Last week on Columbia Tribune reported University of Missouri (MU) graduate students lose their employer contribution to contribute to premium costs. The reason? MU, SOA practice to contribute to the health insurance scheme for students university, AOS Aetna (a market Äúindividual plan Au) was non-compliant Shot employer payment .
Laying down the barrel of an annual fee of $ 36,000 per graduate student, MU canceled their health insurance contribution and chose to provide graduate students of a grant award cycles single time.
difficult decisions
MU, AOS story reflects how employers around the country are having to take difficult decisions on how to deal with the new rules and affordable care Act, OSA reforms.
in many ways, the restriction Bill Payment bands employers affordable ways to help employees with health care costs. For example, by providing a contribution to individual health plans was probably much more affordable for MU, and employees that provide a traditional group-based coverage.
But that is not always mentioned in these stories is that is an alternative to payment of employer plan that allows employers to help with health insurance costs and avoid costly fees .
Here, AOS that MU and any employer can do to provide employees with a contribution to their individual health plans.
Alternative plans employer payment
As an alternative to employer payment plan, MU could set up a medical expense reimbursement plan self-assured (sometimes called health repayment plan or section 105 Plan ) to give graduate students an allowance for health insurance.
Unlike an employer payment plan, a repayment plan for self-insured medical expenses can be designed to follow the new health reform rules. How? The plan is structured to not reimburse employees for health insurance premiums and covers basic preventive care as required by the reforms.
Here, AOS how self-insurance medical reimbursement plan works:
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The employer shall establish a plan reimbursement. In doing so, the employer sets the amount of monthly contributions and eligibility criteria.
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The employees can keep their current coverage, or select any plan for individual health.
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employees submit a request for reimbursement to their health plan administrator (eg health care reimbursement software ).
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The employer reimburses employees for approved expenditures in the amount of the health balance.
Of course, a second alternative to employer Plan payment is to do what MU did -. offer employees an allowance (bonus or increase) for use on health insurance, but this must be considered taxable income
Conclusion
as I read that MU was canceling its contribution to graduates of individual health plans student, AOS, two things come to mind: 1) the employer's contributions to individual health plans are much more common than most people think. It is a health care strategy adopted by large and small employers, as well. 2) Although the declaration emphasizes the difficulties for employees and severity of charges (rightly), another great way to take is that there alternatives to employer payment schemes which allow employers to help individual health plans and avoid penalties.
What are your takeaway? What questions do you have about the employer Payment plans or how to help employees with single coverage in the health plan? Leave a comment below.
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