October 14, 2015
Are you a business owner with less than 50 full-time equivalent W-2 employees?
The ACA has a little-known special open enrollment period from November 15 to December 15 where insurance companies must relax their rules…they cannot enforce any participation or contribution requirements. This makes it possible for smaller employers to get group health insurance, even with only one participant.
The effective date for these policies will be January 1, 2016. All employee and employer paperwork must be received by the carrier by December 15. Standard community rates apply.
In addition, there are also tax credits available based on the size of your business and average employee income.
Another option for employers who have employees in good health is called a Level-Funding Option. If you know which employees are going to enroll, providing employee health history can give you additional ways to save money on employee benefits. This is available any time of year for employers with at least 10 participating employees.
For all your premium savings options, request a quote and/or contact L & A Services ASAP for one-on-one assistance throughout the entire process. We are certified to assist with shopping and selecting a plan, securing the coverage, and applying for any tax credits you may be eligible for. Since this is a busy time of year for health insurance companies, the earlier you begin the smoother the process will be.
October 14, 2015
Obamacare is great for small businesses with less than 50 employees who have a history of large health claims. But what if the business is made up of healthy workers?
Since health history can’t be considered under the Affordable Care Act (ACA), insurance carriers must offer all employees the same premium with the only adjustments being for age, tobacco use and family size. This can often mean employers with the healthiest employees are paying the same premiums as employers with an unhealthy employee population.
For this reason, we are recommending employers who offer health insurance to at least 10 employees take a look at Level–Funding. With Level-Funding plans, a portion of the premium is set aside for the purpose of covering employee health claims, rather than paying the higher fully-insured premiums per employee. Coupled with a stop-loss policy, small companies are then protected from higher than expected losses from claims. If employee claims are less than anticipated during a plan year, a refund check is issued to the employer.
These plans are not subject to the same ACA “community rating” and other requirements, but they have many of the same benefits, and offer the same look and feel of a traditional health insurance plan. Level-funded plans give the employer more flexibility, allowing the plan design to provide an even greater benefit to the employees at a much lower cost than traditional fully-insured health plans.
These plans are not for every employer. Contact L & A Services for professional guidance and to obtain a quote.