Health care costs aren’t just affecting individual people–businesses are struggling to cover their employees. Trying to find affordable health insurance for your small business can seem like an impossible mission. Not only are the costs unmanageable, but sometimes the employee benefits that are supposed to work for “all” don’t really do that.
Thankfully, there are health insurance alternatives for small business groups like yours. In order to help you make the right decision for your small business, we’ve decided to lay out your different options. You’ll find the benefits and drawbacks of each so you can choose the one that best fulfills your needs.
1. Standard Group Health Insurance
Do you have less than 50 employees? If so, a traditional policy from the SHOP Marketplace may be a good option for you. These policies are offered by federal and state-run exchanges and come with tax credits. However, you must meet the eligibility requirements, so you’ll want to contact us Sackett & Associates Insurance Services to ensure this is the way to go for your company.
2. The Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)
Thanks to a bipartisan bill that was passed in December 2016, the QSEHRA is now an option for companies with fewer than 50 workers. Here’s how this program works:
- Your business offers a tax-free monthly allowance to your employees
- Your employees select and pay for their health care, including personal insurance, copays, premiums, and prescription medications
- Your business reimburses your employees up to the allowance you provided them
You set the allowance and your workers make their own purchases. If personalization and freedom are priorities, then consider going with QSEHRA.
Entering a co-op is one method that many business owners have seen to be tried-and-true. Joining a co-op spreads risk to a bigger group and increases buying power. However, not every co-op is created equal. Before you join one, make sure you determine whether it offers a better rate than something you can get elsewhere.
4. Private Health Exchange
In a private exchange, your small group provides employees with a contribution they can use for plan options. These plans may be group- or individual-based. Brokers may offer this type of option by partnering with a private exchange provider or defined contribution.
5. Private Small Group Plan
You always have the option to buy a private plan. If you want more carriers and options than what’s provided by the SHOP Marketplace, then this may be something to consider.
If you need help finding affordable health insurance that makes sense for your business, call us at 707-823-3689 for a quote.