When it comes to employee health insurance, whether you are seeking large group or small group coverage, what are your biggest must-haves? You want:
• The best possible healthcare options for your employees’ medical needs.
• Reasonable costs for your company.
• To comply with ever-changing healthcare regulations.
• Competitive healthcare plan options to measure against each other.
Fluctuations in healthcare laws and increasing healthcare premiums are forcing some companies to reduce the benefits they offer, while also shifting more costs to employees, or even dropping coverage completely. You know that none of these options are desirable. As such, it’s time to seek out viable alternatives to the coverage you may already have.
Whether your company operates on a self-funded, partially funded, or fully insured medical plan, The Benefits Group creates an information-rich but easy-to-understand environment of options that serves your operational needs as well as the healthcare needs of your employees.
LARGE GROUP EMPLOYEE HEALTH INSURANCE
Self-Funded Employee Health Insurance
When you are seeking an alternative to traditional healthcare plans to decrease spending without losing employee coverage, a self-funded plan is a viable option. A self-funded health plan – also known as a self-insured plan – is typically utilized by large employers. This insurance choice lets your company run your own healthcare plan rather than purchase a fully insured plan from an insurance carrier.
• Take the opportunity to be innovative about healthcare. Besides the huge benefit of saving money through a self-funded plan, your company can develop a creative healthcare plan design that is customized to employees’ needs. Elements of a self-funded design can include wellness programs and consumer-driven healthcare plans (CDHP).
• Provide employees with more control and fewer costs when it comes to healthcare. CDHPs allow employees more control over how their medical dollars are being spent. A CDHP is often available in the form of a high-deductible health plan (HDHP) which is accompanied by a lower premium. This option minimizes employee medical costs, and the employee must only pay for healthcare expenses until they meet the set deductible.
• Enjoy generous spending accounts. Tax-free or tax-deductible spending accounts are also available as an element of a CDHP to cover certain medical expenses. These accounts can include a health savings account (HSA), flexible spending account (FSA), or health reimbursement arrangement (HRA).
Bottom line: A self-funded employee healthcare plan means fewer employer costs, lower and more reasonable employee costs, and greater control over healthcare decisions.
However, keep in mind that a self-funded plan is risky. The number of claims per month can only be estimated and, some months, can cost a company far more than average or expected.
Partially Funded Employee Health Insurance
An arm of self-funded employee health insurance, also intended for large groups, a partially funded employee health insurance plan offers many of the same benefits as its parent insurance.
• Double up on benefits. A partially funded plan can include an integrated health reimbursement arrangement (HRA), which is an employer-funded medical reimbursement plan with a tax advantage. Pre-tax dollars are set aside by the employer as an employee has instructed and used to pay for healthcare expenses.
• Pass employer cost-savings on to employees. Used in combination with an HDHP, the partially funded plan also boasts reduced premiums for employers. Instead, those savings can be used to fund employee HRAs, which, most likely, will be put to far better use.
Bottom line: A partially funded employee healthcare plan passes the employer’s savings on to the employees via pre-tax dollars deposited into health reimbursement plans.
SMALL GROUP EMPLOYEE HEALTH INSURANCE
Small group employee health insurance is traditionally structured as a fully insured, employer-sponsored health plan. This traditional method of providing employees with healthcare options means the bulk of the responsibility falls on the employer, who takes care of the following:
• Company-paid premium to the insurance carrier of your choice.
• Fixed premium rates (usually for one year) based on the number of enrolled employees.
• Changes to the monthly premium if there is a change to the number of enrolled employees.
The employees, though, and any family members under their coverage, are responsible for covering their own deductibles and co-payments.
Bottom line: A fully funded employee healthcare plan means you are doing your employees a huge favor. An alteration in number of enrolled employees, however, could shift the monthly premium in a negative or positive direction.
WORK WITH THE BENEFITS GROUP FOR YOUR LARGE GROUP OR SMALL GROUP EMPLOYEE HEALTH INSURANCE
Employee health insurance can be complicated. It isn’t meant to be simple on purpose. Nevertheless, at The Benefits Group it is our goal to fit you with the right insurance carrier based on your employee needs, desired benefits, and more.
Our team of group health insurance experts will analyze your business needs and provide several options for viable and cost-effective group coverage and costs. Allow us to help you find the best insurance solution for your employees.