For small business owners, the the future is always uncertain. Between economic volatility, changes in industry trends, and changes in customer prefe 
ence, very few things remain constant. Unfortunately, the only thing that small business owners have been able to count on in recent years is the increased cost of their health plans. Like clockwork, group health plan providers increase their rates at renewal. In fact, according to the Health Survey of Small Business 2014, "a massive 91 percent reported an increase in their health plan to their most recent renewal while 96 percent said health insurance costs increased over the past five years. the majority expect to continue to see cost increases in the coming year. "
This frustrating dynamics have many employers who adopt health care reimbursement plans as an adjustment means of rising health insurance rates. the use of a repayment plan, a company can send its employees on the individual health insurance market to buy their own health plans. As a benefit for employees, the company can then pay health premiums to a predetermined level. These monthly payments, sometimes called real contributions in dollars, can completely replace the need for health plans of traditional society. repayment plans that companies have adopted enjoy the following benefits:
health plansSavings and control
Healthcare costs in the US are rising and group are no exception. These rising costs represent a significant expense for small businesses that offer group plans. Gnaws a company's profits, these costs directly affect the employer and the employees' income. By defining contributions to employee health care, repayment plans can significantly reduce the amount of money spent on health benefits. Perhaps more importantly, however, these plans eliminate Blindside rate increases, creating a predictable cost structure for small businesses. Because the real dollar contributions are predetermined, the budget will never change unless the employer decides to offer a higher benefit.
Tax benefits
savings and stability costs are not only financial benefits related to health reimbursement plans insurance health care. Dieting in real dollar contributions also provide tax benefits to employers and employees. Because these defined contributions are not a form of wage or salary compensation, they are not subject to income tax. This allows employers to reward their employees with valuable benefits without increasing their tax exposure. Employers also benefit from the ability to transmit additional compensation without having to pay the extra tax on wages. Based on income and other factors, some employees may receive additional tax benefits in the form of credits or reductions in federal taxes on individual health insurance plans they pick on the exchange.
Independence of staff and choice
frustrations with the company health care plans go beyond the obvious financial factors. Group plans are not effective because they force a lot of people to accept the same policies and benefits. Regarding health care, however, all employees have their own unique needs and preferences. According to health care reimbursement plans, employees do their own research process and selection and purchase plans that best meet their needs. This gives them a voice regarding the level of premiums, coinsurance amounts and other financial factors. It allows them to also consider the risk preferences, care network, and the quality of the plan before making their own selection policy. In the fast paced world of small business, business owners can count on very few things remain constant. Unfortunately, they could count on rising health costs, which result in rate hikes on their group plans. Blindside These increases have a lot of small business owners canceling their collective schemes for reimbursement premium packages. Allowing them to establish a defined contribution in real dollars, these repayment plans have the option of replacing the constant uncertainty with an affordable structure, stable and constant costs.
What do you think? What questions do you have about Blindside rate increases? Leave a comment or question below.
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