as an organization in order not profit, the cost of employee health insurance 
can be prohibitive. Yet it is vital for nonprofits to offer health benefits to attract and retain key employees. As such, many nonprofit organizations adopt health benefits programs that reimburse employees for health insurance premiums to provide quality health benefits at a lower controllable costs.
There are many scenarios where a refund of the individual health insurance policy may be a good fit for nonprofit health benefits
In this article, we will walk through four common scenarios to help your organization understand this approach :.
- Wanting nonprofit to provide health benefits for the first time
- Nonprofit Looking canceling group health insurance
- in order not profit with employees on health insurance
- non-profit with employees in multiple states
1. Wanting nonprofit to offer health benefits to the first time
the first example scenario is a nonprofit that want to provide health benefits for the first time. This is a very common scenario. The association sought health insurance policies, but find a group policy to be too expensive, or non-profit are not eligible due to the minimum participation requirements.
For nonprofit, individual reimbursement of health insurance can be an effective solution because:
- The association may fix the amount of contribution to expenses employee health insurance (there is not the amount of the minimum or maximum contributions)
- the nonprofit reimburses employees for eligible expenditures, justified. . At the end of the plan year, unused funds remain with the organization.
- There are no renewal of annual increases. Total costs (maximum liability of the organization) is increasing every year if the organization decides to increase the amount of contributions.
- On average, individual health insurance costs less than group coverage. This means both the organization and employees generally spend less for similar coverage
Read more -. How the work of redemption premium for nonprofits
2. Non Profit seeks to cancel the group health insurance
The second example is a non-profit profit organization that currently offers a group health insurance coverage of staff, but made more cost-effective options research.
group Why do many nonprofit consider canceling health insurance? Cost is a major challenge. A recent survey of benefits found 0 percent of employers are facing health plan premium increases, with almost a quarter (23 percent) of employers see rate increases in the double digits.
As described in the first example, the individual health insurance reimbursement can be a profitable health insurance solution because: ..
- The non profit controls profit all costs
- There are no renewal unpredictable annual increases
- on average, individual insurance costs significantly less disease than the coverage of group health insurance similar -. means the nonprofit dollar goes further
3. Non-profit with employees on health insurance
The third scenario is a nonprofit with a aging workforce. This coverage of non-group insurance goal offers employees, but wants to provide a health benefit to employees enrolled in Medicare.
The solution? individual repayment offer health insurance for employees not enrolled in the organization of health insurance policy. Employees on Medicare can use their allocation for reimbursement of additional insurance premiums, including Medicare Part A, Medicare Part B and Medicare HMO
Read more -. A solution of health services for an aging workforce
4. Non-profit with employees in multiple states
The last scenario is a non-profit with employees in multiple states. In the modern business environment of today, it is becoming more common for non-profit organizations to expand across state lines or remote location, members out of state team.
Nonprofits with employees in several states often have difficulty finding a group health insurance policy to cover all team members. Individual health insurance reimbursement provides a cost effective solution because:
- The repayment plan can be offered to some or all employees based on the location, the role of employment, hours worked per week, or participation (or non-participation) in the group health insurance policy of the company.
- Different allocations of benefits may also be offered on the basis of the list of classifications used above. For example, employees in California may receive a different amount of the allowance of the employees in New York.
- Employees purchase and manage the plan of their choice, local carriers and provider networks.
Read more - An insurance solution illness for employees in multiple states
Conclusion
nonprofits in many different scenarios realize that individual reimbursement of health insurance premium helps the organization to successfully reach the budget and HR objectives. Indeed, with no reimbursement from health insurance, non-profit health benefits are possible with greater financial control, employees are able to customize their plan and coverage, and organization and employees save money
editor's Note :. This post has been updated with the latest information on health insurance. The article was published in June 2013.
What questions do you have about the non-profit health insurance options? Leave a comment or question below and we would be happy to respond.
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