Kentucky Small Business Health Insurance Options
This document is a guide to assist Kentucky small business health insurance executives, independent professionals, and freelancers by providing them with the information they need to get the most effective and cost-efficient employee benefits.
You can still be competitive while offering benefits and a compensation package that will keep the top talent on your team.
Thinking Outside the Benefits Box: Kentucky Small Business Health Insurance Choices
Most Kentucky employers who offer health benefits choose a traditional group health insurance plan. Think Blue Cross/Blue Shield and Aetna.
While traditional health insurance is the most common solution, it’s also the most expensive, by far:
According to statistics from the Kaiser Family Foundation, the cost for employer-sponsored health insurance that covers a worker’s entire family was an average $22,225 per year as of the end of 2022.
Kentucky employees contribute an average of $6,554 towards their health insurance in the form of premiums – and more in the form of much higher deductibles and copays compared to a decade or two ago.
Those numbers put a very serious dent in both small employer budgets and the financial resources of their employees’ families.
The good news: For many Kentucky employers and plan sponsors, there’s a better way.
Kentucky companies also have several options that could reduce their expenses. Among them are:
- Health sharing plans (medical cost sharing)
- Health savings Accounts (HSAs).
- Health reimbursement arrangements (HSAs).
- Direct Primary Care (DPC) memberships
There’s no perfect solution that meets every business’s needs. Every situation is different. And each of these strategies has advantages and disadvantages.
Determining the optimal set of benefits and solutions for your business will depend on many different factors, including:
- the number of full-time employees or the equivalent
- your budget
- your staff’s age and health requirements and those of their dependents, if you choose to extend benefits to employees’ family members.
Each of these factors are crucial in determining will determine which strategy or combination of strategies is best for your small company.
Read on the go, download our Complete Guide To Small Business Healthcare Plans.
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Kentucky Small Business Health Insurance—Geographical Considerations
Kentucky has a unique healthcare landscape that includes busy cities such as Frankfort and Louisville, as well as more rural regions around places like Jackson and Lebanon.
Most traditional health insurance plans sold in recent years are lower-premium managed care plans, such as health maintenance organizations (HMOs) and preferred provider organizations (PPOs).
These plans function by contracting with narrow networks of care providers and negotiating deep discounts with them in exchange for patient flow.
But many of these narrow networks are regional, or focused around urban areas.
Employees who live and work in remote or rural locations, or far from a plan’s regional network, won’t get much benefit out of an HMO that has few or no providers in their area.
Plan sponsors should carefully consider the geographical distribution of their employees, and compare them to their plan’s network of authorized providers.
Many times, it’s best to switch to a lower-cost health sharing plan (described below) that gives more freedom to plan members to see any provider of their choosing.
Or, alternatively, employers may wish to pay a little more and use a plan with a bigger, more widely distributed provider network.
Kentucky Small Business Group Health Insurance
For most Kentucky employers, traditional group health plans are the preferred option.
But it’s also a very expensive option.
Here’s how it works:
Third-party health insurers, which are usually for-profit corporations, provide benefits to employees as well as their families if they so desire.
According to the Affordable Care act, employers with at least 50 workers must provide ACA health insurance coverage for their full-time employees.
What’s the process?
The employer will contract with an insurance company to cover the health care of their employees, and in some cases also that of their family.
According to the Affordable Care act, employers with at least 50 workers must provide ACA health insurance coverage for their full-time employees.
By law, these plans must include the following ten essential minimum coverages:
- Ambulatory services
- Emergency Services
- Hospitalization and surgical stays
- Maternity, prenatal, and neonatal care
- Mental health and substance abuse services, including counseling and psychotherapy).
- Prescription drugs
- Rehabilitative devices and services (e.g., devices that assist those who have disabilities, chronic conditions, or are injured to gain mental and/or physical skills).
- Laboratory services
- Prevention and wellness services and chronic disease management
The ACA additionally requires insurance companies to cover breastfeeding and birth control.
Advantages of Traditional Kentucky Small Business Health Insurance
Traditional health insurance for business is expensive in Kentucky. But for group sizes of between 2 and 50, health insurance has one important advantage: guaranteed enrollment.
This means that insurance company must take all comers. They can’t deny coverage or charge higher premiums because of his or her medical history or condition – provided the employee enrolls in the initial enrollment phase of employment when they first qualify for benefits.
If the employee purchases their own plan on the Obamacare marketplace, they have guaranteed enrollment if they enroll during the ACA Open Enrollment Period, which runs from November 1st to January 15th in Kentucky.
Note: Unlike some other states, Kentucky does not require insurance companies to provide guaranteed issue to self-employed individuals with a group size of one.
Kentucky Small Business Health Insurance: Disadvantages
Both employers and workers have important advantages to traditional group health plans.
- Cost
As mentioned above, providing health insurance at a monthly price can be prohibitive.
Some of the reasons why health insurance is so expensive are due to overkill. Washington, Frankfort and other government agencies have packed policies with requirements and mandatory coverages which make no sense for many people.
Traditional health insurance, for example, requires that carriers include coverage of drug and alcohol abuse, mental health, and maternity, which many workers do not need or desire. They are therefore much less cost-effective and efficient than necessary.
- Inflexibility
Group health insurance plans often offer a “one-size fits all” strategy, which may not adequately address the needs of specific employees and their budgets. By nature, group health plans sponsored by employers tend to provide only one or two options that are not optimal for certain employees.
Workers may be better served by purchasing their own individual plan, and taking advantage of the Affordable Care Act subsidy.
They may also be better off with a less expensive health sharing plan, discussed below. These innovative and affordable alternatives to health insurance can be a great solution – especially for workers who are in good health, with no pre-existing conditions
- Administrative burden
This involves auditing plans, managing the documentation, and ensuring that employees do not sign up non-qualified persons for the plan. The health insurance program within an organization must run efficiently and smoothly.
However, they are an enormous burden on very small businesses who lack the manpower to hire a HR department to administer the plan.
Kentucky Small Business Alternatives to Traditional Group Health Insurance
Employers with fewer than 50 full-time equivalents are exempt from the Affordable Care Act mandate to provide health insurance.
This means that unlike larger employers, you won’t have to pay a fine for failing to provide health insurance for your employees.
Kentucky also has no such requirement. The penalty doesn’t apply to you.
Yes, it’s a good to offer the best set of health benefits that you can. In todays’ tight labor market, the best, most talented workers expect their employers to provide some help paying for health care. And that includes very small employers.
Without some solid health benefits, it is very difficult to find and keep quality employees.
But for smaller employers, there’s no law that says your health care benefits have to be limited to a full-fledged Affordable Care Act-qualified traditional health insurance plan.
Small business and non-profit employers in Kentucky have several options and strategies available that can help save money and maintain competitiveness, while still providing a great set of benefits to employees and their families.
QSEHRA – The HRA Alternative to Traditional Kentucky Small Business Health Insurance
If you prefer, your small business can provide a health reimbursement arrangement to help your employees and their families access care with tax free dollars.
Specifically, businesses with fewer than 50 employees who do not offer a traditional group health plan can establish a Qualified Small Employee Health Reimbursement Agreement (QSEHRA) to help its employees purchase their own personal health coverage on an income tax-free basis.
Employees must enroll in or be enrolled in a qualified health insurance plan in order to use the benefit.
This has several advantages for Kentucky and national employers:
- No minimum required contribution.
- All contributions are tax-deductible for employers.
- Benefits are non-taxable to employees.
- Employees may be eligible for subsidies. However, their QSEHRA benefit will reduce their available subsidy.
How Are Kentucky Small Business Health Insurance Benefits Taxed?
As an employer, you can deduct all of the health insurance costs as business expenses under federal and state law. Additionally, the premiums paid by employers are tax-free for employees at both the federal and state level.
Kentucky Health Sharing Plans
Kentucky Small Businesses can choose to use health sharing programs as an alternative for their overpriced healthcare coverage.
Kentucky businesses are using medical cost sharing as an affordable alternative to group health insurance. Health sharing is a great way for companies to save money on their premiums. Companies can save as much as 50% by switching to health-sharing plans from traditional group insurance.
Kentucky small businesses may be able to save upwards of $10,000 per employee annually on coverage for a family, and up to $3,500 each per employee annually on coverage for a single employee
These programs offer a modern way of funding healthcare. Companies can provide their employees with access to high quality healthcare and still control costs. Shared resources are the basis of health-sharing programs.
The Affordable Care Act offers alternative ways to encourage people to get their own health insurance. The workers may benefit from the available subsidies. The employer is also removed from the whole process.
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Health Insurance vs. Health Sharing Plans
The health sharing plan is not the same as insurance.
Health sharing groups are associations made up of people with similar interests who share medical costs. Health sharing organizations are not-for-profit, unlike health insurance companies.
The Mandatory Kentucky Small Business Health Insurance Coverage
Unlike traditional insurance policies, which are required by federal and state legislation to cover many services that people do not want or require, healthsharing plans don’t have any such laws. The health sharing organization is not covered by the ten minimum essential coverage requirements.
It is not necessary for medical cost-sharing to cover addictions treatments for individuals who have never used drugs. Also, they do not need to cover any injuries caused by a member’s drunk driving.
Pre-existing Conditions
Health sharing plans can impose waiting times before sharing the cost of pre-existing medical conditions.
They also often impose waiting times for surgeries. This is true for all but accidents and injuries that were not foreseen before the membership.
These waiting periods help eliminate a significant amount of selection bias and allow health sharing organizations to offer a comprehensive set of services at a fraction if the cost of a nonsubsidized ACA eligible group health policy, or one that was purchased on the Commonwealth’s Kynect.ky.gov or Healthcare.gov website exchanges.
Note: Health sharing plans don’t qualify for subsidies under the Affordable Care Act. But the price savings is so great that many people still benefit from switching to health sharing, even if they do qualify for a subsidy, depending on their circumstances.
Kentucky employers are often more inclined to switch from small group insurance plans that receive a subsidy for premiums under the ACA.
Health Sharing and Network Restriction in Kentucky
While traditional health plans are managed by HMOs, PPOs, and other plans that employers sponsor, Health Sharing Plans offer greater choice in terms of choosing healthcare providers.
Kentucky health sharing organizations do not usually restrict the patients they accept to only providers who are part of their network. As a result, the members of health sharing plans have the option to choose whichever doctor or provider they prefer. The freedom of choice for people to choose their doctors.
Are You a Business That Can Benefit From Health Sharing?
Each company has its own unique characteristics. The best plan to use, be it a health sharing program or a standard group insurance plan requires careful evaluation.
It’s simple for Kentucky business owners to receive a complete case analysis with recommendations specific to their organization and employees.
Just click here to make an appointment with one of our experienced Personal Benefits Managers licensed in Kentucky, and we’ll start the process.
Prepare a list of employees.
Most often, switching over to health coverage will save employees thousands of dollars. It may not make sense to share health insurance with workers who already have preexisting conditions.
It is always free to consult with us and get an analysis.
Kentucky Small Businesses Can Benefit From Health Reimbursement Arrangements
Employer-funded health reimbursement arrangements (HRAs), which reimburse employees tax-free for personal healthcare costs, are a type of HRA.
Kentucky small businesses often just drop their group health coverage. Instead, the small business establishes an HRA. With the HRA they provide cash for employees to buy health insurance in the individual market using their pre-tax dollars.
This allows workers to take advantage of available subsidies—further reducing the net cost for the company and employee
After paying for the insurance premiums, any HRA funds left can be used to cover other costs, such as prescriptions and durable medical devices, copays, or deductibles. HRA benefits remain tax-free for the employee.
After paying for the insurance premiums, any HRA funds left can be used to cover other costs, such as prescriptions and durable medical devices, copays or deductibles. HRA benefits remain tax-free for the employee.
If any HRA money is left over after paying the premium, workers can tap their HRA benefit to pay for other out-of-pocket costs such as deductibles, co-pays, prescriptions, and durable medical equipment.Again, HRA benefits are tax-free to the employee.
By offering an HRA instead of a group insurance plan that is formal, you give your employees the freedom to select health plans that meet their preferences and needs.
To learn more about Human Resource Assessments (HRAs) for Small Businesses, click here.
HRAs for Small Businesses (QSEHRAs)
QSEHRA or the Qualified small employer health reimbursement arrangement (pronounced “Cue Sarah”) is available to businesses of all sizes.
This benefit is intended for businesses with fewer that 50 full-time staff or their equivalents, who offer no traditional group insurance plans.
Business owners can set the maximum QSEHRA amount they wish to contribute as long as it is within certain parameters. Kentucky employers are allowed to make contributions of up $5,850 (amounting to up $487.50 a month for an individual employee) and up $11,800 (amounting to up $983.33 if the employee has accompanied family members).
These employees can then use their money to get insurance for themselves via the health insurance exchange online or via brokers on the individual/family market. In this way, employees can keep their subsidy eligibility.
You can choose to reimburse employees’ health insurance premiums only or their premiums and any additional medical costs.
Special Enrollment Periods for QSEHRAs
If you decide to replace your current health insurance with an HRA and cancel the old plan, then your employees qualify for Special Enrollment. This is a window of 60 days during which employees can buy their own ACA qualified insurance plans with guaranteed issue without medical underwriting.
If you decide to replace the QSEHRA with your current group insurance, your employees will not be affected by any interruption in their coverage.
The Benefits of HRAs
Health Reimbursement Arrangements, or HRAs, have many benefits.
The money you spend on HRA benefits for your employees is fully tax deductible to you, as well as tax-free to your workers.
HRA funds are yours until they’re actually paid out to employees. You can use it as working capital. It is not required to be deposited with a third party.
HRAs are designed with a lot of flexibility by the employer, which can include what expenses they will reimburse.
If workers leave their company or become contractors, they do not lose coverage for health care. In the QSEHRA, workers own and control their health insurance policies. It is the employee who controls their insurance policy, and not the employer.
HRA Disadvantages to Kentucky Small Business Health Insurance
It is not the desire of all employees to have to choose and research their own plan. Some workers will need additional help navigating through the change.
You can get help from your HSA for America Benefits Manager if this happens. This ensures that no employee is left behind.
Simply have your workers select this link and make an appointment to receive personalized, individual services, or dial 800-913-0172.
Find out more by clicking here about health insurance alternatives for small Kentucky businesses.
Direct Primary Care: The Advantage
Direct Primary Care plans, or DPCs for short, are an alternative model of healthcare that has been gaining in popularity both in Kentucky and throughout the United States.
A membership model works: for a fixed, monthly, affordable fee, just like an gym membership, employees are able to receive as much care as they want, either by phone or in person.
With monthly membership costs as low as $80, DPC provides an attractive and viable approach for individuals to prioritize their health without the burden of copays or coinsurance.
DPC plans offer members unlimited access for routine primary, chronic, and preventive care.
Some of the services that are commonly offered by primary direct care include:
The following are some medical services provided by direct primary care doctors.
- Preventive care. DPC’s doctors focus on preventive medicine. They offer services including routine health checks, vaccinations and screenings.
- DPC’s doctors provide acute care for minor injuries, infections, illnesses, such as the flu and cold, as well.
- Chronic Disease Management DPC physicians help their patients to manage chronic illnesses such as diabetes, hypertension or asthma. Patients receive ongoing monitoring and treatment adjustments as necessary.
- Comprehensive physical exams. DPC Doctors offer thorough physical examinations in order to identify and assess potential health risks as well as provide individualized health recommendations.
- Urgent care. DPC’s doctors can often provide urgent care the same day or even next day.
- Appointments allow patients to get prompt medical attention when they have non-emergency problems.
- Lab and diagnostic services. DPC doctors can offer or coordinate laboratory testing, such as X-rays and ultrasounds. They may also perform bloodwork, urine analysis.
- Medicine management. DPC physicians can prescribe medications and monitor their efficacy, making adjustments as required. Also, they provide counseling and education about medication use.
- Mental health services Mental health is often included in DPC care. DPC doctors can provide therapy, counseling and even refer you to mental specialists, if necessary.
- Minor Procedures. DPC doctors can perform some minor procedures at their offices, including suturing wounds, skin lesion removal, injections of joints, etc.
- Referrals, coordination of services and care. DPC doctors are patient advocates who coordinate care and refer patients to specialists, hospitals and other providers of healthcare when needed.
There are also no co-pays or co-insurances because there isn’t an insurance company. Monthly subscriptions cover everything. It allows workers who are strapped for cash to receive the medical care they need immediately. Patients no longer need to postpone their doctor’s appointments because of a high deductible or co-pay.
In order to get coverage for services that DPC does not cover, patients may choose from supplementary plans like high-deductible plans, accident insurance or health-sharing plans. DPC covers routine medical care. Therefore, members are free to opt for more cost-effective options such as health sharing or traditional health coverage.
HSAs (Health Savings Accounts)
HSAs (Health Savings Accounts) can be very powerful tools to help workers manage their medical costs, as well as to help keep premiums lower for workplace health insurance plans.
Kentucky businesses and residents need all the tax breaks they can receive. It’s good to know that employer contributions made by employees into their Health Savings Accounts are fully deductible from Kentucky corporate income taxes as compensation expenses.
HSAs enable individuals to pre-tax funds for medical needs in the future. HSAs allow both employees and their employers to contribute, up to the annual limits set annually by Congress.
HSA funds grow tax-deferred and can be withdrawn tax-free to cover eligible healthcare costs.
Qualification for HSAs
To contribute to a health savings account, or to enjoy employer pretax contributions to an HSA, employees must enroll in a qualified high deductible health plan (HDHP).
According to the IRS, a high deductible plan is one that has a deductible at least of $3,000 or $1500 for individuals.
Total annual HDHP out-of-pocket costs (including copayments, deductibles, and coinsurances) cannot be higher than $7500 for individuals or $15,000. The limit is not applicable to outside-the-network care.)
How Can I Combine HSAs and Health Sharing Plans?
Currently, only one major health sharing plan preserves an employee’s eligibility for pre-tax contributions to a health savings account: The HSA SECURE Plan, which is available through HSA for America.
HSA SECURE Plan combines the benefits of tax-savings and health insurance of a Health Savings Account with cost savings of health sharing.
The employee must be self-employed, own a small business ownership or income.
HSA SECURE will not be available for straight W-2 workers. HSA-SECURE may work for you if the employee has a side business, freelance gig or small company, is in excellent health, does not have any existing conditions and can afford to pay monthly premiums.
The HSA SECURE plan is also a good option to save money for both you and your business partners.
You would need to have your employees enroll themselves in HSA SECURE. Once they have enrolled in an HSA and set it up, you may make contributions pre-tax on their behalf.
How Are Kentucky Small Business Health Insurance Benefits Taxed?
You now know about the different strategies that small businesses can use to supplement traditional health coverage. This table below will help you understand how to tax each alternative strategy that is available to small companies in addition the traditional health insurance.
| Plan Type | Employer | Workers |
|---|---|---|
| Traditional health insurance premiums | Tax deductible. May qualify for a tax credit (see below) | Non-taxable |
| HSA contributions | Tax deductible | Pre-tax, up to certain limits. No income limitations. |
| Health sharing costs | Tax deductible as a compensation expense | Taxable as ordinary W-2 income |
| Health reimbursement arrangements | Tax deductible | Benefits are non-taxable to the employee |
| HSA withdrawals | N/A | Withdrawals for qualified medical expenses are tax-free. Otherwise taxable as ordinary income. A 20% penalty for non-qualified withdrawals applies up until age 65. |
| Direct primary care costs | Tax deductible as a compensation expense | Taxable to the employee |
Address All the Levels of the Kentucky Small Business Health Insurance Pyramid
As shown in the below diagram, a good package of employee benefits should cover all of the levels of the Employee Healthcare Pyramid, from preventive health care to primary care for early detection and maintenance of health issues, up until catastrophic events.
Listed on the left are common traditional insurance-based care solutions.
Listed on the right we provide a range of affordable and alternative ways of providing protection that is meaningful for each employee level.
A good plan will provide employees with solutions that are affordable at all three levels. No employee should be forced to wait or forgo care due to the cost of a copay, premium or coinsurance.
You can work with your Personal Benefits Manager to create a customized plan for each employee that addresses the Care Pyramid at the appropriate level. These plans are often a fraction the price of traditional group insurance.
Health Care Tax Credit for Kentucky Small Business Health Insurance
The Small Business Health Care Tax Credit, was passed alongside the ACA and allows small business to claim a tax credit for up to 50 percent of employee health care costs.
The program was designed for businesses that have fewer than 25 employees or who hire workers with lower salaries.
For-profit as well as non-profit organizations can both claim credit.
* Has fewer then 25 employees. Average salaries are around $53,000. It is not common to include owners when determining the average employee salary or the number. The total number is calculated using “fulltime equivalents”. The two-half-time employees will equal one full-time.
* Employers must cover at least 50% the costs of insurance premiums.
* Make coverage eligible under the Affordable Care Act available via Commonwealth of Kentucky’s exchange.
Tax credits will no longer be available to employers who have 25 or more employees or average wages of at least $53,000.
How do I claim credit?
You can claim this tax credit on your annual income tax return with attached IRS Form 8941 (If you are a small business that is tax exempt, then you must file the IRS Forms 990-T tax return to claim, even if not otherwise required to file).
Taxes on your contributions to employee health care aren’t applicable.
It’s not true that I owe tax for my company this year. Can I claim the tax credits?
Yes. It is possible to carry this tax credit back to offset tax liability from the previous tax year.
Credits are refundable if your business is tax exempt.
You can consult with your tax adviser to get the full details of the Small Business Health Care Tax Credit.
Combining Kentucky Small Business Health Insurance Strategies
Combining different health insurance programs could be the smartest move you make to maximize your coverage.
Many employers find that they can reduce their costs by offering a range of packages to cover all employees’ needs, and still provide a comprehensive healthcare package.
You could combine Direct Primary Care Plans (DPCs), for the normal care of primary patients, with health plans that are low-cost and cover catastrophes.
This alternative to traditional group insurance can make it more affordable, either for the company or for employees.
If you give employees the option to sign up for an HDHP that qualifies for an HSA, or purchase an individual plan of health insurance, they can have more freedom and potentially lower costs.
What to do Now?
Contact us to receive a complimentary, free business health plan assessment and recommendation.
Your HSA for America Personal Benefits Manager will review your family and work situation with you. They’ll also discuss your budget, needs and employees’ contribution ability.
Many of our PBMs are successful entrepreneurs and business owners in their own right. Many of our PBMs have owned successful businesses and are entrepreneurs themselves. They understand what you need as a business leader and how to attract and retain top talent.
How can I combine health insurance with health sharing?
Both options can be offered side-by side. This allows employees to pick the plan that best fits their needs.
It is important to note that if too many workers opt out of group health insurance, your participation rates could drop below the minimum required for a plan. HRAs are a great way to reimburse your employees’ individual insurance costs, as they will come close.
Kentucky Small Business Health Insurance: Common Questions
Health sharing and insurance: What’s the difference?
In the traditional insurance industry, health insurance covers medical expenses. Health sharing is when members contribute to a common fund.
Some health sharing plans do have waiting periods before they cover pre-existing medical conditions. For more details on specific plans, it’s best to consult the plan guidelines.
What are the benefits of Health Savings Accounts for Kentucky employees?
HSAs are a way for individuals to put money aside before taxes to pay future medical expenses. Employees and employers can both contribute to HSAs, allowing for tax benefits and savings on future healthcare costs.
Do employers in Kentucky have the option to deduct contributions made by their employees towards HSAs when filing state income tax?
Yes. Kentucky’s state income tax allows for the full deduction of employer contributions toward employee HSAs.
If a company does not owe Kentucky taxes, can they still claim the Small Business Health Care Tax Credit?
The Small Business Health Care Tax Credit may be used to reduce income taxes owed in the prior year. It can also be carried forward up to 20-years.
What exactly is a Health Reimbursement Agreement (HRA)?
HRA is a fund funded by the employer that reimburses qualified medical costs for employees not covered in their insurance policy. Employers set the criteria for what is eligible, and they contribute accordingly.
HRAs may be used in conjunction with other insurance options, like individual or health insurance plans.
Yes, HRAs can be used alongside other coverage options. Some small businesses choose to cancel group health insurance altogether and use HRAs to reimburse employees’ premiums for individual policies. However, HRA money cannot be used to reimburse employees directly for health sharing plan costs.
How do I know which health insurance plan and cost-sharing option is right for me?
Take a team. To contact the Personal Benefits manager The consultant will provide you with a no-obligation analysis of your situation, including any prior conditions and budget. These professionals can assist in designing an optimal plan, which will optimize the value to your employees as well as control costs while helping you maintain competitiveness.
What is the Small Business Health Care Tax Credit and how do I claim it?
For-profit small businesses can claim the tax credit on their annual income tax returns with IRS Forms 8941, while those that are tax exempt must submit a Forms 990-T.
HSA for America is not a tax advisor. For more information, employers should contact their tax advisor.
Are employers allowed to contribute towards their employee’s HSAs?
You can make contributions into your employees’ HSAs. However, there are limits set annually by Congress.
Would it make sense to provide a Direct Primary Care Plan (DPC) along with other coverage options for Kentucky Small Businesses?
Combining DPC plans with lower-cost health coverage, like Health Share Plans, provides comprehensive and affordable healthcare solutions for both small businesses and their staff.
In Kentucky, are maternity benefits included in health-sharing plans?
Kentucky’s health insurance policies, healthsharing plans, and policies that cover prenatal and postnatal care often provide maternity care benefits. Certain health sharing plans limit the benefits available to children born out of wedlock.
Can HRAs be used alongside other coverage options like health sharing plans or individual health insurance plans?
Yes, HRAs can be used alongside other coverage options. Some small businesses choose to cancel group health insurance altogether and use HRAs to reimburse employees’ premiums for individual policies. However, HRA money cannot be used to reimburse employees directly for health sharing plan costs.
Do these small businesses have to be a certain size in order to qualify?
QSEHRA can only be used by employers with fewer that 50 employees. Other HRAs are available if the company you work for has 50 or more employees.
You must also comply with ACA requirements to provide a plan qualified by health insurance or face a penalty. Consult your Personal Benefits Specialist if, within the next year, you will be hiring more than 50 full-time employees or their equivalent. The plan that you design could change.
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