The number one problem for small and medium employers today is the exponential growth of group health insurance the costs. As a result, companies are looking for alternatives to group health insurance. The predominant alternative premium refunds, where business employees for individual health insurance refunded.
In this new Zane Benefits Whiteboard Session, J. D. Cleary, the benefits of i walks through ndividual health insurance and as a bonus set repayment plan.
For reference, here is a snapshot of this whiteboard week:
want to know more? Download this step-by-step instructions for premium refund.
Whiteboard Video Transcript
Welcome to todays Zane Benefits whiteboard session where today's theme is a premium refund. My name is J. D. Cleary. I have the opportunity to work in the past three years with insurance professionals, CPA, payroll companies, and especially companies working on their number one problem in their business today - and that is the exponential increase in the cost of health insurance for their employee [
The entire model is not sustainable. So, companies are looking for an alternative group health insurance and the alternative that most companies go with premium refund.
We here at Zane Benefits offer a product called ZaneHealth, a simple software tool to manage a premium refund plan in less than five minutes per month companies. The reason ZaneHealth works so well, and why it was built, is that individual health insurance is indeed a better product than group health insurance.
The first reason why election. Individuals get their own individual health insurance to choose for their family. Each family and individual has very different needs. So, if an employer can not offer health insurance group and instead employees can pick their own, each employee bring the deductible and network of doctors they want for their health insurance.
Second, portability. If an employee to purchase an individual health insurance, they do not bind to their employer or any type of employment. If they can, they leave the company in the future take their insurance with them. Do not be forced to an event where they have to worry about health insurance, because they were offered by their employers.
Third, guaranteed issue. From 1 January 2014, an individual health insurance application has become a control application. If you have ever filled in a medically underwritten individual health application before January 1, 2014, you know what I mean. Now the application is to purchase an individual health insurance, is about five pages long and is really easy.
Fourthly costs. Health reform has laid a massive cost advantage to individual health insurance. Individual health insurance costs less in almost every state in the United States now.
But on top of that there are premium tax credits only to the individual health insurance market, and only if the individual employers offer health insurance no group. So if a person (based on their household size and family income) to qualify for insurance premium tax credits, it is only if the employer does not offer group health insurance and it is only towards the purchase of individual health insurance.
Thus, premium refund - what's this? It's all really quite simple.
First, the employer will decide on a monthly health allowance. Employees buy their health insurance and the employer reimbursed you for them -. Moving a rule by wage-or perhaps through a separate check cutting
carried forward with the premium reimbursement arrangement, the first thing a business to do in order to decide, is to terminate their group health insurance - if they have to start a. This is be as simple as possible. If you have a group health insurance now, you can cancel it, and you can forward to move to a premium refund plan.
If you cancel your plan you do your employees a favor because you are a special registration deadline trigger. In this way you can your employees go to individual health insurance to buy, and granting them (if they qualify) the ability to obtain the individual health insurance market premium tax credits ... The fact that they were not able to get if you they just offer a group health plan. Thus, the employee then have 60 days where you go your group health plan cancel to buy a large individual medical policy for families.
The second step (and this is from the employer's perspective) is a premium set repayment plan. just do not do this now go on your own. There are all kinds of federal compliance and regulatory elements to be aware of. So make sure that you set up a formal legal plan to reimburse for themselves and their family (the company) enables employees for their individual health insurance.
you can do on a base, or you can do tax free on a. But most people prefer tax-free dollars. And this is done with a formal premium refund plan (in a formal legal framework).
Step 3 is to educate employees. Tell them exactly what you have done, what you have selected as a benefit to offer, and how great advantage of this is. The first thing is to help understand where they can go to buy individual health insurance. There are many online sites that are very helpful to buy individual plans, or you can recommend an insurance agent or agency to facilitate this purchase.
But go employees to use this submission of proof that they have bought their plan, so they can prove the fact premium refund plan to buy through their own policies, that they have actually bought insurance. And then you can report either cutting through a settlement or by a separate check, as we mentioned.
communicate to employees that this is an advantage both for the business and for them (employees or participants) because of the four elements that we discussed at the beginning: choice, portability guarantees -Issue, not much effort put into an individual health insurance application and costs. Both the company and the employees go to the cost of their health insurance save.
Thank you for today's Whiteboard session participate. I hope it was helpful and I look to see me to the next.
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