Obama Care summary for small business (Less than 50 employees)
By Hubie Laugharn
This is what we know as of 2-18-13 about Obama Care for Small Business
Employer does not have to provide health insurance and cannot be penalized.
- Small groups will be able to purchase group health insurance through the exchange. The exchange for small group is called S.H.O.P. within “Covered California” (the name of the California exchange).
Finally a good trend in small business group health insurance and employee benefit plans for Southern California!
Cut costs by up to 50% while maintaining benefits!
The rising cost of health coverage has impacted the ability of small businesses to offer affordable health coverage to employees. In general, small businesses may be able to offer health coverage to employees, but they are unable to contribute as much to their employees’ coverage as larger companies. This is a disturbing trend for public health advocates, as most new jobs being generated come from small businesses.
In the last several years, the subject of small business group health insurance and employee benefit plans has been extremely controversial to say the least. Should the Government provide it? Who should get it? Who should pay for it? The issue is not getting any clearer or less expensive. Large corporations will always be able to afford very lavish employee benefit packages for their executives, but most small businesses are feeling the squeeze. Small business owners know a well appointed health care package is likely to add to their company’s appeal and assist in gaining more talented applicants while keeping the current employees happy. But at what cost? Staff morale is normally higher when an attractive employee benefit plan is offered, but the employer has to be able to afford it.
For many employers, group health insurance is perhaps the most important fringe benefit they offer because it’s advantageous tax-wise to both employers and employees. Employers benefit because they get a tax deduction for offering coverage. Employees benefit because compensation employers provide them with to meet premiums is not taxed. Plus the employee if paying or contributing normally pays a lower premium as part of a group. The insurers are able to provide this coverage at a discount because they’re taking on a pool of insureds that they can spread the risk out among.
Most small business employee benefit plans are currently paid for as if everyone in the group hits their max out of pocket and reaches their deductibles. However, study after study shows that the actual utilization of the plan is only a small fraction of that, meaning most employees within a group do not utilize their plan. 4-7 % of employees within a group will over utilize their health plan. The vast majority will hardly ever use their plan.
Solana Insurance Service Employee Benefits and its Third Party Administrator (TPA) offer a way for small business owners to use this concrete fact to dramatically lower their group health insurance premiums and the yearly cost to offer employee benefit plans.
Located in Newport Beach, in the heart of Orange County, Solana Insurance Service Employee Benefits offers its revolutionary service to a steadily growing list of savvy business owners in Northern and Southern California who know that saving money on group health insurance means more money to the bottom line. By taking a different approach, Solana is able to give small business owners the tools necessary to create a partially self funded plan just like large corporations use. Solana and its TPA provide the management to reduce risk so that employers can sleep easy knowing that they are well prepared for any mishap that an employee may incur. With Solana’s employer driven health plan approach, small businesses are able to provide attractive benefit plans for employees while reducing the costs dramatically. On average, small businesses save 25 to 50% using this method, and 97% of businesses who try this approach since 1996 continue with it year after year. The simple fact is that it works well and small to medium sized businesses can no longer afford to throw money away year after year.
Small business group health insurance
Call us today to find out more about this exciting new trend in small business group health insurance and employee benefit plans. Call 949-285-7209 and we’ll give you a 20 minute presentation in your office. www.employerdrivenhealthplans.com firstname.lastname@example.org