How to Choose Health Care Insurance for Small Business Employees
Are you an employer looking to find the perfect healthcare plan for your company? It might seem challenging to figure out, but all you need is useful information.
Even if you found some options on your local government website, it might not be up to date or provide the reasons for picking that specific service.
In this article, we will cover the most common and useful health care insurance for small business. Keep reading to learn more.
The SHOP Option
The Small Business Health Options Program is a constituent of the Affordable Care Act. Every state has its own SHOP store, which is run on its own or through the government. You can visit this marketplace and learn about, search through, and select the best possible option for you.
If you have a team of one to 50 employees, you are eligible to select a healthcare plan from the SHOP marketplace. When doing so, you will be able to filter through four plan levels, which indicate the price – bronze, silver, gold, and platinum.
Once you pick your option, your employees will visit the marketplace and select the plan that works for them under the coverage segment you chose for price. By doing so, you can ascertain yourself in knowing that expenses will be the same no matter the plan they want, and they will appreciate the ability to choose for themselves.
If you have less than 25 employees, you can apply for a tax credit, which is quite substantial, so consider that as well.
Private Health Exchange
A purchasing alliance, i.e., a private health exchange, is a privatized version of the SHOP. You pick the exchange that you will work with, and you will be responsible for paying for a specific amount per employee, depending on the percentage coverage you will be taking on.
While your employees get to choose their specific coverage plan, based on the ones offered by the alliance, with a private health change, there are no tax credits and not a lot of choices.
Nonetheless, the option is usually either more affordable or of better quality, and they also come with agent contacts who can advise you, and help your employees spend their pre-ta income on health insurance to save money.
Direct From Provider
If you want to spend some time figuring out the insurance, you can purchase a small group plan from a provider directly. This might cut costs and make you feel good, but there are some reasons why you should reconsider.
First, not all insurers sell directly, so the selection is minimal. Second, you are responsible for all of the paperwork, which makes it hard if your business is growing fast. Third, you might miss out on a better plan, because you’re confusing terminology or don’t have good knowledge of the industry.
Health insurance is not simple, so that’s why you go to spend some time figuring out what is right for you and your team.
The HRA Option
Health reimbursement arrangements allow the employer to help the employees with their payments for medical expenses, such as individual coverage premiums.
Those with less than 50 employees can choose not to provide a health plan, but instead, contribute to the health care costs through a Qualified Small Employer Health Reimbursement Arrangement.
In most states, this option allows the employer to provide an employee with additional plan selection without having to manage the group health plan coverage, which is excellent for someone who wants stability without increased cost.
Limited insurance allows employers to fill gaps in coverage, which might have occurred when an employee was the transition from one coverage to another plan, such as job change.
These plans are not marketplace coverage, and they are not available in all states. They cover various benefits, and you cannot receive any premium tax credits for using them either.
Some associations can help sponsor a health plan for your small business to get health coverage by banding with other companies, as a single “employer”.
The AHP is under the Department of Labor’s rule; thus, it allows employer groups to create AHPs, based on geography and industry. An AHP can cover some or all employers of a state, city, metro area, country, or just to businesses in a particular trade.
Now, owners without employees (sole-proprietors), and their families can also join an AHP, thus creating a new possibility for accessible, affordable, and effective health care insurance coverage.
Managed Health Care Insurance for Small Business
If you’re looking for group health care plans, but want to rid yourself of all the hassle that comes with it, starting with financial auditing, telemedicine, hr-consulting, payroll, compliance, benefits administration, so on and so forth.
In that case, you can work with someone like us, Health Consultants Group, who uncomplicates the workplace from the ground up via managed health care insurance for small business. Take a look at our product offerings and let’s find the best possible option for your business.
Health Care Done Right
Now that you know the options for health care insurance for small business, you are well on your way to finding the best possible choice for yourself and your employees.
By taking a proactive approach, and figuring out the why behind the healthcare coverage, you get to reap the benefits of such decision-making, and that’s valuable.
Now there’s nothing wrong with a managed solution, and in some cases – it’s more beneficial than you think, so if you’re interested, get in touch with us, and we will happily accommodate your needs.