Employers do not have to purchase ObamaCare Group Health Plans

Many employers are under the misconception that they have to purchase Group Health Plans through the CA Health Exchange.  Nothing could be further from the truth.  The only reason an employer would obtain Business Health Insurance from the SHOP (Small Employer Health Options Program) is to possibly qualify for the elusive tax credits that the government have been trumpeting for years now.  If I sound bitter, I am.  To be eligible for one of these tax credits, it is a very narrow window for a business.  To say its misleading, is being kind.  In rough numbers, out of 100 employer groups that apply for the tax credit, about 3 or 4 actually qualify, and out of those, many receive minimal credits totaling a few hundred dollars.  Employers that want to insure their workforce do not have to purchase, and probably shouldn’t purchase from Covered CA.  At least until the dust settles and they iron out the kinks.

Employee Benefit plans for employers do not have to cost a fortune

When an employer is shopping for a Benefits Plan for the employees, sometimes there is a bit of sticker shock with the pricing.  Prices have risen sharply in the past few years, for a number of reasons.  When ObamaCare came about, many Health Agents like myself, commented that the prices of plans would immediately begin to rise, even in 2010.  We think this happened quickly in anticipation of the forseen cost increases by the insurance companies.  If they waited til ObamaCare was in full swing and then tried to raise the prices 75-85%, we would have had a revolution to deal with, not to mention the political fallout with Obama.  There are some alternatives to the high cost of the traditional Health Insurance plans out there.  The strategy involves using other quality insurance products to offset the deductibles

Ancillary benefits are really valued by employees, and they can be totally worker paid

When you offer Ancillary Benefits to the employees, the employer is usually not responsible to contribute anything towards the coverage.  It really allows employees to obtain coverage they would not have otherwise had access to.  Ancillary benefits can be deductible funding mechanisms, Accident plans, Cancer policies, Disability, Life insurance, etc.  Another benefit for employers is that anything that an employee pays for with payroll deduction can be done pre-taxed, meaning that the Workers Comp rates are decreased, FICA goes down and both the employee and employer wins.

 

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