Get the Facts: Group Health Insurance vs. Individual Health Plans
With the various health insurance options available today, it’s easy to see why people are confused. Basic options include group health, individual health plans and short term coverage. Get the facts about all of your options so you make an educated choice about your health insurance coverage.
What is Group Health Insurance?
Companies purchase group health insurance policies for their employees. Much like individual coverage, these plans are purchased by the employer on the open market. Some employers pay for the total cost of group health insurance, but they are only required to pay 50% for the employee only.
It is offered as an added benefit or incentive to employees. Often there will be a waiting period of 1-3 months before the coverage becomes effective. And some businesses require employees pay the total amount for their spouses and dependents in a group plan. Group health insurance can also be offered by professional groups and other organizations as long as they have enough participants to qualify for it.
Businesses will need a minimum of 2 employees to offer coverage and there will be minimum participation requirements depending on the size and scope of the group. Some companies can qualify for lower rates using medically underwritten MEWA plans. Be sure to ask about these innovative plans if you’re under 50 total employees.
What is Individual Health Insurance?
A single person (or family unit) purchases individual health insurance, as opposed to a company, organization, or professional group. It is purchased on the private market or through the federal marketplace. Despite the name, people can purchase this insurance for their families so it covers more than one individual. While one person is purchasing it, all the member of the immediate family can get coverage.
There are few companies offering plans outside of the Federal Exchange, so it’s wise to explore your options with an agent before enrolling. Depending on your income for the current year, some individuals and families will qualify for a tax credit. This can help lower your rates and in some cases your out of pocket exposure as well. In other words, your deductible and coinsurance amounts can decrease based on your projected income for the year.
How Do You Get Coverage in the Meantime?
It may take time to qualify for group health insurance, such as being employed for a certain period at the company. And purchasing individual health insurance may also take time. Plans may not start until the first of the upcoming month.
In the meantime, people can buy short-term health insurance. While the coverage is limited and only available for a brief period, it is better than having no coverage at all. Work with an insurance agent to learn more about short-term health insurance options to see if they are right for you.
In fact, some of our clients are purchasing short term health plans for an entire year now. These plans are growing in popularity because they can be much less expensive than Exchange plans and will cover most catastrophic events. They will not cover preexisting conditions, however – so they aren’t the best fit for everyone.
What Makes These Health Insurance Plans Different?
There are distinct differences between group health insurance and individual health insurance plans. Consider what makes them different:
- With group health insurance plans, nobody with pre-existing conditions can be denied. And there are no waiting periods to satisfy for any preexisting conditions. By rule, companies must pay for at least 50% of the employees’ premiums only.
- Individual health plans can cost less than group health insurance – especially for those who qualify for tax credits. You’ll need a Qualify Life Event in order to purchase a plan outside of the yearly Open Enrollment window. Preexisting conditions are also covered with on-exchange plans. You cannot get a tax credit if you’re offered coverage from your employer, however.
- All group health insurance plans and individual plans include maternity coverage. Short term policies typically will not cover this benefit. It’s wise to ask to make sure.
What About Health Discount Cards?
You’ll also see a lot of advertisements about health discount cards and policies. These programs do not provide actual insurance coverage. Rather, certain services are offered at a discounted rate. And this means people could be left with thousands of dollars in medical bills for an emergency situation.
Discount policies are never a suitable substitute for legitimate health insurance coverage. Sometimes people use them as a supplement to their regular health insurance to offset deductibles and copayments, but you need to be careful with these plans. They can cause more problems than they solve.
Benefits From Selecting Group Health Insurance
Group health insurance is a top choice for most people. There are numerous benefits for people who have this coverage. The biggest difference these days are the networks. Most individual plans will only offer smaller HMO plans, but most group policies are PPOs. If you can get it, you’ll usually benefit from the larger network associated with a PPO. And if an employer pays all or part of the cost of this insurance, it is usually the most affordable and comprehensive option.
Consult with a reputable insurance agent today to learn more about group health insurance, individual health plans, and short-term health insurance. Find out which options are right for you or your business.
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Category: Group Health Insurance, Health Insurance
How to Get Ohio Group Health Insurance When You Are Self-Employed
Self-employment offers freedom and the ability to control your workflow independently. But this means giving up benefits provided by employers, such as group health insurance and a pension plan. Or does it? Discover how to get Ohio group health insurance when you are self-employed.
What is Ohio Group Health Insurance?
A business purchases group health insurance for a large group of employees. And some employers cover the full cost, and others require employees to pay all or part of the cost of coverage. Often group health insurance costs less because the risk is spread over the group of employees. A single policy covers the group. And sometimes an option is offered to get insurance for dependents.
Are There Types of Group Health Insurance?
There are different types of Ohio group health insurance, whether purchased by an employee or other organization. Get to know the differences to make the right choice. And these options include:
- Preferred Provider Organization (PPO) do not require participants to choose a primary care doctor. And this means more freedom to choose any doctor. However, doctors outside the network may have less coverage, requiring a higher co-pay from the participant.
- Health Maintenance Organization (HMO) require enrollees to choose a primary care doctor. This doctor is the main point of contact. And referrals are required to see other specialists. Enrollees must choose doctors in the network. Providers outside the network are usually not covered. However, emergencies might be an exception.
- Exclusive Provider Organization (EPO) are a combination of PPO and HMO plans. And while the enrollee usually does not have to choose a primary care doctor, there is often no coverage outside the company’s network of medical providers.
- Point of Service (POS) and others plans, such a Health Savings Accounts, offer different levels of coverage. And sometimes out-of-pocket costs are steep. Always research these options carefully.
What are the Advantages of Having Group Health Insurance?
Employers and employees both benefit from having group health insurance. And employees have access to coverage at discounted rates. Pre-existing conditions are covered once the employee has satisfied their waiting period – up to 90 days maximum. And coverage may also be available for dependents. Employers attract talented employees by offering superior benefits in a competitive job market. And employees are often healthier and miss less work when they have coverage to see a doctor.
How Do I Get Group Health Insurance When Self-Employed?
Nearly half the workforce in the United States works remotely. And many of these people are also self-employed. And they need health insurance, too. Fortunately, employers are not the only resource for group health insurance. Many freelancers join industry-related organizations to gain access to group health insurance.
And others join groups related to age, location, or other personal situations. And examples include AARP, Writers Guild of America, and the National Association of the Self-Employed. Or supplemental plans are available through the Small Business Service Bureau and other groups. Beginning in 2019, Association type plans may be available for both self employed and groups. These plans can be purchased across state lines and will offer several new options to those who wish to avoid ACA Exchange coverage.
What About the Government Offerings?
Some self-employed people might be considered small businesses when it comes to accessing government coverage offerings. Consider no- and low-cost options such as Medicaid and CHIP programs. And the SHOP Marketplace might offer options based on the company status and income. People freelancing between jobs may qualify for COBRA insurance. And others might want short-term insurance to get basic coverages while shopping around for a more comprehensive plan. With a variety of options, there is an affordable choice available for almost everyone.
Shopping for health insurance can be confusing and frustrating to try to navigate when you are self-employed. Consult with a knowledgeable Ohio insurance agent to help you get the right policy for your budget and situation.
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Category: Group Health Insurance
Preparing for the Cost of Ohio Group Health Insurance
Group health insurance is mandated for every company that has over 50 full-time employees. This mandate helps each person working for that company be insured under current health care law. These group insurance plans, which can be purchased from different carriers in Ohio, can be fully-funded, self-funded, limited benefit or minimum essential coverage.
All of these funding options offer different types of coverage in different combinations, at varying costs to the employer. So how should you plan and prepare for the costs of Ohio group health insurance?
Group Insurance Requirements
To start, you should understand what you need to pay. Group insurance plans apply to full-time employees, which are those who work more than 30 hours per week or 120 hours per month. A group insurance plan must have a “minimum value,” meaning that it must pay at least 60% of the cost of services for the employee. But, it also has to be affordable, so employees should not spend more than 9.5% of their household income to cover the cost of insurance.
It’s essential that the group insurance plan you offer meets these criteria because failing to do so will result in a tax penalty of $2,000 per employee (for any number over 30 employees). Also, a $3,000 penalty will apply to all full-time employees who end up purchasing individual coverage. This extra fee occurs because the plan offered by the employer wasn’t of minimum value or affordable.
Beyond these requirements, you can choose if you want to offer more expansive insurance for your employees. These options can include extra products like dental, vision, life insurance, disability, Medicare and long-term care insurance plans. These can reduce costs for employees overall, but there typically needs to be a minimum number of participants for the insurance policy to apply.
Medicare Supplement Plans
You also might expect to buy a Medicare Supplement insurance policy for your employees who are over 65. This is because group Medicare rates can reduce healthcare costs overall. It’s also easy to do because you can use list billing to deduct part of the premium from your employees’ wages if you don’t want to pay the full Medicare coverage. Buying at group rates helps to lower expenditures on employee benefits for your company. But, you will have to set up an exchange for your employees to shop for coverage as most policies are still sold for individuals, not groups.
Understanding the Cost
Are you looking for ways to save costs? The first step is to shop around. You’ll want to consider the different providers that offer group health insurance packages, and compare the prices and benefits of each. These providers include Aetna, Anthem Blue Cross Blue Shield, Humana, Medical Mutual of Ohio, United Healthcare and others. Overall, it’s worth taking a look at how each package sizes up to the others.
Next, consider what kind of policies you would like to offer — whether that means HSA, HRA or traditional medical coverage. You should also decide whether you would like to include life, dental or vision coverage in the plan, or as a voluntary benefits package. Then, work on getting a quote. You should understand what the charges would be for each option and how much your company would be required to pay for that particular type of insurance.
More Ways to Reduce the Cost
There are several other ways that you can reduce costs or find the least expensive way of doing things. If all you want to do is avoid paying the penalty for not offering health insurance to your employees, then you can provide them with a Minimum Essential Coverage (MEC) plan. A MEC covers just enough to satisfy the requirements of the Affordable Care Act and typically costs less than $50 per month per employee. However, the group will have to pay the entire premium, and not just half, as in some other plans like fully-funded or major medical plans.
You can also opt for self-funded plans, which offer less extensive coverage meant for younger, healthier employees who likely won’t need the more all-encompassing coverage you can find for a higher cost. If their yearly claim is lower than expected, some groups may even get their premium returned.
What’s the Bottom Line?
It’s vital to consider which of the above policies best meets the needs of your employees. For example, if you have many older employees, the self-funded plans may not cover all of their healthcare expenses. As such, they may need extra coverage like Medicare Supplement plans.
Also, think about how much you want to pay as an employer and what would benefit you the most — whether it’s offering minimum coverage or full benefits.
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Category: Group Health Insurance
Small Group Health Insurance Plans
One goal of the Affordable Care Act was to offer small group health insurance plans (typically 20 employees or less) on the upcoming health insurance exchanges. This difficult task has proved unobtainable and has been pushed back to 2015 at the earliest.
While it appears that most of the state and federal exchanges will be up and running for 2014, small group plans will not take part in these government offerings. For small group employers, this simply means that group health insurance will need to be obtained through an agent.
Comparing Small Group Health Insurance
It is good to know that most small group brokers are able to help businesses shop coverage with several different carriers simultaneously. Quotes can typically be obtained using one set of universal applications.
Businesses can always request generic quotes without the use of underwriting, but this will not provide accurate information. If a business wants real numbers, then submitting medically underwritten apps on all employees is the prudent thing to do.
The Affordable Care Act – Obamacare
The Affordable Care Act requires all companies with 100 or more full-time employees to offer group health insurance. A full time employee is one that works 30 hours or more weekly.
Comprehensive group health insurance can be expensive for groups this size that lack the means to self-insure. In response to the ACA, some insurance companies are offering so called “skinny” or mini-medical plans.
It is unclear whether these less comprehensive insurance plans will stand up to the regulations of the ACA as the rules have not yet been finalized. If mini-med plans are deemed credible, then groups can still offer less expensive, less comprehensive coverage to their employees while avoiding the fees, fines and taxes associated with the ACA.
Talk With An Independent Insurance Agent
There is quite a bit of conflicting information regarding the rules and regulation surrounding the Affordable Care Act. If you own or operate a business of any kind, it is important to know what to expect.
By speaking with a knowledgeable group health insurance agency like ours, you can be prepared for what lies ahead. Keeping your employees off the health insurance exchanges while offering credible coverage that satisfies the ACA regulations will go a long way to saving your business time, money and frustration.
Contact Us For More Information
Hyers and Associates is a full-service, independent health insurance agency. We offer group insurance policies of all kinds as well as sponsored and voluntarily ancillary benefits.
Contact us today to learn more about your options so that your business is Obamacare compliant for 2014.
Category: Group Health Insurance
Using A Secondary Payer To Lower Group Health Insurance Premiums
Rising group health insurance rates are one of the most significant expenses facing businesses and groups of all sizes. Premiums can increase year over year by 10% or more as insurance carriers struggle with rising medical costs and new benefit requirements.
Companies and groups who wish to offer low deductible, high benefit plans are experiencing rate increases that are in many cases forcing them to switch providers, increase employee contributions, and/or enroll in less comprehensive coverage.
Secondary Payer Insurance For Group Coverage
One simply way for employers to reduce their monthly outlays for group health insurance is to implement a secondary payer plan. These plans can be combined with high(er) deductible health insurance coverage and then used to cover the larger deductible and coinsurance amounts.
In a nutshell, secondary payer insurance is coverage for out-of-pocket deductible and coinsurance costs. A company with a low deductible, benefit-rich plan can move their employees to coverage with a higher deductible in order to lower the monthly premium with their current (or new) carrier. A secondary payer plan can then be combined with their new coverage in order to offset the potential for increased out of pocket expenses.
In most cases, the out of pocket exposure to the insured will be nearly the same (if not less) but the overall premiums for the two combined coverages will be much less for the employer and/or employees. Secondary payer plans take the burden off the original carrier and shift it to the new insurance company. The new provider is only responsible for covering the higher out-of-pocket amounts.
The exposure is limited and predictable for the secondary insurance carrier and that helps them extend lower premiums to the group. Employees will be comfortable knowing their out-of-pocket expenses are not greater than they were before the change was made.
Health Savings Accounts And HRA Qualified Plans
A common practice for groups wanting to lower their monthly premiums is to switch to a high deductible HSA or HRA qualified plan. In order to account for the higher out of pocket exposure, the employer might agree to partially or totally fund the HSA or HRA.
Over a few years, this can be a significant outlay for the employer, especially with a health reimbursement account as these contributions are irretrievable when they are not used. And employees with money left in a HRA toward the end of the year will oftentimes find ways to spend these funds so as not to lose them.
Unfortunately, a secondary insurance plan cannot be implemented with most qualified health HSA, HRA, or FSA plans. However, employer groups who are not satisfied with their tax qualified plans could consider moving back to a high deductible plan (with a secondary payer) and then provide the usual benefits employees prefer – like a small copay for doctor’s office visits and immediate coverage for prescription drugs.
Filing Claims With A Secondary Payer
Filing claims is usually no more difficult than with any other traditional carrier. The insured will carry their secondary insurance card and give it to the medical provider when benefits are received. In most cases, the medical provider will then bill the secondary carrier as they would any other.
In other cases, the insured can file the claim if they wish. The will only need an explanation of benefits (EOB) and the itemized bill from the medical provider. Both can then be sent to the secondary payer administrator for reimbursement.
Networks And Underwriting Requirements
There are no network restrictions with these plans. Employees can continue to use their regular doctors and hospitals as before. In fact, the administrator will contact often used medical facilities beforehand in order to insure a smooth transition for the employer and employees.
There are no underwriting requirements needed to enroll in most secondary payer plans. If some of the employees have significant preexisting health conditions, this will not increase the rates for any of the others. Rates are based on demographics, gender and age, but not previous health issues. In many cases, renewal premiums have been lower on a percentage basis when compared to major medical coverage.
Request Quotes And Information
Hyers and Associates is full service, independent insurance agency representing several group health insurance providers. We can help your business reduce its monthly premiums by shopping for coverage with several carriers, changing plans, and/or implementing a single payer plan.
Contact us today to request more information.
Category: Group Health Insurance
Ohio Small Business Health Insurance Tax Credit
As part of the implementation of the new health care reform laws, Ohio small businesses providing group health insurance for their employees can write off a portion of their premium payments.
The Affordable Care Act allows employers who pay at least half the cost of single health insurance coverage premiums for their employees to claim the credit.
Employers must purchase group health insurance through what the I.R.S. deems a qualifying arrangement. In layman’s terms, this means that health insurance plans must be purchased from an accredited health insurer or HMO type organization.
Employee Wage and Salary Requirements
In order for a small business to qualify for the new tax credit, full time employees must meet certain income restrictions. The average wage for all full time employees must be less than $50,000 per person per year.
If the business has a higher median average than $50,000 for its full time employees, then the credit cannot be claimed in the year 2010 (or beyond) unless Congress increases the allowable amount in the future.
Allowable Number of Small Business Employees
The tax benefit will only be available to small companies with low and moderately salaried workers who employ less than 25 full time employees. Groups exceeding this limit are ineligible for the tax credit.
Eligibility for the tax credit will be based on the number of full time employees, not the overall number of employees. Small businesses with several part time hires may still be able to qualify for the deduction assuming the aforementioned salary requirements can be met.
Maximum Percentage of Health Insurance Premiums Eligible for Small Business Tax Credit
The maximum allowable credit is 35% of premiums paid by an eligible for profit small business. Non-profit and tax exempt small businesses are afforded a maximum of 25% of premiums paid by the employer.
Once an employer reaches ten full time employees, the tax credit will dissipate based on a stated formula. The credit also is reduced fractionally once the average salary reaches $25,000 or greater for each employee.
Working with H&R Block, Anthem Blue Cross Blue shield has created an online calculator that can help small companies calculate their possible deduction amount. This is helpful for those already offering health insurance to their employees as well as those who are considering coverage.
(Click here to view the calculator.)
Allowable Health Insurance Premium Deductions
Employer funded major medical insurance covering a wide variety of medical conditions counts as a qualifying expense each year. Ancillary benefits that are limited in scope such as dental and vision plans can also be claimed by the employer.
It is unclear based on the I.R.S. website as to whether group long term care, disability, and/or life insurance premiums will be eligible for the tax credit. Additionally, there is no mention of employer contributions to HSA, FSA or HRA accounts. These may be issues that will require clarification from an accountant.
Employers can learn more by reading the frequently asked questions section at the I.R.S website.
Small Business Group Health Insurance Summary
The small business health insurance tax credit will be most beneficial for groups with 10 or less full time employees averaging less than $25,000 in annual salary. The tax credit is designed as an incentive for small business employers to provide medical coverage and as a stopgap measure until new laws take effect in 2014.
Few groups may qualify for the maximum deduction, but some inevitably will. Should Congress ease the eligibility requirements in the future, more small businesses in Ohio can take advantage of this new law.
Contact Us to Compare Quotes
Hyers and Associates offers small business health insurance quotes from several carriers such as Aetna, Anthem, Assurant, Humana, Medical Mutual and United Healthcare.
Contact us to discuss your group health insurance needs.
Category: Group Health Insurance
Ohio Group Health Insurance Application
Whether you manage a small or large number of employees, it can be a painstaking and time consuming process to obtain group health insurance quotes in Ohio. If you have a new business or are shopping for better rates on your existing plan, correctly filling out applications with several companies can be a tedious process for your employees.
The advent of healthcare reform has made things even more complicated. And the group insurance exchange rollout has been even worse than the individual exchange. In short, you still need an agent.
Universal Group Census For Health Insurance Quotes
The good news is we have a simple census form that can be used to run quotes with all of the major carriers here in Ohio including: Aetna, Anthem BCBS, Humana, Medical Mutual and United Healthcare. The group size must between two and fifty employees.
The simplicity of this new application makes quoting small and medium sized business groups in Ohio much easier than before. Less paperwork is needed and should the employer choose one of the aforementioned insurance companies, then enrollment can be quick and easy.
Underwriting and Group Insurance Enrollment in Ohio
From beginning to end, underwriting and enrolling a new small group or transferring an existing small group with any carrier can take a month or more depending on the number of employees electing coverage. Employers and their human resources staff should count on quite a bit of back and forth before everything is in place. Thus it is always a good idea to get the process started as soon as possible.
While no one person can be denied coverage, group health insurance providers can be meticulous in their approach. They may want to know about your previous coverage and will also want to see tax forms including your wage and tax report. In other words, they want to make sure that you are an actual company with employees.
The Agent’s Role In Group Health Insurance
We negotiate with each carrier in order to lower the group’s risk factor – and in many cases we are successful. Insurance providers are trying to win your business just like you are trying to win the business of your clientele. Negotiations are always part of this process. We have good relationships with all of the carriers mentioned above as well as some other niche players and we will work diligently to negotiate the best premiums for our clients.
Hyers and Associates, Inc. is an independent agency serving the entire state of Ohio and beyond. We work with Aetna, Anthem, Medical Mutual, United Healthcare and several other insurance providers and can provide a universal application to your employees for quoting and enrollment purposes. Should you have any questions about your health insurance and/or benefit options, please contact us today.
Category: Group Health Insurance
Employer Health Insurance Mandates – Fees, Fines and Penalties
In an overall effort to insure more Americans, “pay or play” mandates appear to be a part of the Obama administrations health care reform efforts. While this legislation is still in its infancy, it is moving quickly as Congress attempts to draft a bill before summer recess.
Mandates already exist in the State of Massachusetts, but this legislation would encompass the entire country – affecting employer based groups as well as individuals. Accessing fines to those who are non-compliant should work well to get more individuals, families and groups insured, but it is unclear as to whether this will lower the overall cost of health care.
How Much is the Employer Health Insurance Fine?
Should this legislation pass, employer based groups with 50 employees or more not offering group health insurance would be fined $750 per year per employee. Any collected fines would be theoretically paid to the federal government and used to subsidize health care reform measures.
How Much is the Individual Health Insurance Fine?
Individuals without medical coverage would be accessed a fine ranging from $250-$1000 dollars. At this time, the penalty amount is unclear although most agree that the fine would be closer to $250 per year. Those with low income or who are considered hardship cases would be exempt from the penalty or otherwise be subsidized through government programs.
Insurers Must Cover Preexisting Conditions
Legislation would also force health insurance carriers to offer insurance to all regardless of any preexisting conditions. Health insurers would no longer be allowed to choose only the healthiest of Americans to insure. In a nutshell, applicants could no longer be declined due to poor health history.
Government Health Exchanges
Additionally, either a government run insurance option or so-called health exchange could be part of any bill. This proposal has met strong backlash from Republicans and private health insurance carriers alike as worries mount over tax payer costs and the ability for private insurers to compete. Another option proposed would be to create a non profit insurance carrier to compete with private companies.
It is difficult to guess what the final draft will look like as health care reform legislation passes through the House, Senate and ultimately to the President, but it is sure to contain mandates, fines and/or penalties of some kind. Most likely, employer groups who do not currently offer insurance to their employees will need to move quickly in order to become compliant. Individuals and families will have more options to purchase health insurance from either private, public or non-profit carriers.
Category: Group Health Insurance
Saving On Your Group Health Insurance Premiums
This most recent downward economic spiral is negatively impacting the bottom line for many corporations. Companies both large and small are laying off employees at record levels in order to maintain profitability. Many businesses are simply looking for immediate ways to lower costs. A simple, yet effective solution is to purchase less expensive group health insurance coverage.
Changing health insurance plans or switching group carriers does not necessarily mean less coverage for the business and its employees. Many carriers are willing to negotiate monthly premiums to maintain a valued client or to procure a new one. An important piece of the transaction is the insurance agent or agency.
Independent Group Health Insurance Agents and Agencies
An independent agent can be a valuable asset to any business owner. Experienced agents will be licensed with several carriers and can “shop” the coverage with several reputable carriers such as Anthem Blue Cross & Blue Shield, Aetna, Assurant Health, Humana, Medical Mutual, United Healthcare and others.
Independent agents might also have a direct line to the underwriter working at the preferred insurance company. By opening up a dialogue with those who determine price, negotiations can take place in order to reduce the group risk factor. Less risk and lower premiums will save the business owner valuable dollars.
For the business owner, it is worth knowing that agents are not usually paid a commission based on the amount of premium they bring to the health carrier. Rather, most are compensate based on the number of insured employees in the group. In this way, an agent will work hard to negotiate a lower rate for new and old clients alike. When rate increases occur, the agent can price the group policy with new carriers and maintain their book of business.
HSA, FSA, HRA and Self Insurance Group Health Insurance Plans
Knowledgeable agents can also recommend a suitable plan for a new business or for a company looking to change coverage plans. HSA and HRA qualified plans are innovative options in the employer market worth exploring. Typically health savings account qualified plans will have a higher deductible, but much lower premiums. Employers can make contributions to the employees health savings account which will help offset a change in deductible. Employees can use the accumulated funds for routine medical expenses as well as meeting the deductible. Additionally, contributions to an HSA provide tax advantages to the company and the insured.
In summary, there are many benefit options available in the group health insurance market. Independent agents and group health insurance agencies like ours working through several carriers can be a valuable asset to your corporation. Negotiating with the preferred carrier and implementing innovative products can lower monthly premiums significantly for the business owner.
Category: Group Health Insurance
Ohio Group Health Insurance Quotes
Health insurance premiums will rise year over year for most Ohio businesses. In some cases, rate increases will be well above 10%. Fortunately for business owners, the group health insurance market is a competitive industry.
There are several insurance companies willing to undercut their competitors in order to enroll new clients. A business entity, depending on its size, might save thousands of dollars by changing carriers.
Compare Multiple Group Health Insurance Plans and Prices
In most cases, the group coordinator only needs to request multiple quotes from a licensed agency. The agency (us) will need detailed information about the group such as the number of participants, gender, age, and health history. With this information, the insurance carriers can establish a risk factor for the group. Once the carrier is satisfied they have a good understanding of the plan participants, they are able to provide an accurate quote.
There are several major players in the group health insurance market in Ohio – including Aetna, Anthem Blue Cross & Blue Shield, Assurant Health, Humana, Medical Mutual of Ohio, United Health Care, and others. It is surprising to see the differences in premiums from one company to the next. Depending on group size, location and previous claims experience – one insurance carrier might be much more competitively priced than another. The easiest way for a business owner to lower their premiums is to simply shop their plan around.
Group Health Savings Account Qualified Plans
Often times groups might change to a different health plan altogether. Recently, health savings accounts (HSAs) have become a popular alternative to traditional coverage. HSAs can shift more of the responsibility to the insured, thus reducing the employer’s cost. The business owner might choose to mitigate a perceived reduction in coverage by contributing tax deferred dollars to the employee’s health savings account. Factoring in the employer contribution, HSA group health insurance plans are still less expensive than their more comprehensive counterparts.
In summary, it is wise for business owners to request new quotes on their group plans every year or two. By working with an independent agency like Hyers and Associates, groups can compare several plans and usually achieve significant savings by changing carriers or negotiating with their present insurance provider.
Contact us today to learn more about how we can help your business reduce your group premiums.
Category: Group Health Insurance