In this post, we will cover the Top 5 Different Types Of Group Health Insurance Plans there are that’s available routes
for both the employers, and the employees to take…
- SHOP Marketplace
- Individual Health Insurance
- Private Exchange
- Private Small Group Plan
There are plenty different structures to the Co-Op approach. For small groups, joining a co-op in the health insurance industry is a way more traditional procedure. The idea is the co-operative plans build the structure to buy, and spreads the risk to a larger group. All co-op’s typically have a different schemes, and are solely dependent on regional insurance underwriting laws and the co-op itself. Co-op plans fail to be stable most of the time, and the next option seems more reasonable to the future of Group Health Insurance.
This, by far, can be one of the better plan options for Small Businesses with typically under 50 employees, giving benefits both to the employer, and the employee with a structure that is solid and doesn’t easily collapse in government, or employer debts. The SHOP allows the employer and employee to have options in the Health Insurance Marketplace. While certain states have different criteria on the employer, if these requirements are still met on the behalf of the company, some can have the freedom to opt out of a group health insurance and stay with their individual insurance instead. In most cases, if an employer has 5 employees or less, %100 of the employees must be entitled to the group health insurance plan. If the employer has anywhere from 6 to 50 employees, the requirement is only %75 of the employees to be entitled to the group plan. This allows a bit of leeway when it comes to having employees that want the job, but aren’t interested in having a group plan, or pitching in for one anyway. While this option of having the SHOP Marketplace is new to group insurance, it isn’t far fetched from the options that were already available on the market.
Small groups that use the SHOP marketplace also have given access to tax credits. These tax credits are usually only accessed through the SHOP marketplace, and can be registered while consulting with a marketplace broker, just as brokers would with other private small group plans.
Individual Health Insurance
This is, by far, the most cost-effective plan for employers, allowing a set dollar amount to be given to each employee on helping cover their Individual Health Insurance. This gives employers the option of covering their employee’s premium taxes with set levels of coverage depending on the employee’s position in the company (Example: Managers get $250/month while entry-level workers get $110/month towards their desired health plan). This method is cheaper than small group loans, and may very well be the future of Group plans for small business owners if the ACA Platform continues to stay around.
Private Health Exchange
With this option, everything is simply said and set in stone as far as pricing, coverage, and options go. Plan options can be individual as well as group-based. One of the simplest routes for employers with a defined contribution strategy.
Private Small Group Plan
Purchasing a private small group plan is also still an option for small groups today. These plans come in wide-variety with a plethora of factors for employers and brokers to discuss while settling for a perfect plan between the company and the agency. Small groups may find more options and carriers to choose from on the private market as compared to the SHOP, where some states only have one or two plans to choose from. While having wide-variety, these plans are hard to come by when finding the right one.