Regarding offer health care to employees, many small nonprofits feel like they do not have affordable options. Although nonprofit want to take care of their employees, many organizations are unable to afford traditional insurance group health or do not meet the minimum requirements for participation. In fact, a recent report by the Department of Health and Human Services found that 47 percent of non-profit organizations with fewer than 50 employees offer employees a health insurance coverage today.
Sound familiar? If so, here is a new perspective - there is a more affordable way to provide health care for employees. Instead of providing a traditional group health insurance, many nonprofit organizations establish a formal benefits plan to reimburse employees for their individual premiums Medicare. This article takes a look at how and why this approach can produce cost savings while better meeting the expectations of employee benefits.
Savings Understanding
To understand why a repayment approach can work so well, consider this - on average, individual policies health insurance are less of an insurance policy healthy small group. Here is a look at national data
For single coverage, an individual policy costs $ 3,587 per year on average -. A 43 percent savings relative to the coverage group average $ 6,251 per year. Factor in the tax subsidies available for individual coverage and savings increase to 60 percent per year
For family coverage, an individual policy costs $ 10,739 per year on average -. A 39 percent savings compared to the average group coverage to $ 17.545 per year. If eligible for tax subsidies, savings for the average single family coverage 68 percent.
The beauty of individual health insurance financed by the employer is the amount of the non-profit's contribution is fully defined and controlled by the organization. There are no minimum requirements and no annual renewal fee.
exact cost savings will vary by location and employee demographics. An example of savings from typical costs (based on 2014 Medicare costs for the state of Illinois). In this example, a 45-person nonprofit saved $ 275,058 per year (61 percent) with individual health insurance funded by the employer
Source - . Zane Benefits
Taking care of loyal employees
In addition to cost, many nonprofits value offering health care benefits to care for their employees, who work hard faithful. How individual health insurance funded by the employer to provide employees access to quality health care?
With this type of health benefits, employees can choose an individual or family plan tailored to their own needs, including the level of coverage, the carrier and network provider.
for example, if a young employee is relatively healthy and on a tight budget, a plan with a lower deductible and higher premium may be the right choice. On the other hand, if an older employee has medical needs in progress, a plan with a higher premium and lower deductible may be the best plan.
In addition, if employees meet certain income limits, they can access the federal health insurance subsidies lowering their premium cost even further.
Minimal
administrationusing online software, health benefits are easy and inexpensive for the nonprofit to administer. Some nonprofits consider reimbursement for employees without a formal or compatible software side, however, remains in compliance with federal regulations and healthcare reform can be costly, time, and administrative hassles.
A credible software tool eliminates the time and hassle administrative costs to provide health benefits. nonprofit organizations that choose a premium payment software provider can expect:
- Spend less than five minutes per month the administration of their repayment plan
- You 24/7 access to their online repayment plan
- Embed repayments with their payroll system processes and existing human resources
- Have integrated compliance guarantees
Related - what Works premium refund for charities
Software redemption premium ensures compliance
the IRS allows this type of individual insurance reimbursement franchise 's disease tax documents if the legal regime in place, and is administered in accordance with federal guidelines and regulations. Using a premium reimbursement software, the nonprofit organization ensures compliance with:
- ACA required, including "market reforms"
- ERISA
- IRS
- COBRA
- HIPAA
Conclusion
nonprofits across the country adopt individual health insurance funded by the employer to offer more affordable health benefits. With this approach, non-profit organizations can control costs, provide quality services, spend less time to administer the benefits, and stay in compliance
Editor's Note :. This post has been updated with the latest information on health insurance. The article was published in October 2014.
What questions do you have about affordable healthcare for non-profit organizations? Leave a comment or question below.
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