If you are a small or growing of business seeking health insurance for your employees, you may be well aware of the challenges more than 2.7 million small businesses in the face of the United States -. traditional health insurance does not always work for small businesses
But, here's a silver lining - there are alternatives to employer health insurance, which allow small businesses achieve their recruitment and retention objectives without cost requirements or administration of a health insurance plan sponsored by the employer.
In this article, we describe five alternatives to employer health insurance.
5 alternatives to employer health insurance
5 alternatives to employer health insurance When the traditional health insurance the employer does not make sense because of the cost, conditions participation, or administrative resources, there are five main alternatives to employer health insurance:
- individual health insurance reimbursement ( "premium Redemption")
- increase wages for assist employees with health insurance
- health insurance coverage Nontraditional Group (eg Store or Co-Op)
- Wellness initiatives
- Advantages Boost employee and Perks
a summary of each of these alternatives.
1. Health Individual Insurance Refund ( "Premium Redemption")
The first small companies adopt alternative is the individual insurance reimbursement disease, sometimes called a premium refund scheme. It works exactly as it sounds.
The employer sets up a formal repayment plan tax benefits. Employees purchase individual coverage and are reimbursed by the health plan reimbursement for the costs of qualified premiums.
This alternative is effective because it feels like a traditional health benefit program and has the same tax benefits as traditional health insurance.
However, unlike traditional health benefits, employees are in the driver's seat with the selection of their own insurance -. a benefit for employees who want more control over their health care dollars
using a formal, favorable tax repayment plan requires official plan documents and must comply with certain administrative rules but using a rebate program for health care facilitates the administration and compliant.
2. Increase salaries to help employees with health insurance
A second solution is to increase employee salaries so they are able to buy their own health insurance. In other words, give everyone a salary boost or an annual bonus to help cover the cost of health insurance.
Providing this type of taxable allowance is easy to offer, but because it is a more informal arrangement you problems. For example, employees will actually spend money on health insurance? Is your business losing the best job candidates desired employers with formal health services in place? These are important issues to consider with this approach.
That being said, there are several companies that come up in the market offering products to help companies set up this type of tax treatment for health insurance and to minimize these concerns.
3. Cover Nontraditional Health Insurance Group (eg Store or Co-Op)
A third alternative is a spin on the traditional medicare employers - what I call non-traditional group health insurance options as a market SHOP plan or co-op health insurance.
These types of plans provide new ways for small businesses to offer health insurance coverage and they can give small businesses increased purchasing power. In addition, SHOP plans give small employers access to tax credits for health care for small businesses.
4. Initiatives Wellness
The fourth alternative is to invest in wellness initiatives. Small businesses should not invest considerable time and resources to create a wellness program; there are many ideas of well-being cheap there.
initiatives wellness much does feel like the official health benefits to employees, but they can be effective in building a healthy and productive workforce.
5. Boost More Benefits and Perks
As for wellness initiatives, the last alternative is to stimulate other advantages and benefits.
To make this effective, find out what the advantages and benefits of your key employees appreciate and direct your resources there. Yes, this alternative means that you do not offer a formal set of health benefits, but you offering other advantages and benefits to create a desirable workforce and healthy.
Conclusion
When it comes to employee compensation, small businesses want to provide a set of competitive health benefits to recruit and retain the best employees. However, the employer health insurance coverage are not always in the cards. For an alternative, small businesses assess individual health insurance and reimbursement premiums, health insurance benefits, non-traditional group health insurance plans, wellness initiatives, and other social advantages.
What other alternatives to health insurance for employers to see you in the market? What questions about these alternatives do you have? Join the discussion with a comment or question.
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