Are You Prepared to Offer Health Insurance? Part 2: Plan Options

In our last blog, we spoke about the monetary costs of providing health insurance to your employees and the intangible costs to your business if you don’t.

Close up of a doctor's medical lab coat with a stethoscope around the doctor's neck and a pocket full of pens being seen.
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April 21st, 2019
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In our last blog, we spoke about the monetary costs of providing health insurance to your employees and the intangible costs to your business if you don’t. I remember when Brigade Bookkeeping really began to grow. At that time, we had to seriously evaluate the costs and benefits of adding a competitive insurance plan to our hiring package. As you consider insurance plan options, it is important to choose a plan that works within your budget, and provides benefits your employees value.

There are five common traditional health insurance plan types:

  • Preferred Provider Organization (PPO)
  • Health Maintenance Organization (HMO)
  • Point-of-Service (POS)
  • Exclusive Provider Organization (EPO)
  • Indemnity Health Insurance Plans

These plans have some commonalities as well as distinct differences. They vary by:

  • Administrative requirements
  • Flexibility in the selection of physicians, health facilities and procedures·
  • Ease of access to preventative, emergency, and other treatments
  • Price

If you find that traditional health insurance options aren’t within your current budget, there are a few non-traditional alternatives you can consider:

  • Health Savings Accounts (HSA) are tax-favored savings accounts that are used with HSA-compatible, high-deductible health plans to pay for qualifying medical expenses. One great feature of an HSA is that unused funds roll over each year and accrue interest, tax-free.
  • Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) are designed for businesses with fewer than 50 employees. The title sounds complicated, but the benefit is straightforward. The arrangement allows companies to offer employees a monthly allowance of tax-free money to pay for health care services of their choosing, including an individual health insurance policy.

We understand that this is a lot to digest. At Brigade Bookkeeping, we have experience in benefit plan selection and administration. Our specialists can help your business choose the right option for your goals, or review the effectiveness of your current benefits package. Let’s make a “plan” to talk soon!

 

Additional Sources:
7 types of health insurance plans” by Susan Niemann, 11/9/18

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