Florida Group Health Insurance Blog

Offering health insurance to employees is a great way to attract quality candidates and to boost employee retention. If small or large business owners are interested in trying to save on the premiums they’re going to pay for employees, there are several things they can do to control costs.

One of the most important things for employers is to make sure they have properly considered all options before selecting an insurance plan for employees. If an employer is looking to provide insurance for its employees, it will be important to seek quotations from more than one insurance company. Also, employers should be certain to consider each plan the companies have to offer. In order to find the best price, employers will need to focus on getting quotes from multiple insurance companies and then evaluating the various types of health insurance plans offered within each of these companies.

Another way that business owners can help to control the cost of providing group health care insurance is by shifting some of those costs to employees. One of the most common ways to share these costs is by increasing the employee’s out-of-pocket costs by choosing higher deductibles, copayments and coinsurance. Another more direct method of sharing the cost of insurance with employees involves sharing in the cost of the monthly health care premiums. In choosing this option, both the employer and the employees would be sharing the cost of the insurance premiums.

In addition, there may be several income tax incentives or benefits one can derive as a business owner when he or she chooses to provide health insurance to employees.  Premiums paid are usually considered a business expense and are fully deductible under federal income taxes. Under the new healthcare law, small business will receive 35 percent tax credit on the premiums they pay for their employees’ health coverage. Businesses, including non-profit organizations, will be eligible for the tax credit if they have fewer than 25 full-time employees, pay an average salary of $50,000 or less per year, and cover at least 50 percent of their workers’ health costs.

By offering employees health care, an employer can help build the company’s reputation and attract quality employees who are more likely to stay in their positions for longer periods of time.

To learn more visit: http://www.grouphealthflorida.com

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The IRS has announced changes to health savings accounts contribution limits for 2011. Due to a cost of living, contribution limits will remain as they are in 2010.

According to a census of insurance firms that America’s Health Insurance Plans released last month, more than 10 million U.S. residents are covered by health savings accounts (HSAs). These plans allow individuals to contribute thousands of pre-tax dollars to HSAs, which participants may spend on health care needs or roll over indefinitely. HSA accounts were initially chosen by consumers who might otherwise go without insurance because of its high cost or their good health, but the recent rise has been fueled by more companies and their employees opting for the plans. Choosing these plans does shift the risk onto the patient but offers less-expensive premiums than traditional coverage.

Recently, the IRS released the 2011 cost-of -living adjusted HSA contribution limits. Individuals must have a high deductible plan in order to qualify to make an HSA contribution. HSA contribution limits, along with high-deductible health plan (HDHP) deductibles and out-of-pocket maximums, will stay the same as they are in 2010. This decision is due to the cost-of-living remaining flat. After the application of the cost-of-living adjustment rules, the changes in the Consumer Price Index for the relevant period did not result in any changes to the HSA amounts for 2011.
Under Internal Revenue Service Revenue Procedure 2010-22:

The annual HSA contribution limit for employee-only coverage will remain at $3,050 ($6,150 for family coverage).

The minimum deductible for employee-only HDHP coverage will remain at $1,200 ($2,400 for family coverage)

The limit on maximum out-of-pocket expenses (including deductibles, co-pays and co-insurance but not premiums) for employee-only coverage will remain at $5,950 ($11,900 for family coverage).
The catch-up contribution limit, for individuals who are 55 or older, will remain at $1,000.

While most of the HSA limits will stay the same, one significant change that will occur in 2011 is the penalty on taxable, non-medical distributions. The penalty for 2010 is 10% and this will increase to 20% starting in 2011.

Bradley Palmer is with Grouphealthflorida.com offering Florida Group Health Insurance. To learn more about group health insurance, visit http://www.grouphealthflorida.com.

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While many believe that employee paid group health insurance only has great benefits for employees, it can also have great benefits for employers. Employers can use this benefit as a means of attracting employees.

Having a group health policy available for employees is a great way for employees to build their reputation as an employer of choice. Potential job seekers will more likely be attracted to a company that offers health benefits than one that does not. Employers who choose to offer a benefit package will then be able to attract the top professionals in the field.

In addition, offering group health insurance will help with employee retention. Employees who have benefits are less likely to leave a job that offers good benefits. While some employees may be tempted to leave their job for one that offers higher pay, they would be more likely to stay at a job with lower pay and good benefits rather than taking a higher paying job with little or no benefits.

Another benefit of purchasing group health insurance for employees is that it will help to keep employees healthy. People who have medical insurance will be healthier than those who go without it. They will take the opportunity to engage in preventative health measures, as it will be covered by their benefits. Also, if employees do get sick, they will be able to see a doctor and recover faster than those who are not able to see a doctor for lack of benefits. This means that they will miss less time from work and can be more productive.

Finally, offering employers insurance through a group plan offers businesses opportunities for tax breaks. Under the new health care bill, small businesses are eligible for tax breaks for offering coverage to their employees.

While getting group coverage for employees can be expensive for employers, it will actually pay off in the long run. Contact a licensed insurance agent who can provide your small business with information about group health policies.

To learn more visit: http://www.grouphealthflorida.com

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If you own a business and are looking for an affordable group insurance plan that has versatile coverage, then a group point-of-service (POS) plan could be an option for you. POS plans are a form of managed care hybrid plans, and are similar to group HMO plans or group PPO plans.

A basic principle governs POS plans: employees get lower medical costs in exchange for restricting their health care choices. A group POS plan will give your employees the option to decide when, where, and how they receive benefits and will give them control over their out-of-pocket expenses.

Group POS plans operate using a “two-level” benefits system: in-plan and out-of-plan. In-plan refers to the care received from a list of doctors who are in the plan’s pre-approved network. Out-of-plan refers to care received from doctors who have not been pre-approved and are thus not in the network. In-plan care provides employees with savings, while out-of-plan care can provide flexibility and freedom in choosing the right healthcare provider.

Group POS plans are not the right choice for all employers and employees, so employers must carefully weigh the benefits and disadvantages of the plan before making a choice.

Some advantages of group POS plans are:

Employees will not be limited to network care providers.

For in-network care, co-payments will be low and the plan’s deductible will not be applied.

Out-of-pocket costs for employees will be limited.

Employees will have more freedom than members of other managed care plans.

Employees will not need a referral from their primary caregiver for any necessary, emergency services.

Some disadvantages of group POS plans are:

Co-payments for any out-of-network care employees receive will be high.

The plan deductible will be applied to employees’ out-of-network care.

Employees may experience problems getting a referral to a specialist.

If employees are traveling outside of the plan’s network-area or have a dependent living outside of it, benefits will cost more out-of-pocket.

Choosing a group POS plan may be the right choice for your employees. A licensed Florida insurance agent can help you decide if this type of plan is right for your employees.

Bradley Palmer is with Grouphealthflorida.com offering Florida Group Health Insurance. To learn more about group health insurance, visit http://www.grouphealthflorida.com.

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