Americans are searching for alternatives to the rising cost of traditional health insurance. Employees of small businesses are also on the lookout for some sort of protection without draining their monthly budget. Most of the time it is a group health insurance policy that is accessible which carries a strict participation condition such as requiring at least 70% of the employees covered to enroll or have coverage from another source. There are health insurance alternatives that meet this requirement but most don’t. This is why it is necessary to find a good alternative to traditional health insurance. Here we have 5 employee alternatives to health insurance that you will surely find useful.
1. Health Savings Account (HSA). A health savings account could be an alternative to traditional health insurance. This will help companies provide medical coverage at the same time provide tax benefits. The money deposited into the health savings account is pre-tax deducted. There are also no fines on savings or withdrawals as long as the money goes to covering healthcare costs. HSA is one of the alternative ways to have protection and cut costs when faced with high deductibles. Once the portion of the claim is paid for, the insurance company will cover the remaining portion. The contributions made into the account by either the employer or the individual are limited to a maximum amount each year.
2. Qualified Small Employer Health Reimbursement Arrangement (QSEHRA). This is a personalized health benefit, a lucrative option SMBs since it eliminates many obstacles linked to offering employee health insurance (high costs, minimum contributions, necessary enrollment). Employers, mostly small business owners will set up QSEHRA to give personnel an individual health insurance plan through a private, public, or an independent insurance provider.
3. Bronze Health Insurance Plan. According to the Affordable Care Act, insurance plans are categorized into 4 metal groups. The bronze group is the initial and platinum the last. Insurance from the bronze category are least expensive to purchase and has a high deductible or the amount that needs to be paid by the insured before the insurance provides coverage.
4. Healthcare Sharing Ministry. Healthcare sharing ministries are faith-based expense-sharing programs. Generally, members who are sharing religious opinions contribute a specific amount each month to their savings. When a member needs help in paying healthcare expenses, they need to submit a request to the ministry and the other members will decide to whether approve the demand. If the request is approved, the sum is paid from the savings contribution of other members.
5. No Insurance. This is the last alternative to employee health insurance. Most businesses do this when they cannot afford a traditional health insurance plan for their employees. Others are not aware that independent health insurance reimbursements are applicable on a tax-advantaged basis thus they go down the no insurance route. Still, others don’t want to contribute to the medical coverage cost of their employees because they are at a tipping point in their business.