As a firm owner, determining the type of health coverage you can provide your employees and their families can seem like a daunting task, especially when it comes to knowing all of your options. There are a number of different health plans available to business owners in addition to traditional health plans.
This information about a few alternative healthcare options that are non-traditional plans may make it easier for you to understand your options, offer a new plan to your employees, or make changes to your existing plan.
Alternatives to Traditional Health Plans:
- High Deductible Health Plan (HDHP) with Health Savings Account (HSA) A high-deductible health plan (HDHP) usually has a lower monthly premium and a high deductible.
A Health Savings Account (HSA) is a pre-taxed savings account for qualified medical expenses only. This saves money by allowing you to use untaxed dollars to pay for deductibles, copayments, coinsurance, and some other expenses (but usually not health insurance premiums).
It is important to note that these plans can result in higher out-of-pocket expenses.
- Individual Coverage Health Reimbursement Arrangement (ICHRA) – These plans reimburse employees for insurance rather than buying it for them. Employers set up the program and determine which employees are eligible and the amount of reimbursement. Then the employees purchase the plans they choose.
- Minimum Essential Coverage (MEC) and Minimum Value Plans (MVP) – MEC plans generally cover preventive and wellness-related tests and treatments and are ACA compliant. MVPs pay at least 60% of the total cost of medical services for a standard population and include coverage of physician and inpatient hospital services.
There are several ways to provide your employees with sound health insurance coverage. The AIA Trust has partnered with Pendella to make choosing healthcare coverage simpler and more affordable. Members and firms have access to licensed benefits advisors who can answer questions and tailor programs around individual needs and benefit plan goals. You may contact Pendella to explore your options and get an online quote: click here to get started.
In addition, several webinars will be held in October and November: one about individual enrollment and two regarding firm and employee enrollment. Details can be found in our article about upcoming webinars here.
For the remainder of 2021, the open enrollment period for individual ACA health insurance will run from November 1, 2021 to December 15, 2021; however, some states will have later deadlines — details are available here: https://www.healthinsurance.org/faqs/what-are-the-deadlines-for-the-acas-open-enrollment-period/.
Learn more: The AIA Trust provides resources to answer your healthcare questions: https://theaiatrust.com/insurance/health-insurance/