10 reasons small businesses should switch to individual health insurance
TRANSCRIPT
10 Reasons Small Businesses Should
Switch to Individual Health Insurance
Step 1: Employer sets up a formal allowance for medical reimbursement.
How an Individual Health Insurance Reimbursement Plan Works:
Step 2: Each employee purchases an Individual or Family Health Insurance Plan with their own money.
Step 3: Employees request reimbursement from the allowance. The employer reimburses employees tax-free.
Offering Individual Health Insurance to your employees allows them to keep their insurance as long as they pay their premium. This
means that even if they or their dependant get sick and are no longer able to work, they can still keep their insurance.
#1 It’s PortableEmployees keep their health insurance if they or a dependent gets sick.
#2 It’s 20-60% Less Expensive
By switching to a Individual Health Insurance Reimbursement, employers and employees pay $4,000 to $12,000 less for the same
coverage. In addition, employees may be eligible for federal subsidies, making policies about one-fourth the cost of group
policies.
Both Employers and Employees Save Money.
You have the freedom to change the health benefits your company offers at any time, without causing any
disruption to your employees’ coverage.
#3 It’s PermanentCoverage cannot be canceled as long as employees pay their premium.
Instead of having to choose a network of medical providers for your employees, they are able to choose for
themselves, saving you from unwittingly making an unpopular decision.
#4 It’s Not LimitedEmployees get to pick their own plans, doctors, and hospitals.
As an employer, you can offer your employees the opportunity to choose their own coverage terms including their copay,
annual deductible, and coinsurance. Ultimately, they are in control, saving you from yet another potentially bad decision.
#5 It’s CustomizableEmployees choose their own copay, annual deductible, and coinsurance.
Employees may be eligible to get $2,000 to $12,000 in federal subsidies each year.
#6 It’s Subsidized
Unlike with Group Health Insurance, employees participating in Individual Health Insurance may be eligible for federal
subsidies. Utilizing these subsidies makes your health policy even more affordable for you and your employees.
Insurance companies can only increase premiums according to the overall costs of the group from the prior year. With Individual
Health Insurance Reimbursement, the cost and risk is spread across a large group (the whole state) rather than a small group, like a
company, keeping premiums low.
#7 It’s StablePremiums can’t spike due to a large claim in the group.
Employees can choose a job based on the work instead of the offered benefits. In turn, employers can offer jobs to
potential employees without worrying that the cost of benefits will cause a problem.
#8 It’s Good For CareersPeople are free to pursue jobs without losing their coverage.
Individual Health Insurance is better for employers because it is easier to manage and implement. This allows
both the employer and employee to spend more time on other important matters.
#9 It’s Good For BusinessManagement spends more time focusing on customers and products.
Compared to their overseas competitors who do not offer group coverage to employees, some U.S. companies are no longer price-
competitive. Many employers can’t afford to provide Group Insurance. Switching their employees to a Individual Health
Insurance Reimbursement will make companies competitive again, and greatly improve the health of their employees.
#10 It’s Good For AmericaIndividual Healthcare benefits make American businesses more competitive.
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