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

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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

Alternatives to Employer Health Insurance

Further Reading

 Further Reading