Less than half of all small businesses know currently offer health insurance because it is too expensive. That's more than 2.3 million small employers that do not offer health insurance for their employees.
as an alternative to group health insurance small employers will reimburse switching individual health insurance to a defined contribution solution. Here are five things that every small employers need to know about the individual health insurance.
1. Individual health plans can cost up to 60% less than traditional group health insurance
One of the main reasons why the employer group health insurance are canceling, is that the 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 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
2. Individual health insurance is now issue guarantees
the pre-existing condition exclusion of ACA ( "guaranteed issue") provision prohibits health insurance for individuals to deny coverage because of a pre-existing condition. This provision, known as "guaranteed issue" simply means insurance companies and employers can not limit, exclude, or deny coverage to employees due to a health condition based, that existed before the effective date.
3. The employees have more choices of Coverage and doctors adapt best to their family needs
Individual health insurance offers more choice and control to employees by allowing them to choose a plan that their own needs equivalent, including coverage and network. Employees can decide their own plans to work with their budget. These plans can be adapted to individual circumstances and age.
For example, when a young employee is relatively healthy and on a tight budget, a plan with a lower premium and higher deductible may be the right choice. On the other hand, older workers or workers with more healthcare needs, a plan with a higher premium and lower deductible can better plan the.
4. Individual health insurance is portable
Since the individual health insurance have selected and purchased by the employee, as car insurance to keep employees get their health insurance when they leave an employer. As a result, there is no more need for expensive, short-term insurance options.
5. The employer may Employee Refund for individual health insurance
The employer may reimburse employees for their individual health insurance premiums, a premium to implement reimbursement program. To set this up, the employer must first decide how much they are to employees contribute health insurance costs ". This allowance or" defined contribution "may be the same for all employees, or it can vary on employee class and / or family status.
to stay vorschrifts, those refunds should be followed with respect to the employer these tips:
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a formal premium refund plan
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Use to help refund up software, plan administration easy
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work with a health insurance broker or agent employees choose a plan to help
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to understand the compliance requirements with the IRS, ERISA, HIPAA, ACA and other applicable rules
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employees on the reimbursement program Educate and benefits insurance can offer individual health
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