Editor's Note: This article was updated with the latest information and health insurance information. The article was published on December 13, 2013.
It's that time of year when small businesses are seeking health benefits for the new year and evaluating options . During this renewal season, small businesses are in an interesting position. Small businesses with fewer than 50 employees not mandated by the Affordable Care Act (ACA) to offer traditional health insurance. And, because of the ACA there are new, more affordable health plan options for small businesses - including small businesses that have been priced out of traditional group health insurance. These two factors create new alternatives and opportunities for small businesses to offer health benefits.
There are three main alternatives Health Insurance small businesses evaluate the market today.
Top 3 Small business health insurance 'Alternatives'
# 1) Plan Small Group Health Insurance (non-Alternative)
on the first our list is not replacing - a health insurance plan in small groups.
A small group health insurance plan is the traditional way for small businesses to offer health insurance, so why include it on our list? Because there are new group health insurance plan options for small employers.
One of the "new" option is the SHOP market. The SHOP markets are the public health insurance exchanges for small businesses. While the choices are quite limited and they have not been widely adopted, the SHOP markets could be good coverage option for small businesses - especially if they qualify for free tax health care company credits
However, as traditional plans small group health insurance there are certain requirements which makes them prohibitive for many small businesses. For example, in Massachusetts employers participating in SHOP must contribute at least 50% of the premium amount, employers with 1-5 employees must have 100% of registered employees and employers with 6-50 employees must have at least 75 % enrolled.
To explore group health insurance plan options and buy a policy, small businesses can work with a health insurance broker licensed and / or to explore options online.
# 2) Health Reimbursement individual
insuranceThe second option is a small insurance variant disease popular business, and is a simple approach to provide benefits for employee health - reimburse the premiums instead of paying them.
individual reimbursement of health insurance is a viable option for small businesses because it eliminates many barriers to offer traditional health insurance, such as high costs, participation minimum, and the minimum requirements of assessment.
Here's how this option works
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The employer sets up a formal repayment plan (eg a section 105 refund scheme health care) to give employees a monthly allowance of health care.
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Employees select an individual plan of an occupational disease insurance, an insurance company, or online through a private exchange or public. Eligible employees can access discounts on their premiums by tax credits of premium.
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Employees are reimbursed by their premium refund scheme until their balance amount.
For many small businesses, individuals repayment of health insurance is the most cost effective solution because the small business can contribute any amount, and individual costs of health insurance, on average, fewer plans in small groups.
To implement this type of health benefits, the company usually works with an occupational disease insurance and / or health reimbursement software provider.
See this overview of the individual reimbursement of health insurance.
# 3) offer nothing
The latest variant small insurance company disease is nothing to offer employees. In other words, do not offer an official health benefit
Some small companies take this approach because :. # 1) they can not afford a health insurance plan in small groups, and # 2) they do not know that Medicare reimbursement person exists on a formal basis, tax-efficient.
other companies do not want to contribute to employee health insurance costs or are not tipping point in their business where the benefits of sense.
Small Business Health Insurance Other Alternatives
Of course, in these three fundamental options there are variations. However, in the vast sea of options available for small business owners, most choices are in three basic options.
For example, "sending employees to different health insurance exchanges" is an option for small business talking. This could mean a couple of different options. If the small business wants contribute formally to employee expenses, then they could set up a formal repayment plan (option # 2) If they do not want help, that would be the # 3 option -.. Give nothing
Similarly, a private health insurance exchange would be a variant of the group plan (option # 1) of / or individual health insurance reimbursement (option 2). and, a cooperative is a variant of a small group level (1).
What little alternative health insurance business (or options) see you in market? what is missing from this list? Leave a comment below.
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