Group health Insurance is in crisis for small groups

Group health insurance is in a CRISIS

Group health cost are unsustainable

  • 2.3 million small business do not even offer group plans
  • Groups under 50 employee do NOT have to offer group health under PPACA
  • Cost keep going up
  • Employee share keeps going up
  • Employers must pay for at least half of employee only rate
  • Some employee do not see value and do not participate even with employer subsidy
  • If too many employees say no then participation is too low to form a group

Solution

  • Individual health insurance offers more choice and more value
  • Individual health cost less to the employer
  • Individual health insurance is guaranteed issue
  • Individual health insurance allows employees to choose carrier & type of insurance
  • Individual health is eligible for new IRS Subsidies

One Example

Single

  • Cost of individual $2,424 / year
  • Cost of Employer Plan $6,492 / year
  • Savings Per Employee $4,068 / year
  • Percentage Savings 63%

Family

  • Cost of individual $7,248 / year
  • Cost of Employer Plan $18,312 / year
  • Savings Per Employee $11,064 / year
  • Percentage Savings 60%

This does not even take into consideration SUBSIDIES. Savings could go up to 95% with subsidies.

Employer Funded Individual Health Insurance is the Common Sense Solution

Tax-free reimbursement of individual health insurance is 100%
allowed under Internal Revenue Code (IRC Section 105)

Self Insured Medical Reimbursement Plan and all others must comply with federal rules IRS, HIPPA, ERISA, and PPACA

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10 Things you need to know about Open Enrollment (Obamacare)

  1. Open enrollment starts 11/15/2014 with earliest effective date 1/1/2015 and will end 2/15/15.
  2. You can use a broker at no extra cost by applying through insurance carriers or Healthcare Marketplace.
  3. Subsidies are available to families up to 400% of the Federal Poverty Level (family of 4 =$94,200) and reduce monthly premiums.
  4. You have to purchase health insurance through a Healthcare Marketplace to receive subsidies.
  5. HSAs plans will still be offered in the Health Insurance Exchange.
  6. If your health premiums exceed 8 % of your income you are exempt from any penalties.
  7. Indian tribe members and Christian Sharing programs are exempt from any penalties under the law
  8. There will be no underwriting or preX exclusions on health plans within exchanges.
  9. Non-group plans or “individual health plans” are now guaranteed issued.
  10. If you have access to a group health plan that includes “essential benefits” you will NOT be eligible for subsidies unless your employee only rate exceeds 9.5% of your household income.

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