If you run a medium to large sized business there is a good chance you have an employee workforce which operates out of multiple states. In this case it can be challenging to provide them with medical insurance. Healthcare insurance solutions will often have requirements which are state specific, making it tough for employees that operate across state lines. The good news is that there are some options available.
Businesses which have employees that work from different parts of the country will often not qualify for group medical insurance plans because of requirements which are specific to certain states. There are other cases where employees are willing to pay for their own individual coverage, but will then want their employers to pitch in. Oftentimes businesses will find it too challenging and even frustrating to deal with the plethora or rules that exist within the SHOP marketplace.
Provide A Single National Plan
Offering employees a single national plan eradicates the requirement to keep abreast of the constantly changing rules of multiple states. Workers will all get identical medical insurance irrespective of where they are located, and no one will be left out. However, the downside to this approach is that your options will be limited since there are few insurance firms that provide national plans, and those that do will charge a lot, which could be a problem for some businesses.
Offer Different Plans By State
Some employers choose to offer different plans based on the states where their employees work. This will allow them to get coverage which is suitable to their individual needs. However, this option can be tedious as you will have to deal with numerous policies, which can be both time consuming as well as complicated. Businesses which are situated in states that have their own medical coverage exchange will need to open an account for every marketplace as opposed to using just one account within the federal exchange.
Consider A Health Reimbursement Arrangement
A number of medium sized businesses are turning to HRAs as they allow them to set aside a monthly allowance for all their workers which are fixed irrespective of what state they operate out of. Workers can then buy individual policies and ask for reimbursement for their premium (as well as additional out of pocket costs which are qualified).
HRAs give employees the advantage of choosing the coverage which is best for them while allowing all of them to get an equal amount of funds which can be put towards their healthcare costs. It also eradicates a lot of the administrative hassles that will be encountered with group medical plans. HRAs will save companies money when compared to other policies.
Group medical insurance may not be the best option for everyone, and the other options available for employees who work in different states can be tedious or too expensive. This is why many experts believe that a health reimbursement arrangement is the best option for meeting the needs of employees.