“My employees really want health benefits, and it’s almost impossible to hire new people without a plan.” If this thought has been going through your head this year you are probably considering implementing employee health insurance for your business. Now is the time to start the process for activation on January 1, 2022. You need time to choose a program that works for your bottom line, and your broker needs time to onboard your employees to ensure they are appropriately covered.
Taking the plunge into the world of employee benefits does not have to be complex or expensive. Your broker should work with you to find the best alternative for your business. The decision is more than dollars and cents; you must consider how many employees you have and their ages, health, and family situations. At Wharton & Power Insurance, our team will work with you to weigh all the options and elect the best solution for you and your business. Once you have chosen a plan, we then help your employees sign up for the option that best suits their situation. We offer one-on-one and group meetings, in-person or virtual, to help each employee understand the plan and the process. While the path to implementing a health plan is not difficult, it is time-consuming hence why it’s important to act now.
Introduced by the US Departments of Health & Human Services and the Treasury a couple of years ago, the ICHRA program offers increased coverage flexibility for employees, fewer restrictions for employers, wider availability to varying employee classifications, and no limits on contribution or participation levels.
Unlike traditional health insurance plans, ICHRA allows small businesses to offer pre-tax funds toward employee health insurance for those who want it without having to worry about the percentage of employee participation required by traditional plans. Businesses can set a budget that works for both their bottom line and their employees, rather than have the amount mandated. We find that for many small businesses, the ICHRA program is a win/win for both the employer and the employees.
Another employee health benefits option for small employers is a gross-up wage plan. It used to be that businesses would give the additional money directly to the employee via payroll and hope that it was spent on health insurance. Wharton & Power Insurance now has a partner program that ensures that employees are covered. The gross-up contributions are paid to a third party who manages the distribution, paying the employees’ premiums directly to the insurer. Our Team helps each employee find the best coverage for their situation, including those who qualify for a subsidy under the Affordable Care Act. If the employer contribution exceeds the cost of the insurance, then the employee can use the money to purchase other coverage such as dental or vision.
No more thought bubbles – it’s time to act on your best intentions for your team. Reach out to me to uncover an affordable way to offer employee health insurance. Send me an email or give me a call at 317-663-4138.