, North Carolina, Monty Hagler, of "a growing number of small business owners connected, reporting renounce and employees pay more to compensate for the lost benefits Hagler ".
its group health insurance canceled when he realized that his premiums could rise as much as 38 percent. If the alternative plans from different insurers to explore, Hagler either found them too expensive or not comprehensive enough. Hagler pointed out that "If we do not dramatically changed our plan and went with the basic plan" Hagler said. "This is not sustainable"
More small employers helping employees with individual coverage
quoted the AP article, a survey of the Society for Human Resource Management that that almost 3 percent of 1,0 small businesses revealed plan surveyed on employees give a grant to buy their own health insurance next year.
small employers not divided under the responsibility of the employer, and are therefore not to offer their employees health insurance required. The AP points out that employees on the health insurance market can get a better deal, if they qualify, especially for a premium tax credit.
The AP also cited Ashley Hunter, owner of HM risk group that helps workers find new health insurance if their employers drop group coverage. Hunter noted, "we told them ahead probably come out to get a scholarship and a subsidy and coverage will be better than what you would get with the group plan.."
The disadvantage Offering employees a Stipend
As the article mentions, small employer group coverage fall a taxable salary, with the intention to provide that employees will use the additional funds to purchase healthcare. This arrangement is typical of employers want to offer the health benefits for the recruitment and retention, but can not afford group health insurance.
While this may seem like an advantageous arrangement for both sides, there are several problems with this solution. First, there is no guarantee that employees actually spend on health insurance with a scholarship, the money. In addition, many employers are tiered candidates for employers with formal health benefits in place to lose their desired peaks. During a scholarship for candidates may be slightly in response, would prefer the most formal, tax-deferred program health benefits.
offer another option for small employers dropping group health insurance
Rather than a grant, a better health insurance option for small businesses is the individual health insurance and a premium refund plan
This approach employers provide employees to spend a tax-free health money on individual health insurance -. rather than a group health insurance shopping. Employees have to purchase their health allowance an individual health plan of their choice and the right ones, the premium can access tax credits.
Here you can read the full article on the Associated Press.
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