Nevada Small Business Health Insurance Options

Nevada Small Business Health Insurance Geographical Issues

Nevada’s unique healthcare landscape is also important to consider. This includes the more rural regions around Winnemucca and Hawthorne as well as busy cities such Las Vegas, Reno and Carson City. 

Nevada business owners need to be careful about the way their workers are distributed throughout the State. If executives are based in Las Vegas, they may not want to pick an HMO plan which only lets their employees see providers in their network. However, many employees who live and/or work in Jean will be far away from that provider’s network.

Nevada Small Business Group Health Insurance

For most Nevadan employers, the traditional health group insurance plan is their most preferred option.

Also, it’s the most costly.

What’s the process?

The employer enters into a contract with an insurance company, which is usually for profit. This insurance will provide workers’ health coverage and their families if they so desire.

All employers that have at least 50 employees are required to offer ACA qualified health insurance for all their employees who work over 30 hours per week. If they don’t, then they must pay a fine.

This means that the health insurance policy must cover the ten essential minimum coverages (MECs) as required under the Affordable Care Act. This includes:

• A ambulatory service is an outpatient treatment that you can get without going to the hospital.
• Emergency services
• Hospitalization includes overnight and surgical stays.
• Before and after the birth of a newborn baby, you will need to take care of your pregnant woman, your maternity period, and yourself.
• Treatment of mental disorders and substances use disorders including counseling, psychotherapy and other behavioral health services
• Prescription drugs
• Rehabilitative devices and services (devices that help those with chronic illnesses, injuries or disabilities to regain mental or physical skills).
• Laboratory Services
• Prevention and Wellness Services and Chronic Disease Management
• Dental and Vision coverage for adults isn’t an essential benefit.

Also, ACA stipulates that the health plan must cover both birth control and nursing.

It is true that traditional health care insurance can be expensive, but it does have the advantage of guaranteed enrollment.

When a worker enrolls for health insurance, whether it is during an initial enrollment when they initially qualify or a special open enrollment period that begins on the first of November each year or because of some qualifying event in their life, no insurer will deny the application or charge them a higher rate based on medical history.

Nevada Small Business Health Insurance Is Optional

Under the Affordable Care Act, employers with fewer than 50 workers are not required to offer health insurance at all.

There is also no requirement under Nevada state law. If you have fewer than 50 employees, you don’t have to offer health insurance at all.

You won’t pay a penalty.

However, it’s a great idea for employers of all sizes to offer health benefits—even for very small companies—because it may be much more difficult to recruit and retain quality employees without offering a competitive health benefit.

Especially in Nevada, where unemployment is generally low and competition for talent among employers is keen.

Nevada employers can potentially save a lot of money by offering a medical cost sharing or health sharing plan (more info below), and pay some or all of the costs for your employees.

Nevada Small Business Health Insurance HRA Alternative

To help your employees afford their personal health insurance, you could offer them a QSEHRA.

QSEHRAs can provide the following benefits to employers

1.)  Minimum contribution limit is not set

QSEHRAs allow you to set your own budget for HRA benefits and change it as needed each year, based on the cash flow in your business. It is up to you as an employer to decide how much money will be allocated for HRA benefits. This budget can change every year based upon the cash flow of your company.

QSEHRAs allow you to manage your healthcare budget. 

2.) Flexibility

It is possible to offer different amounts to employees depending on their marital and family status. It is possible to discriminate and offer a bigger benefit for employees with families compared to those without.

3.) Employees and employers are both eligible to receive tax-free treatment.

Employer contributions are deductible at full tax as a compensatory expense. Contrary to cash compensation, however, employees are not taxed on QSEHRA benefits if they continue their health insurance plans that include the ten minimum essential coverages as specified by the Affordable Care Act.

In this case, a QSEHRA will be more effective than providing employees with a health insurance allowance that they can use for other purposes or to pay their health insurance premiums.

4. QSEHRAs Promote Employee Choice

There are too many group health plans that limit employees to just one or a few options.

The HR department and the company’s management select these items, which are overpriced or unsuitable to workers. 

A QSEHRA offers workers and families a wide range of options and gives them the power to select a health plan which is right for them.

Nevada Small Business Health Insurance Taxation

As an employer, you can deduct the full amount of health insurance premiums that you pay. This is true under federal and Nevada state laws. Additionally, the premiums paid by employers are tax-free for employees.

The overall cost of health sharing plans is lower. Employees can deduct the monthly costs. Employer assistance in paying for health-sharing costs is taxable.

Nevada Employer Group Medical Insurance: Its Disadvantages

There are some disadvantages of traditional health care for employees and employers.

•  Cost

  We have already mentioned this before that the cost to provide health insurance is high. This can be especially true for industries with a large labor force, where costs per employee are higher than revenue.

  Some of the reasons why traditional health care insurance is so expensive are due to overkill. Government regulators at Washington and Carson City have packed health insurance policies up with mandated coverages, and requirements that do not make sense for many workers.

  For instance, many employees don’t require or want maternity and drug/alcohol addiction coverage.

  The result is that they are much less effective and economical than needed.

• Inflexibility

  Many group health insurance plans are a “one size fits all” approach that does not always meet the budgets and needs of employees. Group health insurance programs sponsored by the employer tend to be one-size fits all and may not adequately address specific employee needs or budgets.

  It may make sense for workers to buy their own plans on the market. They could take advantage of the Affordable Care Act’s subsidy.

  It may be cheaper to use a health-sharing plan. Innovative and affordable health insurance alternatives can provide a solution, especially to workers in excellent health with no existing conditions. 

  Here’s a more detailed look at health-sharing plans.

• Administrative burden

A full-featured health benefit comes with substantial administrative expenses. This includes managing paperwork and compliance. You’ll also need to audit plans and ensure no non-qualified employees enroll into them. They are vital to the smooth running of a health care program in an organization.

The plans can be very burdensome for employers with fewer employees who cannot justify hiring a staff member to handle the HR plan full-time. 

Business owners could also consider strategies like the Health Care Stipends, or Health Reimbursement Arrangements.

This alternative approach encourages workers to obtain their own coverage under the Affordable Health Care Act. Workers may then be able to take advantage of available subsidies. It removes employers from the process and reduces administrative and overhead costs.

Nevada Health Sharing Plans

Nevada small business owners can benefit from health sharing plans as an affordable and viable alternative to expensive insurance.

Medical cost-sharing plans are becoming a popular alternative to traditional group insurance in Nevada. They offer a more affordable option. Companies can save as much as 50% by switching to health-sharing plans from traditional group insurance. 

Nevada small businesses may be able to save upwards of $10,000 per year on coverage per employee for families and over $3,500 each year for individuals.

These programs offer a modern way of funding healthcare. Companies can provide their employees with access to top-quality healthcare and still control costs. Shared resources are the basis of health-sharing programs.

As an alternative to traditional health insurance which requires paying premiums, health sharing programs allow participants to make a set amount of cash per year.

Health Sharing Plans vs. Health Insurance

A health-sharing plan is different from a medical insurance.

In contrast, healthsharing ministries are non-profit associations that bring together people of similar minds to share in the costs of medical care. Contrary to most health insurance providers, who are for-profit companies, healthsharing ministries are nonprofit.

Nevada Small Business Health Insurance Mandated Coverage

Health insurance plans don’t have the same requirements. While state and federal laws require health insurance to cover many things people do not want, or need. These requirements do not apply to health-sharing organizations.

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 are different from traditional insurance policies in that they may require waiting periods to share costs for pre-existing condition treatment.

Many also require waiting periods before undergoing surgery… unless the injury or accident was not anticipated at the time of enrollment.

Health sharing organizations can offer a wide range of great benefits, at a fractional cost compared to a standard ACA group health plan. 

Under the Affordable Care act, health sharing doesn’t qualify to receive subsidies. Although the cost savings can be so large, switching to health sharing is still a good option for most people, even if their situation allows them to qualify. 

Nevada employers will often benefit more from switching to health share because small group insurance plans aren’t eligible for a premium credit.

Request a Group Quote for Your Company

Nevada Small Business Health Insurance Taxation of Health Benefits

This table explains the taxation of each alternative strategy available to small companies in addition traditional health insurance. HSA accounts grow tax-deferred and withdrawing money to pay for qualifying healthcare expenses is free of tax.

Nevada Small Business Health Insurance FAQ

Does health sharing have a waiting period on conditions pre-existing?

Certain health sharing plans have waiting times for preexisting conditions. Review the plan’s guidelines for specific information or talk to your Personal Benefits Manager.

Health Savings Accounts can be used to help employees with medical costs in Nevada.

HSAs let individuals set money aside for future medical bills before tax. Contributions from both employers and employees may provide tax savings and help reduce healthcare expenses.

Offer Direct Primary Care Plan (DPC) along with other cover options for Nevada 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.

What are the requirements for claiming the Small Business Health Care Tax Credits?

Businesses that earn a profit can claim a tax credit by filing IRS Form 8941 on their income tax return, whereas small businesses who are not taxed must file a Form Form 990T.

HSA for America cannot provide you with tax advice. Employers can consult their own tax advisors to get full information about how they claim the credit.

What is a Health Reimbursement Agreement (HRA)?

HRAs reimburse employees’ qualified medical expenses that are not covered under their health insurance plans. The employer determines which expenses are covered and how much money they will contribute.

Are there restrictions on how large a small business can be to qualify for the Nevada Small Business Programs?

QSEHRAs are only open to employers that have fewer 50 employees. You can still get HRAs if you are an employer with more than 50% of employees.

You’ll also be subject to an ACA mandate that you provide a qualified plan of health insurance for employees. If not, you may have to pay a fee. You should speak to your Personal Benefits Coordinator if your company is about to or plans on hiring its 50th full time worker, or equivalent, in the next few months. Your plan could be affected..