Affordable Group Health Plan Options for Small Businesses
⚪For health plan purposes, generally employers with fewer than 50 full- time equivalents
⚪Exempt from the ACA mandate to provide health insurance benefits to employees
Who is a "Small Employer"?
Affordable Health Plan Options for Employers
Major Medical Options
Average cost: $600-800 for individuals, $900-1,400 for families per month
Cost up to twice as much as health-sharing
Average cost: $250-400 for individuals, $600-700 for families per month
Cost 30 to 50 percent less than traditional health insurance per covered individual
These Plans Provide Protection for Major Health Care Needs
Traditional Group Health Insurance
Healthsharing
Major Medical Options
Run by for-profit corporations
Immediate coverage of pre-existing conditions
Run by not-for-profit health sharing ministry organiza-tions
Waiting period before pre-existing costs are covered
These Plans Provide Protection for Major Health Care Needs
Traditional Group Health Insurance
Healthsharing
Healthsharing Vs. Traditional Group Health
Must provide 10 "minimum essential coverages"
HMOs and PPOs impose limited care networks
More freedom to exclude care that members don't want or need
No limited care networks - Members can see any doctor
Traditional Group Health Insurance
Healthsharing Plans
Healthsharing Vs. Traditional Group Health
No waiting periods for pre-exisiting conditions, surgeries, or cancer treatment.
Enrollment only allowed during limited enrollment periods.
No open enrollment periods: Members can add or drop health-sharing at any time.
Traditional Group Health Insurance
Healthsharing Plans
Waiting period for surgeries, cancer, and other pre-existing conditions may apply.
What is Healthsharing?
⚪Healthsharing is not health insurance. Instead, it's a more affordable alternative to traditional health insurance.
⚪Healthsharing is not regulated by state insurance commissioners. ⚪Healthsharing plans are available at a fraction of the cost of traditional health insurance.
⚪Employer group healthsharing plans can be portable: Employees can take their healthsharing membership with them when they leave service
⚪No complicated COBRA rules
Employers Should Consider Healthsharing if
⚫Controlling company health care costs is a factor
⚫Employees are mostly in good health with few pre-existing conditions
⚫Employees want to save money
⚫Employees want the freedom to choose their own doctors and healthcare providers
Health Reimbursement Arrangements (HRAs)
⚫Allow employees to save and pay for needed healthcare with tax-free dollars
⚫Can be funded by employers or workers
⚫Employees must enroll in a high deductible health plan (HDHP) to be eligible for HSA contributions
⚫HDHPs save substantial amounts in premiums
⚫Employer contributions are tax deductible
⚫Employer contributions are not subject to payroll tax saving employers more money.
⚫Employers can add an HDHP at little or no additional cost.
Health Reimbursement Arrangements (HRAs)
HSAs - Health Savings Accounts
⚫Employees take on more responsiblity for their own health care.
⚫More skin in the game = less reckless expenditure, = lower overall utilization costs
⚫More freedom to choose their own doctors: Employees can use HSA money in or out of plan networks.
Frequently Asked Questions About Health Savings Accounts
Health Reimbursement Arrangements (HRAs)
⚫Small employers (>50 FTEs) who don't offer a health plan of their own may establish a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)
⚫Special arrangements that allow employers to provide tax-free dollars to help employees pay medical expenses.
Health Reimbursement Arrangements (HRAs)
⚫Lower-income employees may still qualify for ACA subsidies (offset by HRA assistance they receive
⚫QSEHRAs enable employers to drop expensive group health plans altogether. Instead, employers provide tax-free money to enable workers to buy their own coverage on the open market
Everything You Need to Know About HRAs for Small Businesses
Health Reimbursement Arrangements (HRAs)
Health Reimbursement Arrangements (HRAs)
Employees can use QSEHRA benefits for:
⚪Health insurance premiums
⚪Healthsharing memberships
⚪Deductibles
⚪Copays
⚪Medical devices and other costs excluded under their health plans
IRS Publication 502 lists hundreds of eligible expenses.
Covering Employees With pre-existing Conditions
Many QSEHRA beneficiaries with no pre-existing conditions will choose healthsharing plans due to cost savings.
Many QSEHRA beneficiaries with no pre-existing conditions will choose healthsharing plans due to cost savings.
Schedule a free, no-obligation consultation on plan design
Health Savings Accounts (HSAs)
◙ HRA assets are owned and controlled by employers (until they are paid out)
◙ Completely customizable: Employers have great leeway to design their own plans.
◙ If a QSEHRA is offered to anyone, it must be offered to all full-time employees or none at all.
◙ Employers can choose whether to extend QSEHRA benefits to part-time employees and families. ◙ Assets remain on the employers' books as general capital until paid out.
Start saving money on employee health care today
Consultations are free. Click here to make an appointment with an expert Personal Benefits Manager today.
HSA for America is among the only health insurance brokerages that can talk to small employers about all your health coverage options, including health sharing and DPC plans.
Health Insurance Plans for Small Business with 2 to 10 Employees - 2023 Guide