Small Business Health Insurance Options in Louisiana
This document was created to help independent professionals and small business owners provide their employees with the healthiest, most affordable benefits. It is possible to stay competitive without sacrificing the overall benefits package and compensation you offer.
Small Business Health Insurance Louisiana Benefits
Louisiana has many choices for small businesses when it is about providing health coverage to employees.
Implementing a traditional health insurance group plan is by far the most affordable option.
Prices differ by age. According to figures from the Kaiser Family Foundation however, in the year 2022, group health coverage sponsored by employers for an employee and their family would cost on average $19,301.
Louisiana workers typically pay more than $6 731, or nearly 600 dollars more than average for the nation, towards their health insurance.
Louisiana companies also have other choices that can reduce costs. They include:
- Health Savings Accounts (HSAs).
- Health reimbursement arrangements (HRAs).
- Direct primary care memberships
- Health sharing programs
Your small business’s best strategy depends on a number of factors, such as the size and budget of your company, along with your employees and dependents.
Read on the go, download our Complete Guide To Small Business Healthcare Plans.
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A Geographical Perspective on Small Business Health Insurance Louisiana
It’s also crucial to consider the unique healthcare environment of Louisiana, which includes both busy cities like New Orleans, Baton Rouge and Shreveport, as more rural areas around places like Robeline and Lake Providence.
For this reason, Louisiana business owners should think carefully about how their work force is distributed around the state. It does little good for executives in company headquarters located in Shreveport to choose an HMO that restricts workers and their families to seeing in-network doctors when a large chunk of their employees and families live and work in Bethany, far removed from the plan’s network of providers.
Small Business Group Health Insurance Louisiana
Traditional group health insurance is the most common choice for most Louisiana employers.
Also, it’s the most costly.
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 for their spouses.
Employers with more than 50 employees have to provide ACA-qualified insurance plans for employees who are working over 30 hours a week.
It must provide the minimum essential coverages, or MECs as they are called in the Affordable Care Act. They are:
- Patients can receive ambulatory services without needing to go into hospital.
- Emergency services
- Hospitalization can include overnight hospitalizations and surgery.
- The care of newborns, pregnant women, and mothers (before and after the birth).
- Treatment for substance abuse disorders, mental illness and behavioral problems (including counseling and therapy)
- Prescription drugs
- The Rehabilitation and habilitative Services and Devices (services and equipment to assist people with disabilities or injuries gain mental and physical abilities)
- Laboratory Services
- Chronic disease management and prevention services
- Adult dental coverage and adult vision insurance are not considered essential health benefits.
Additionally, the ACA mandates that insurance policies cover contraception and breastfeeding.
It is true that traditional health care insurance can be expensive but there are advantages.
In the event that the worker enrolls within the first enrollment period, the special enrollment period, or in general, beginning with the November 1st open enrollment date, they will not be denied coverage nor charged a higher rate because of medical records.
Small Businesses Can Opt Out of Health Insurance in Louisiana
According to the Affordable Care Act (ACA), employers who have fewer than fifty employees do not need to offer any health coverage.
Louisiana also has no such requirement. It is not required to offer any health coverage if your company has fewer than 50 employees.
You won’t be penalized.
Employers of all sizes should consider offering health benefits, including small firms. Without them it could be more difficult for companies to hire and keep quality employees.
Louisiana has a low unemployment rate and employers are fiercely competing for the best talent.
Louisiana 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.
The Alternative is HRAs
If you prefer, your small business can provide a Qualified Small Employee Health Reimbursement Agreement (QSEHRA) to help its employees cover their personal health insurance without paying taxes.
QSEHRAs can provide the following benefits to employers
1.) Minimum contribution limit is not set
QSEHRAs do not require you to pay a fixed amount each year as is the case with pension plans. The employer can decide the budget they want to spend on HRAs and make changes as necessary each year.
QSEHRAs allow you to manage your healthcare budget.
2.) Flexibility
If you want to discriminate, then offer a higher or lower amount depending on the marital status of your employees. You can give a smaller benefit to single employees and more to employees who have families. This reflects the actual costs of buying health insurance.
3.) Employees and employers are both eligible to receive tax-free treatment
Your employer contributions are fully tax deductible as a compensation expense. But unlike cash compensation, your employees will pay no tax on their QSEHRA benefit—provided they maintain a health insurance plan that includes the 10 minimum essential coverages specified in the Affordable Care Act.
A QSEHRA offers a more attractive alternative to a simple health insurance allowance that can be used by employees for their health insurance and other expenses.
4.) QSEHRAs support employee choice
Too many traditional group health insurance plans force a widely diverse set of employees in vastly different circumstances into just one or two health insurance options.
They are usually overpriced, and not suitable for employees, because HR and management choose them, and not the workers.
Using a QSEHRA provides vastly more choices to workers and their families and empowers them to get the health plan that works for them.
Louisiana Taxes Employer-sponsored Health Insurance
As an employer, you can deduct all of the costs associated with health insurance as part of your business expenses under federal and Louisiana laws. Additionally, the premiums paid by employers are tax-free for employees.
Costs of the health sharing plan are lower. These plans’ monthly fees are tax deductible for employees. The employee is taxed if the employer pays for health share costs.
Employer-sponsored group health coverage is not without its disadvantages in Louisiana
Traditional employer group health insurance has some important disadvantages for employers and their workers.
- Cost
As mentioned above, providing health insurance at a monthly price can be prohibitive.
Part of the reason traditional health insurance costs so much is overkill: Government regulators in Washington and Baton Rouge have loaded up health insurance policies with mandatory coverages and requirements that make little sense for many workers.
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
The majority of group health plans are one size fits all, and may not be able to meet specific budgets or employee needs. The nature of employer-sponsored health insurance group plans is to only offer a few solutions, which may not suit the needs and budgets of specific employees.
It may make sense for workers to buy their own plans on the market. They could take advantage of subsidy programs under the Affordable Care Act.
It may also make sense to opt for a health-sharing plan that is less costly. 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
Managing a full-fledged health benefit involves substantial administrative costs. This includes managing documentation and compliance, auditing plans to ensure employees don’t enroll non-qualified people into the plan, and responding to questions from staff members. These duties are essential to ensuring that the health insurance program inside an organization runs smoothly and effectively.
But the plans can be a substantial burden for employers with a small headcount who cannot justify hiring a staff member for HR to run the plan full-time.
Alternatively, business owners can employ strategies such as Health Reimbursement Arrangements and health care stipends.
Alternative approaches can encourage employees to purchase their own coverage through the Affordable Care act. It may be possible to get subsidies if workers do this. This also removes the employer from the entire process, which reduces overheads and administrative costs.
Plans to Share Health Care in Louisiana
Health sharing plans are a viable and economical alternative to overpriced health insurance coverage for small businesses in Louisiana.
Businesses in Louisiana are increasingly utilizing medical cost sharing plans as a budget-friendly substitute for traditional group health insurance plans. By switching from health insurance to health sharing, companies can frequently save up to 50% on premiums compared to their old traditional group health plans.
Louisiana’s small business could save up to $10,000 annually per employee on family insurance and $3,500 for single coverage.
The programs are a new way to fund healthcare. They allow companies to provide employees with high-quality care while keeping costs down. The premise behind health sharing programs is to share resources between a group or organization.
As an alternative to traditional health insurance that involves payment of premiums, the participants in a Health Sharing Program make a set amount per year.
Health Sharing Plans vs. Health Insurance
The health sharing plan is not the same as health 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.
Mandatory Coverage
Health insurance plans do not have such requirements. Federal and state law require that traditional health insurance policies include many coverages for which many people are unwilling or unable to pay. Health sharing organizations are not subject to the Ten Minimum Coverage Requirements.
Medical cost-sharing plans are not required to cover the cost of addictions treatment for people who never use drugs, for example. And they don’t need to cover the cost of treating injuries as a result of the members’ drunk driving.
Pre-existing Conditions
The waiting period for surgery is often longer, except in the case of accidents or injury that was unforeseeable at the time of enrollment.
They also help to reduce adverse selection. These waiting periods are a good way for health sharing organizations to provide a comprehensive set of benefits, at a fractional price when compared with a non subsidized ACA group health policy.
Unlike traditional health insurance plans, health sharing plans may impose waiting periods before they will share the costs of treating pre-existing conditions.
Remember: 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.
Since small group health insurance plans don’t get a premium tax credit subsidy under the ACA, switching to health sharing often makes even more sense for Louisiana employers.
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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 Coverage
Unlike traditional insurance policies, which are required by federal and state legislation to cover many services that people do not want or require, health 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
The waiting period for surgery is often longer, except in the case of accidents or injury that was unforeseeable at the time of enrollment.
They also help to reduce adverse selection. These waiting periods are a good way for health sharing organizations to provide a comprehensive set of benefits, at a fractional price when compared with a non subsidized ACA group health policy.
Unlike traditional health insurance plans, health sharing plans may impose waiting periods before they will share the costs of treating pre-existing conditions.
Remember: 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.
Since small group health insurance plans don’t get a premium tax credit subsidy under the ACA, switching to health sharing often makes even more sense for Louisiana employers.
Health Sharing and Network Restrictions in Louisiana
Contrary to traditional managed-care plans, such as HMOs, PPOs and other employer-sponsored plans for group health coverage, Health Sharing Plans often give you more options when choosing your healthcare provider.
In many cases, health sharing organizations in Louisiana do not restrict patients to in-network providers. Instead, health sharing plan members have the freedom to choose their own doctor or prover. giving people the freedom to select the doctors of their choice.
Would Health Sharing Right for Your Business?
Every business is different. Choosing the best possible plan, whether it’s a health sharing approach or a traditional group health insurance plan, takes some careful analysis.
Good news for Louisiana’s business owners: it is easy to obtain a case study and specific recommendations tailored to your company and team.
Only click here to make an appointment with one of our experienced Personal Benefits Managers licensed in Louisiana, and we’ll start the process.
It will help if you have an employee census prepared.
In most cases, switching to health insurance will save thousands of dollars per covered employee. But health sharing may not be indicated if you have workers with pre-existing conditions.
It will help if you have an employee census prepared.
In most cases, switching to health insurance will save thousands of dollars per covered employee. But health sharing may not be indicated if you have workers with pre-existing conditions.
You can always consult with us and get an analysis for free.
Health Reimbursement Arrangements for Louisiana Small Businesses
Health Reimbursement Arrangements (HRAs) are employer-funded benefits that provide tax-free reimbursement to employees for individual healthcare costs.
Louisiana’s small businesses are often tempted to drop all group health coverage. Instead, small Louisiana businesses establish HRAs and give employees the funds to buy health insurance for themselves on the private market using dollars that are pre-taxed.
Workers can then take advantage of the subsidies available, which further reduces the cost to the employee as well as the company.
The HRA can be used to pay out of pocket costs like prescriptions, deductibles, copays, durable medical equipment, etc. 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.
Click here to learn more about HRAs for small businesses.
QSEHRAs—The HRA for Small Businesses
QSEHRA, or the Qualified small employer health reimbursement arrangement (pronounced “Cue Sarah”) is a type of HRA that can be used by small businesses.
The benefit is for employers with less than 50 employees full-time or equivalent and those who do not offer any traditional group health plan.
Within certain limitations, businesses are allowed to determine their own QSEHRA maximum allowances. Louisiana employers will be able to contribute as much as $5,850 per employee (that’s up to $487.50 a month), and $11,800 per family.
Employees take this money and use it to purchase their own insurance via the online health insurance exchange site or via a Personal Benefits Manager in the individual and family health insurance market. This preserves their eligibility for a subsidy, which they would not get under an employer-paid group health insurance plan.
As the employer, you can elect to reimburse your employees for their health insurance premium only, or for their premiums plus additional medical expenses.
QSEHRAs & Special Enrollment Periods
Your employees are eligible for Special Enrollment when you replace your existing health plan with HRA. This 60-day period allows your employees to purchase their own ACA qualified insurance plans with guaranteed issue without having to go through medical underwriting.
If you decide to replace the group insurance plan with a QSEHRA, this will make sure that none of your employees lose their coverage.
Benefits of HRAs for Small Business Health Insurance Louisiana
There are many advantages to Health Reimbursement Arrangements (HRAs).
Money you spend on HRA benefits for your employees is fully tax deductible to you, as well as tax-free to your workers.
You retain control of HRA money until it’s actually disbursed to your workers. It remains available to you as operating capital. You don’t have to deposit it with any third party.
The HRA benefit can be designed by employers in a way that suits their needs, and includes what costs you’re willing to cover.
Workers don’t lose health insurance coverage if they leave the company, or change to contractor status. With the QSEHRA approach, the worker owns his or her insurance policy, and controls it. Not the employer.
Disadvantages of HRAs for Small Business Health Insurance Louisiana
Not all workers want the responsibility of having to research and choose their own health insurance plan. Some workers may need extra help navigating the transition.
Your HSA for America personal benefits manager is ready to assist you. No worker will be left behind.
To schedule an individual appointment, have your employees Click this Link or call 1-800-913-0172.
Click here to learn more about alternatives to employer-sponsored health insurance for Louisiana small businesses.
Advantages of Direct Primary Care
Direct Primary Care plans (DPC) present an alternative healthcare model that’s undergoing an explosion of popularity in Louisiana and across the country.
The model is membership-based: For a monthly flat fee that is affordable, just like gym memberships, you can provide your employees with as many appointments as needed, in person or by telehealth.
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 provide members with unlimited access to routine primary, preventive, and chronic care services.
Examples of services commonly provided by direct primary care practices include:
Here are some of the medical services commonly 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 and illnesses such as infection, colds, influenza, and minor skin conditions.
- 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.
- Diagnostic and laboratory services. DPC physicians may coordinate or offer a wide range of diagnostic and laboratory services, including blood tests, urine analyses, imaging studies, (such as X-rays, ultrasounds), electrocardiograms, etc.
- Management of medication. DPC doctors are able to prescribe medication, track their effectiveness and adjust as necessary. The doctors also offer education on the proper use of medications.
- Mental Health Services As part of comprehensive health care, many DPCs offer mental health services. DPC physicians may offer counseling, therapy and refer patients to specialists in mental health when needed.
- Minor procedures. Minor procedures.
- Referrals and coordination of care. DPC physicians act as advocates for patients and coordinate with other health care providers, specialists, and hospitals when necessary.
Meanwhile, since there’s no insurance company involved, there are no co-pays, co-insurance, or deductibles to worry about. The monthly subscription covers everything. This means cash-strapped workers can seek the care they need right away. They never need to put off seeing the doctor because they can’t afford the deductible or co-pay.
Patients can select supplementary plans to cover additional services, such as accident insurance, high-deductible health plans or health sharing plans. DPC members can choose to cover routine health care at a lower cost by opting for health sharing plans instead of traditional insurance.
Health Savings Accounts (or HSAs)
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.
Louisiana residents and business owners need as many tax breaks as they possibly can. As compensation, Louisiana’s corporate income tax allows employers to deduct their contributions towards employees’ Health Savings Accounts.
HSAs let individuals set aside money before tax to help pay future medical bills. HSAs may be contributed to by employees as well as employers. However, the limit is set each year to adjust for inflation.
HSAs allow for tax-deferred investment growth and tax-free withdrawals.
The Eligibility for HSAs
To be eligible to receive pre-tax employer contributions into an HSA and to make contributions themselves, employees need to enroll in a qualified high-deductible health plan (HDHP).
For 2023, the IRS defines a high deductible health plan as any plan with a deductible of at least $1,500 for an individual or $3,000 for a family.
An HDHP’s total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) can’t be more than $7,500 for an individual or $15,000 for a family. (This limit doesn’t apply to out-of-network services.)
How can I combine HSAs and health sharing plans?
Only one health-sharing plan, the HSA SECURE, is currently available from 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.
To be eligible for this plan, employees must have ownership or income from a small business or self-employment.
HSA SECURE does not apply to W-2 employees. HSA SECURE is a good option for employees or spouses who have a small business or freelance job, as well as side jobs, but are otherwise healthy and do not need to be treated regularly.
The HSA SECURE plans are also an excellent way for small business owners to save on expenses.
HSA SECURE would require your employees to register on their behalf. After they’ve established their HSAs, also you are able to make pretax contributions in their name, subject to the limits set by Congress each year.
Click here to learn more about HSA SECURE.
What is the Taxation of Small Business Health Insurance Louisiana Benefits
After all you’ve just learned about all the other options that are available for small business owners in addition to health insurance as it is known today, we have a short table to explain how they will be taxed.
| 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 |
Taking Care of All the Levels in the Pyramid
As shown in the below diagram, a good plan 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.
On the left of this diagram, we list common traditional insurance-based solutions that address each level of the Care Pyramid.
While on its right, we list a number of alternatives, more affordable approaches to providing meaningful protection for employees at each respective level of the Pyramid.
A good plan design provides employees with affordable solutions at each of these levels. So that no employee needs to delay or go without care because they can’t afford a premium, coinsurance, or copay…
Your Personal Benefits Manager can help you create a custom plan design for your work force that provides a solution at each level of the Care Pyramid – often at a fraction of the cost of a traditional group plan to the employer.
Small Business Health Insurance Louisiana Tax Credit
Small Business Health Care Tax Credit, passed with the ACA allows certain small businesses to claim a federal credit up to 50% on their employees’ health insurance costs.
This program is designed for small business owners who have 25 or less employees and tend to hire workers at lower wages.
In general, the credit can be claimed by for-profit and non-profit businesses that:
* Have fewer than 25 employees and average salaries of around $53,000 or less (excluding the salaries of all owners). In general, owners are not included when figuring out the number of employees and average salaries for the business. Also, the number of employees is based on “full-time equivalents” (FTEs). That means two half-time employees would equal one full-time employee.
* Pay at least half of the cost of premiums for employees; and
* Offer Affordable Care Act-qualified coverage available on the state exchange (in Louisiana’s case, on healthcare.gov, the federal online insurance marketplace website.
The tax credit is eliminated once an employer has 25 employees or the average wage is about $53,000 or higher.
What is the process for claiming credit?
This tax credit can be claimed on your income tax returns with IRS Form 8941 attached (tax-exempt businesses are required to submit a Form990-T to make a claim even though they do not have to).
Contributions to health insurance for your employees do not attract tax.
What if I do not owe any tax this year? Can I still claim the tax credit?
Yes. You can carry back the tax credit to use it to offset the income tax liability you owed the year before or forward to offset the tax you owe over the next twenty years.
You can get a refund if you have a tax-exempt company.
Contact your tax advisor to learn more about the Small Business Health Care Tax Credit.
Combining Small Business Health Insurance Louisiana Strategies
Combining various programs can be a smart move when it comes to maximizing your health insurance coverage.
Many employers frequently find that combining several healthcare packages makes it possible for them to control healthcare costs while also providing complete coverage to their employees.
Consider that 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.
Compared to conventional group health insurance, this strategy can be more affordable for your company, for your employees, or both.
Offering employees the choice between signing up for a health sharing plan or purchasing an individual health insurance plan, as well as giving them the chance to fund a Health Savings Account (HSA) for those who choose an HSA-qualified HDHP plan, can give them more flexibility and possibly lower costs.
What Should Now Be Done?
The best course of action is to put together an employee census and contact us for a free, complementary business health plan analysis and recommendation.
You’ll be connected with an experienced HSA for America Persona Benefits Manager who will go over your work force and families with you, your budget and needs, your employees’ ability to contribute, and any preexisting conditions you may be aware of who need to be considered when designing a new plan.
Many of PBMs were successful business owners or entrepreneurs themselves. These PBMs are business owners themselves and have a deep understanding of your requirements as an entrepreneur.
What are the waiting periods on pre-existing condition plans?
Yes, both options can be offered side-by side. This allows employees to pick the plan that best fits their needs.
You may fall short of the required minimum rate of participation if you have too few employees participating in a health plan. HRAs can be used to reimburse employees for their individual health coverage, which is close to that cost.
Small Business Health Insurance Louisiana—Frequently asked questions
What is the difference between health insurance and health sharing for small businesses?
Health insurance is a traditional coverage plan offered by insurance companies, while health sharing involves members contributing to a pool of funds to cover each other’s medical expenses.
Health Savings Accounts—How do they help Louisiana’s employees manage medical expenses?
HSAs provide individuals with the opportunity to invest pre-tax dollars to help pay for future healthcare expenses. The contributions of both employees and employers could provide tax incentives and possible savings for healthcare expenses.
Louisiana allows employers to deduct contributions made by their employees towards HSAs when calculating state income tax?
Yes. Louisiana’s state income tax allows for the full deduction of employer contributions toward employee HSAs.
If a company does not owe Louisiana taxes, can they still claim the Small Business Health Care Tax Credit?
Yes, even if the business does not owe any taxes for a given year, it can still carry back the Small Business Health Care Tax Credit to offset the income tax liability of the previous year.
Do health plans that offer health-sharing cover maternity benefits in Louisiana?
Louisiana health plans and insurance policies often include maternity benefits, which cover prenatal, postnatal, and labor care. Some health sharing plans restrict the cost-sharing benefit for children born outside marriage.
What is an HRA (Health Reimbursement Arrangement) and how does it work?
An HRA is an employer-funded account that reimburses employees for qualified medical expenses not covered by their insurance plan. Employers determine what expenses are eligible and contribute funds accordingly.
HRAs can be combined with other options for coverage, such as health sharing plans and individual health insurance policies.
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.
What are the waiting periods on pre-existing condition plans?
There may be a waiting period for certain health sharing plans before the coverage is provided. You should review plan guidelines or speak to a Personal Benefits manager for additional information.
Employers in Louisiana can contribute to employee HSAs.
Yes, employers are allowed to make contributions to their employees’ HSAs, although subject to the annual limits set by Congress.
What are the benefits of offering Direct Primary Care Plans (DPCs) alongside other plans for Louisiana’s small business?
Combining DPC coverage with other low-cost plans, such as Health Sharing Plans, can offer comprehensive and cost-effective healthcare solutions to small businesses.
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, whereas tax-exempt businesses need to file Form 990T.
HSA for America is not a tax advisor. For more information, employers should contact their tax advisor.
Do these small businesses have to be a certain size in order to qualify?
The Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) is only available to employers who have fewer than 50 employees. However, if you have more than 50 employees, or your company grows to have more than 50, there are other types of HRAs available to you.
You will also have an ACA requirement to provide a qualified health insurance plan for your employees, or pay a penalty. If you are on the cusp or planning to hire your 50th full-time worker or equivalent in the near future, speak with your Personal Benefits Manager, as that could affect your plan design.
How can I decide which option of health insurance with cost-sharing is right for my Louisiana business?
Why would we go at it alone? Contact a Personal Benefits Manager, who can conduct a free analysis and recommendation based on your specific needs, budget, employee census, and any pre-existing conditions that need to be considered. You can work with them to design a program that will maximize value for employees and control costs, all while helping you maintain your competitive edge.
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