including employee health benefits is a common human resource challenges for smaller growing companies. On the one hand, we appreciate the role of health benefits in the remuneration, recruitment and retention. Moreover, the cost is prohibitive, even for the most profitable businesses.
Throughout the United States, millions of small businesses are in this situation. Consequently, only 54% of small and medium enterprises (with fewer than 0 employees) offer traditional health insurance today.
Under the Act, Affordable Care, small businesses are not mandated to provide health insurance for employees, but most small businesses would offer advantages if they could find an affordable model. Which is why savvy small business owners open the way for a new approach benefits for health.
A Savvy Benefits Employee Health Approach
A new way of thinking about health benefits is to offer employees an allowance for Police personal health insurance, instead of offering a specific health plan. 
With this type of " pure defined contribution " model, employees are buying an individual health insurance policy. Using their allocation defined contribution, employees are reimbursed by the company. Think of it as a business expense account for health insurance.
Immediate savings are a driving force in this type of model health benefits. On average, individual health insurance costs less than traditional insurance group health . So from the start, the health care dollars are stretched further to the business and employees.
In addition, it creates a predictable pattern, fixed cost because the company, not the insurance company , the sets and controls all annual costs.
Yes, there is a major change in the way we offered employee health benefits in the past, but employees seem to be on board.
According to a recent survey by the Kaiser Family Foundation, 75% of employees working for small businesses currently do not offer health benefits would be prefer 2 $ / hour wage as health insurance . A model lines defined contribution with these values; "Here is $ 250 a month - go buy a plan of your health choices"
Related - Health Insurance Management Small Business Costs Defined Contribution
How to allow benefits to health of employees
the measures to adopt health benefits for defined contribution employees is easy. And know - if you want to contribute any amount to the employee health insurance you can afford employee health benefits. Here's how it works :.
Step 1 - Set a budget for health benefits
Step 2 - Give employees monthly health allowance to spend on health insurance; whether franchise tax by Health Repayment Plan (HRP) or a taxable allowance.
Step 3 - Allow employees to purchase health insurance through the health insurance market, broker, or online. Reimburse employees for their health care costs
Tip -. To comply with various federal rules for repayment of individual health insurance for employees, and making the easy repayment process, use a software vendor defined contribution.
Conclusion
To recruit and retain the best employees, small businesses need affordable health benefits. As such, savvy executives are the first to adopt an individual health insurance and defined contribution model. With this approach "name your price" for health benefits, companies can achieve predictable costs and employees receive great benefits to health.
What questions do you have about how to pay for employee health benefits to your small business? Leave a question. We will help you to answer.
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