With the cost of group health insurance is on the rise, employers are facing huge cost challenges and looking for inexpensive alternatives to group health insurance. The resulting solution is a premium refund for individual health insurance.
Employers fix their costs on a monthly basis, and employees can choose a health insurance plan that best meets their health and financial needs.
with premium reimbursement software helps employers repayment plan with the administrative tasks of the premium and ensures compliance.
Why use premium refund Software?
Some employers consider self-administer a premium refund plan without compatible software. However, may still be in compliance with regulations and healthcare reform costly, time-consuming and an administrative expense for the employer
There are two main reasons why employers should use premium refund software to manage their premium refund plan. : 1) time savings and ease of use, and 2) tax savings and compliance.
1. Time savings and ease of
Credible premium reimbursement software provider eliminates the time to offer cost and administrative burden health benefits. Employers who can choose a premium refund software vendors expect:
-
Spend less than five minutes per month reimbursement plan administration
-
Do they have access to their refund plan 24/7 online
-
Integrate refunds with their existing payroll system and HR processes
2. tax savings & compliance
premium refund software keeps the employer in accordance with the three key areas:
a) tax savings & IRS compliance
the IRS requires that a formal premium refund plan (with IRS-compliant plan documents) to be set up for an employer employee tax-free for their individual health insurance premiums.
The premium reimbursement software provider is to report to ensure that any refund for an IRS qualified health insurance and documentation on file for ten years save in the case of an IRS audit.
reimbursement plan must also IRS non-discrimination rules. A compliant premium reimbursement software provider should be able provide employees employees to separate classes. These classes should be based on bona fide job criteria, including average hours worked per week and job description / function.
b) Federal compliance
The federal government has guidelines for employers who want to contribute to employee IRS qualified health insurance premiums under HIPAA, ERISA and COBRA
-
HIPAA (Health insurance Portability and Accountability Act) .: premium reimbursement software provider process Protected Health information (PHI) for reimbursement to keep confidential the employer employee requests for their insurance premiums. The employer never has access to their employees' confidential medical information
-
ERISA (Employee Retirement Income Security Act) .: Under ERISA, an employer can not endorse a particular individual Health insurance. Since employee PHI is confidential, employers must never know what policies were acquired
-
COBRA (Consolidated Omnibus Budget Reconciliation Act) .: employers with 20 or more participants are to COBRA topic. Employers need their terminated employees the opportunity to continue their participation in the repayment plan for a period after completion.
c) ACA / healthcare reform
Finally, the Affordable Care Act (ACA) new rules for group health plans (including any premium reimbursement plans) including how to benefit have the staff presented (Summary of benefits and coverage or SBC), new reporting forms (720/5500) and new plan design requirements (eg prohibition of annual limits).
A credible seller premium refund software makes sure the employer the documents, data and schedule settings instead ACA-compliant must be
For. For a complete list of ACA, ERISA, IRS, HIPAA and compliance considerations COBRA, download this free Compliance Guide.
Photo Credit: Hubspot
0 Komentar