Advantages of the reimbursement of employees for individual health insurance

Advantages of the reimbursement of employees for individual health insurance -

Small and medium enterprises are more affordable ways to offer employee benefits health. As such, they set formal plans to employees reimburse for individual health insurance.

The concept is simple. Not group health insurance offer. Instead, offer to use a monthly health allowance to employees individual health insurance.

employees their own health plan to buy, and report to the available amount in their balance.

There are three distinct advantages of the offers in this way health benefits.

This blog post is an excerpt from our eBook "The Step-by-Step Guide to premium refund". Download the eBook here

Three major advantages

# 1 :. Individual health insurance costs 20% to 60% less than group health insurance

Individual health insurance premiums cost up to 60% less than group health insurance. , for example, s ee this state by state comparison of tariffs.

comes addition, most employees are to reduce for a premium tax credit into account what they pay for individual health insurance. A recent analysis found that those who pay eligible for a tax credit on average only $ 82 / month for a health plan market

# 2 :. Individual health insurance is now better for employees

Second, individual health insurance is better for employees because:

• choice - with individual health insurance, select employees the coverage and the doctors, the most pay and budget for their family fit

• portability -. Employees keep their health insurance when they leave the company, because the health of the individual plans, regardless of employment

• guaranteed output -. All employees are (regardless of health conditions) will now be able to purchase an individual health insurance, which for them as existing group health insurance options

See the same or better: 5 reasons employees love premium refund

# 3: employers, employees can reimburse health insurance premium

defined Contribution agreements (also known as premium refund programs) allow small business employee health benefits for recruitment and retention purposes to offer, without absorbing the premium and administrative costs of a traditional group health insurance sponsorship.

Employers have created two options for setting up a formal Defined Contribution Health Plan:

1. taxable Healthcare Allowance - With this approach the company reimburse employees for their sound personal health insurance costs on a after tax basis

2. tax-free health reimbursement plan (HRP) -. With this approach, the company uses a section 105 plan Medical reimbursement to reimburse employees for their justified individual health insurance costs on a pre-tax basis. This type of plan is sometimes called Healthcare Reimbursement Plan (HRP), and must be designed with the Affordable Care Act comply with the market reforms

. See: How to Set Up Premium Reimbursement Program

The bottom line? group health insurance is broken. By reimbursing individual health insurance companies are able to offer able excellent health benefits in a controllable cost.

What questions do you have?

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