While finding the best healthcare insurance plan for your workers can be tough, it has become a lot easier. The Affordable Care Act provides more options for employers, which makes it easier for them to find a plan that suits their needs. Below are some options to consider when searching for the most optimal employee healthcare plan.
Individual Health Insurance Plans
This is arguably one of the most popular plans available today. It allows individual employees to choose their own health insurance under a defined contribution health plan, which means that the employer sets up allowances each month for the reimbursement of insurance. To enroll in the individual health insurance plan the employees would research the marketplace of their state, and some of the benefits which are associated with this option include employees paying less than they would for standard group plans, predictable monthly fees and tax deductions. Also, because employees choose their own plans this gives them greater control.
The SHOP Market
SHOP, which stands for Small Business Health Options Program, is a system designed for businesses that employ less than fifty workers. It allows them to offer dental or small group medical plans. Some businesses may also be eligible for a tax credit, and the smaller the business the larger the size of the credit.
The Private Health Exchange
The private health exchange has similarities with the defined contribution health plan. It gives employers the ability to provide their staff with money to use for the purchase of health coverage, within the range of specific vendors. Both group and individual health plans are available within private exchanges, and the exchanges themselves can be acquired through specialists and insurance brokers.
An Important Note About Co-ops
One of the forces behind the development of health insurance cooperatives is the desire to increase competition within the industry while offering more choices and reducing the costs of premiums. The Affordable Care Act is associated with these cooperatives, and employers that wish to acquire co-op coverage will need to obtain it via the health insurance marketplace.
By the end of 2015 about 50 percent of medical co-ops in the U.S. were either shut down or planning to which has made some question the long term viability of these option. A number of circumstances reduced this system’s ability to create enough competition in the market.
Private Small Group Health Insurance
Employers who operate small businesses have the choice of selecting a group plan. These plans are typically offered through standard health insurance dealers, and can be an excellent choice in states where the options offered by the government are not varied or effective.
As employers take the time to decide which health insurance plan is best for their employees, they should consider the flexibility of their budgets as well as the various type of medical coverage that is available. In most cases you will find an insurance option that is ideal for your business. The ACA has ensured that the number of options available are some of the highest ever seen.