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How
to Lower Your Group Health Insurance Costs
Learn
The Strategies That Smart Businesses Are Using To Reduce Their
Premiums By Up to 70%
At
ColoHealth
our objective is to help small business owners minimize their
health insurance costs, while maximizing the benefits they can
provide to their employees. We have access to the
lowest group rates in Colorado, so that you can compare plans
from several companies to be sure that you are getting the best
value possible. Simply fill out our Quote
Request Census Form, we’ll price shop your quote
and will get back to you in a couple days with your best options.
We can show you how an HSA-qualified plan might benefit you,
and also help you set up section 125 POP plans, handle COBRA
situations, and easily add and delete employees.
Many
of our clients are also saving thousands of dollars a year by
setting up a Health Reimbursement Arrangement, or HRA, for their
employees. This allows them to reimburse the employees for low-cost
individual health insurance coverage, instead of paying for
expensive group coverage.
The
Difference between Group Coverage and Individual Coverage
Because
group insurance rates are two to three times as expensive as
individual plans, we believe that the best option for
most small businesses of less than 20 employees is to let the
employees sign up for individual coverage, rather than group
coverage. These are the main advantages of this strategy:
- Individual
plans are 100% portable, meaning that they are not tied to
the employer's business. The employee can take the coverage
with them, wherever they go.
- Because
they are individually underwritten, they are much less expensive. If
everyone in the group is in good health, the total health insurance premium
can be reduced by 40 – 70%.
An employer cannot pay for individual health insurance, but if you have not offered a group plan to your employees within the past 12 months, you can reimburse your employees for their low-cost individual health insurance premiums, tax-free through a Section 105 HRA Plan. An HRA, or Health Reimbursement Arrangement, is simply an agreement that the employer makes to reimburse certain medical expenses, including health insurance, that the employee incurs. The reimbursement is considered a tax-free fringe benefit to the employee, and a business expense for the employer. The
end result is that you may be able cut your costs in half, while providing
your employees with better coverage. This works well for small businesses
with healthy employees. To learn about whether individual health insurance
coverage and an HRA plan is right for you and your employees, please Visit
our 105 HRA Plans for Small
Business Owners page.
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