Employee Benefits
Individual Coverage Health Reimbursement Arrangement
Employers and employees are struggling with the raising costs of group health insurance plans, a solution may be an Individual Health Reimbursement Arrangement (ICHRA). An ICHRA allows employers to pay all or part of an employee's individual health insurance with non-taxed dollars. The way it works, is that employees purchase a health insurance plan on the Federal marketplace, submits prove of coverage to their employer, and the employer reimburses the employee the agreed upon amount. There are several advantages to an ICHRA vs a group health insurance plan, 1. an ICHRA can satisfies the large employer (over 50 employees) requirement [...]
QSEHRA Health Reimbursement Arrangement
A QSEHRA allows small employers to reimburse their employee's individual health insurance with tax free dollars. Employees purchase their own health insurance on healthcare.gov and then they submit the premium statement to the employer and the employer reimburses the employee for part or all of the cost. The advantage is that each employee can choose the plan that meets their own specific situation and the employer can offer their employees tax free benefits .
Level Funded Health Plans
Level funded health plans are partially self funded plans where the monthly premiums are used to pay claims. If the claims exceed the premium, the insurance will kick in and pay the rest of the claims. These plans work just like fully insured plans but they can save a business up to 35% . And, at the end of the year if there are premium dollars left in the account, half of the leftover amount is refunded to the business in the form of a credit. although these plans do not work for every group, it is worth exploring as [...]