What if your small company was able to offer health benefits without worrying about cost control, year after year? Sounds too good to be true, right?
After all, a recent survey found that 0 percent of employers are preparing for the health plan increases this year, many in the double digits, and the number one operating challenge employers is the cost of benefits.
So what can business owners do to get the cost of health benefits under control?
A Life Hack to control costs Health Services
There are several different employers cost containment strategies used to control health benefit costs. For example, common strategies include:
- Cost-shifting to employees
- plans or health carriers Modification
- Restrict network provider or pharmacy
- Change funding structure
as the cost of health care continues to grow, however, employers (particularly small employers) consider new approaches to cost containment. Which brings us to our life hack to control health benefits :. individual health insurance funded by the employer
individual health insurance financed by the employer is a life hack your company can use now to
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start offering health benefits for the first time, or
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Save on the cost of health benefits and control costs on an annual basis.
With individual health insurance financed by the employer, you can give employees a monthly health insurance allowance to spend on their own health insurance policy . In the market for individuals, health plans are much cheaper than group coverage. And, eligible employees can access health insurance tax credits.
Individual Health Insurance Structuring funded by the employer
individual health insurance financed by the employer is a strategy for health benefits. It is an arrangement where you pay the health insurance premiums of workers - instead of offering a traditional group health insurance policy. With this approach, your business:
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Set an amount to contribute to employee health insurance,
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gives employees health care benefits tax free using a health reimbursement software, and
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Reimburse employees on payroll premiums for approved expenses.
most companies use a limited section to use 105 repayment plan of basic medical expenses for their health benefit. Terms of section 105 is the vehicle to provide health insurance benefits. Using a map to Article 105, you stay in line with the ACA regulations, IRS, HIPAA and ERISA. In fact, a section 105 plan is one of the only consistent means a company can reimburse employees for personal health insurance premiums. To ensure compliance and easy administration, companies use a provider of healthcare reimbursement software to set up and administer the Section 105 plan.
Why Hack life Controls Health Benefits costs
Being able to define, control, and predict all the costs of health care is revolutionary for many small businesses. After all, the number one reason small businesses do not offer health insurance (but want to) is cost.
With individual health insurance funded by the employer of your financial liability is controllable. Here's how this type of health care program accomplishes cost control.
First, if you want to contribute any amount for employee health care costs you can afford employer-funded health insurance individually. In fact, your company defines how to provide employees, and there is no annual renewal or increase the amount of minimum contributions. Therefore, the company controls 100 percent of health benefit costs.
Second, all contributions are theoretical until your company reimburses employees. Employees purchase individual policies health insurance premium and submit their expenses for reimbursement. Your company will reimburse employees directly on the payroll. Pre-financing bank accounts of third parties is not necessary, and your company reimburses employees for eligible premiums, up to the amount of the balance of their health.
Finally, if an employee leaves your company, the amount of unused allocations remain with your company.
Conclusion
cost health benefits of control is a major challenge for large and small employers, as well. individual health insurance funded by the employer offers small businesses an effective life hack to get health benefits costs under control. - Once and for all
What are your tips for using individual health insurance funded by the employer to control costs? Leave a comment below.
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