August 6, 2014
As companies across the US begin the process of preparing for open enrollment, many business owners and HR departments are still unsure of what will happen come November. In the spirit of helping those charged with the task of choosing or renewing a group health plan, we thought that this would be a good time to look at three of the most popular group options under the new Healthcare Reform laws.
Level Funded Self-Insured Plans
Popular among healthy groups ranging between 10 and 150 employees, Self-Funded plans offer businesses a way to avoid healthcare reform community ratings and compliance challenges, by evaluating premiums based on the age and health of the overall group. Unlike traditional group plans, Level-Funded plans function as a cooperative formed by the joining of smaller groups within a specific industry, as well as those united under a collective, association or union.
- Premiums are determined by the group's health & demographics
- Not bound by certain aspects of the Affordable Care Act
- Coverage can be uniquely tailored to the group's needs
- The traditional $6,000 max-out-of-pocket is not mandatory
Under the Affordable Care Act, if you offer your employees a group health plan, you are automatically making them ineligible for a government subsidy. With individualized groups, each employee purchases their own policy, with the expenses being offset by a company contribution of your choosing. By electing to not offer a traditional group plan, you have the option of giving each employee a specified amount to help reduce their premiums, thus freeing you of many tasks associated with managing group health benefits.
- Employees choose and purchase their own individual plans
- Allows employers to contribute a fixed amount to offset their premiums
- Less time required on behalf of business owners and HR staff
- Allows lower income employees the chance to apply for subsidies
HRA (Health Reimbursement Accounts)
It's well-documented that 20% of an organization's employees traditionally account for 80% of the healthcare claims and expenses. This alone has made HRA's an extremely popular option among more and more businesses. With an HRA, the goal is to provide your employees with extensive health and medical benefits, while keeping premiums affordable. Ultimately, you only end up paying for the amount of coverage actually being used, while ensuring that your staff is reimbursed quickly for their healthcare expenses. Any unused funds are then returned to the company at the end of each year.
- High-deductible plans proven to lower premiums and out-of-pocket expenses
- Pay-per-claim, so the company only pays for claims when they occur
- Unused funds are returned and can be reinvested in the business
- Staff health claims are reimbursed faster than with traditional plans
Open Enrollment for Chicago area Businesses
If you've been dreading the coming open enrollment and would like to speak with an agent about options on how to save money while still offering exemplary health benefits to your staff, Premier can help. Our office is located in the Naperville/Lisle area, and we staff a team of licensed IL health insurance agents who are well-versed on the Affordable Care Act for business.
Call Premier today at 800-369-0287 to learn more of schedule a free benchmark assessment for your company. You can also write to us directly through our website's contact page.